Rutter Announces Sale of Controls and Automation Business to Rockwell Automation



    ST. JOHN'S, Feb. 10 /CNW/ - Rutter Inc. (TSX: RUT) announced today that
it has entered into an agreement for the sale of its controls and automation
business to the Rockwell Automation Inc. group of companies. The transaction
will involve the sale of most of the assets of Rutter's wholly-owned
subsidiary, Rutter Hinz Inc. and its U.S. affiliate Rutter Hinz Inc. to the
Rockwell Group for $22 million, subject to a final working capital adjustment
which Rutter expects to be in its favour and Rockwell assuming the ongoing
contracts and liabilities of the controls and automation business. The
completion of the sale is also subject to a number of conditions, including
the release of the existing security by and confirmation of restructuring of
the Company's indebtedness with the principal lender.
    Ryan Hinz, President and CEO of Rutter stated, "the employees of the
controls and automation group will be offered employment with Rockwell. The
assets and employees of the consulting engineering offices in St. John's and
Clarenville, Newfoundland and Labrador, are not part of the sale and will
continue to operate as Rutter Engineering, a division of Rutter. Rockwell has
determined that there will no longer be a role for me in the new organization
and accordingly, I will not be joining their team."
    In commenting on the agreement announced today, Mr. David Beutel,
Chairman of the Board, stated that, "As noted in our release on our year end
results, Rutter has looked at all possible opportunities to address the debt
imbalance. The agreement announced today is a key step in our overall
restructuring plans and will allow us to significantly reduce total
outstanding debt. We expect to announce terms of the debt restructuring in the
near future. Our technology business has been growing well this year and we
look forward to the future with the many opportunities ahead in both the
Technologies segment and in the consulting engineering group."

    About Rutter Inc. - Rutter is a global enterprise focused on providing
innovative technologies and engineering solutions that improve the efficiency
and safety of operating assets in defense, marine, transportation, oil and gas
and other industrial sectors. Key activities of the enterprise include
technology development and marketing, outsource manufacturing of electronics
and electronic subassemblies and automation and control systems engineering.
For more information see www.rutter.ca

    Forward-Looking Statements

    This news release may contain forward-looking statements that involve
risks and uncertainties. These forward-looking statements reflect our current
expectations and are subject to a number of risks and uncertainties including,
but not limited to, change in technology and general market conditions. Due to
the many risks and uncertainties, Rutter Inc. cannot assure that
forward-looking statements that may be contained in this news release will be
realized.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this news release.
    %SEDAR: 00022015E




For further information:

For further information: David Beutel, Chairman, Rutter Inc., (709)
368-3174; Dan Herder, Corporate Secretary, Rutter Inc., (709) 368-3174


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