Norwall Group Inc. reports results for the fourth quarter and year ended December 28, 2007



    BRAMPTON, ON, March 26 /CNW/ - Norwall Group Inc., one of North America's
largest manufacturers of residential wallcovering, announced the Corporation's
fourth quarter results today. The ongoing decline of the wallpaper industry
and the strong Canadian dollar continued to have a negative impact on our
results.
    The net loss for the three months ended December 28, 2007 was $380,000 on
net sales of $7,503,000 compared to a net loss of $225,000 on net sales of
$9,147,000 for the same period in 2006. The basic and diluted loss per common
share was $0.05 for the fourth quarter of 2007, compared to a loss of
$0.03 per common share for the same quarter of 2006.
    The loss for the year ended December 28, 2007 was $3,008,000 on net sales
of $37,410,000, compared to a net loss of $1,933,000 on net sales of
$40,969,000 in the prior year. The 2007 loss included unrealized foreign
exchange loss of $850,000 (2006 - ($2,000)). The basic and diluted loss per
common share for the year ended 2007 was $0.45 compared to a loss of $0.30 per
common share for the similar period in 2006.
    During the year the Corporation reduced debt by $1,091,000 and finished
the year with cash of $1,498,000.

    Norwall Group (TSX:NGI) manufactures quality residential wallpapers and
borders and distributes them to thousands of home centres, specialty stores
and mass merchants in Canada and through its wholly-owned operating
subsidiary, Patton Wallcoverings, in the United States.

    This Press Release contains forward-looking statements reflecting
management's current expectations regarding future results of operations,
economic performance, financial conditions, and achievements of the
Corporation. Actual results may differ materially from those in such
statements. The Corporation wishes to caution the reader that those important
factors described elsewhere in the commentary could affect the Corporation's
actual results and could cause such results to materially differ from those
expressed in any forward-looking statement made by, or on behalf of, the
Corporation.

    
                             NORWALL GROUP INC.
                    Consolidated Statements of Operations
         (In thousands of Canadian dollars, except per share amounts)

                                  FOR THE THREE MONTHS  FOR THE YEAR ENDEDED
                                          ENDED
                                  --------------------- ---------------------
                                   December   December   December   December
                                   28, 2007   29, 2006   28, 2007   29, 2006
                                  --------------------- ---------------------
    Sales                             7,503      9,147     37,410     40,969
    Cost of goods sold                5,525      6,967     28,049     30,251
                                  --------------------- ---------------------
    Gross profit                      1,978      2,180      9,361     10,718
    Selling, general and
     administrative expenses          2,400      2,717     11,420     12,958
                                  --------------------- ---------------------
    Loss before the undernoted         (422)      (537)    (2,059)    (2,240)
    Severance and termination costs       3         85         44        510
                                  --------------------- ---------------------
    Loss from operations before
     the following items               (425)      (622)    (2,103)    (2,750)
    Foreign exchange loss (gain)        (59)      (230)     1,403        (17)
    Interest expense                     61         91        327        435
                                  --------------------- ---------------------
    Loss before income taxes           (427)      (483)    (3,833)    (3,168)
    Recovery of income taxes            (47)      (258)      (825)    (1,235)
                                  --------------------- ---------------------
    Net loss for the period            (380)      (225)    (3,008)    (1,933)
                                  --------------------- ---------------------
    Basic and diluted loss
     per common share                 (0.05)     (0.03)     (0.45)     (0.30)
                                  --------------------- ---------------------
    Weighted and average number of
     common shares outstanding    7,135,032  6,486,393  6,661,027  6,486,393
                                  --------------------- ---------------------


                              NORWALL GROUP INC
                         CONSOLIDATED BALANCE SHEETS
                     (in thousands of Canadian dollars)

                                                   December 28,  December 29,
                                                          2007          2006
                                                             $             $
    Assets
    Current assets
    Cash                                                 1,498            29
    Accounts receivable                                  5,824         8,476
    Income taxes recoverable                                 -           456
    Inventories                                          8,532         9,776
    Merchandising supplies                               1,463           882
    Prepaid expenses and other                             516           622
                                                  ---------------------------
                                                        17,833        20,241
    Property, plant and equipment                       16,654        18,882
    Other assets                                             -            78
    Future income taxes                                  2,230         2,943
    Goodwill                                             1,693         1,693
                                                  ---------------------------
                                                        38,410        43,837
                                                  ---------------------------
                                                  ---------------------------

    Liabilities
    Current liabilities
    Demand loan                                              -         1,091
    Accounts payable and accrued liabilities             4,117         4,666
    Current portion of long-term debt                      323           306
                                                  ---------------------------
                                                         4,440         6,063
    Long-term debt                                       4,862         5,184
    Future income taxes                                    387         1,581
                                                  ---------------------------
                                                         9,689        12,828
                                                  ---------------------------
    Shareholders' Equity
    Share capital                                       33,134        32,336
    Accumulated other comprehensive loss                   (97)          (97)
    Deficit                                             (4,316)       (1,230)
                                                  ---------------------------
                                                        28,721        31,009
                                                  ---------------------------
                                                        38,410        43,837
                                                  ---------------------------
    

    %SEDAR: 00002584E




For further information:

For further information: (905) 791-2700; James J. Patton, President and
Chief Executive Officer, jpatton@norwallgroup.com; Edward Diochon, Vice
President of Finance, ediochon@norwallgroup.com

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NORWALL GROUP INC.

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