HÉROUX-DEVTEK ANNOUNCES AGREEMENT IN PRINCIPLE TO RENEW AND INCREASE ITS CREDIT FACILITIES

LONGUEUIL, QC, Jan. 26 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced that, subsequent to its third fiscal quarter ended December 31, 2010, it has reached an agreement in principle with a syndicate of banks to renew and increase its Credit Facilities (the "Facilities"). Under the terms of the agreement in principle, the Facilities will be increased from $125 million to $150 million, for a period of five years. In addition, subject to lenders' consent, the Facilities could be increased by an additional amount of $75 million.

These Facilities will be used for working capital, capital expenditures and other general corporate purposes of Héroux-Devtek Inc. and its subsidiaries, including acquisitions. These Facilities will be secured by all assets of the Company and its subsidiaries, and will be subject to certain restrictive covenants and corporate guarantees granted by the Company and its subsidiaries.

Management anticipates closing the agreement successfully before the end of the current fiscal year, on or before March 31, 2011. Existing facilities mature on October 4, 2011.

Profile
Héroux-Devtek Inc. (TSX: HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair and overhaul of related systems and components. Héroux-Devtek Inc. supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 70% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and St-Hubert); Kitchener and Toronto, Ontario; Arlington, Texas; as well as Springfield, Cleveland and Cincinnati, Ohio.

Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

SOURCE HEROUX-DEVTEK INC.

For further information:

Héroux-Devtek Inc.
Gilles Labbé
President and Chief Executive Officer
Tel.: (450) 679-3330

MaisonBrison
Martin Goulet, CFA
Tel.: (514) 731-0000

Profil de l'entreprise

HEROUX-DEVTEK INC.

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