Closing of the Arrangement between GL&V, its Shareholders and FLSmidth & Co. A/S

    - The new corporation GLV Inc., consisting of the Water Treatment Group,
      the Pulp and Paper Group and the Manufacturing unit, officially starts
      its operations and its shares will be traded on the TSX at the opening
      of the markets on August 13, 2007.

    - Shareholders are entitled to receive one New GLV share for each share
      held in the former GL&V, along with a per-share consideration of $33 in

    - Management confirms that the value of a New GLV share for distribution
      purposes is estimated at $8.82 and the value of the dividend and the
      reduction of capital for tax purposes are respectively estimated at
      $6.36 and $2.46 per Class A subordinate voting share and at $8.44 and
      $0.38 per Class B multiple voting share of GL&V.

    MONTREAL, Aug. 10 /CNW Telbec/ - (Note: All amounts are in Canadian
dollars unless otherwise indicated.) Management of Groupe Laperrière &
Verreault Inc. ("GL&V") and the new corporation GLV Inc. ("New GLV" or "the
Company") is pleased to announce, following the issuance of a Certificate of
Amendment confirming the Amendment, the closing, effective today, of the
Arrangement between GL&V, its shareholders and a subsidiary of the Danish
company FLSmidth & Co. A/S ("FLS"). The principal terms of the transaction
were as follows:

    - GL&V transferred its Water Treatment Group, its Pulp and Paper Group
      and its Manufacturing unit to New GLV, and the shares will be owned by
      former GL&V's shareholders.

    - A Canadian subsidiary of FLS acquired all outstanding Class A
      subordinate voting shares and Class B multiple voting shares of GL&V,
      thereby becoming the effective owner of former GL&V's Process Group for
      a cash consideration equivalent to $33 per GL&V share outstanding, plus
      the assumption of GL&V's net debt, with the exception of a net debt of
      $50 M to be assumed by New GLV. Consequently, each shareholder of GL&V
      will receive a per-share consideration of $33 in cash and one share of
      New GLV for each share held.

    The process of distributing the New GLV shares and the cash consideration
    was initiated upon the closing of the transaction, with the result that
    the transfer agent will issue the shares and cash payments, subject to
    applicable withholding for non-Canadian shareholders, within the
    following days to shareholders who delivered the duly completed Letter of
    Transmittal along with their GL&V share certificates.

    At the opening of markets on August 13, 2007, New GLV's stock will be
    listed and trading on the TSX under the ticker symbols LVG.A and LVG.B
    replacing the shares of the former GL&V which, at that time, will be
    delisted from the TSX.

    Furthermore, management confirms that the taxable dividend for the
purposes of the Income Tax Act (the "Act"), following the distribution of the
New GLV shares, estimated at $6.36 per Class A subordinate voting share and at
$8.44 per Class B multiple voting share of GL&V have been duly designated as
eligible dividends as defined in the Act. For more information regarding
shareholders' tax considerations, please refer to the Information Circular
which has been distributed to GL&V's shareholders and filed on SEDAR
( with respect to the Special General Meeting of Shareholders
held on July 27, 2007, notably, to approve the Arrangement.
    Management also wishes to inform investors that combined carve-out results
for combined activities of New GLV for the first quarter ended June 30, 2007
will be disclosed on August 16, 2007.

    Achievement of a significant return on investment and beginning of a new
    era of development and creation of shareholder value

    Laurent Verreault, Chairman of the Board and Chief Executive Officer, said
he is very pleased with the outcome of this value-maximizing transaction for
shareholders. "As they judged themselves by massively voting in favour, this
transaction offers shareholders two major advantages as it enables them to
achieve an immediate and significant return on the investments made by GL&V in
the past to build the value of the Process Group, while allowing them to
continue participating in New GLV's potential growth and future creation of
value. At GL&V, we see this transition as the continuity of more than 30 years
of dynamic growth and operational excellence. We also see it as the beginning
of a new growth era, at a time when fundamental changes are under way or
emerging in our key markets, thereby creating significant opportunities for
companies capable of taking advantage of them."
    Richard Verreault, President and Chief Operating Officer, added that the
still fragmented industrial and domestic water market holds considerable
potential for the Water Treatment Group, which has recently acquired new
technologies and expanded its global positioning. This group has drawn up an
ambitious business plan and is actively pursuing various projects in order to
more than double its revenues within the next five to seven years. It also
aims to raise its profit margins by fully leveraging the synergies arising
from its latest business acquisitions and by enhancing its technological
offering in order to position itself as a more comprehensive provider of
value-added solutions, especially for the treatment of domestic and industrial
wastewater and the screening of large-volume water intakes. For its part, the
Pulp and Paper Group has demonstrated for over 30 years an exceptional ability
to position itself proactively and profitably in a market undergoing a major
transformation. This group has taken the lead and remains a leader in the
consolidation of its industry. Furthermore, it has always been a reliable
generator of profits and cash flows, despite the fluctuations experienced by
the global pulp and paper industry in the last few decades. While securing a
dominant position in the aftermarket in North America and Europe, it has
recently acquired cutting-edge technologies designed to meet new needs in the
worldwide pulp and paper industry, including in emerging regions.
    "We will make New GLV an influential player on the international scene as
a provider of targeted industrial and municipal solutions, with special
expertise in water treatment technologies. We will replicate the same
strategies that have proven successful for the former GL&V, namely to achieve
sustained growth through the acquisition and efficient integration of
businesses, international development and the focus on value-added operations
and products, and to optimize our profitability by controlling our expenses
and maintaining a profitable and flexible cost structure, in part through
manufacturing outsourcing," Richard Verreault added.

    Start-up revenues of over $500 M and strong financial position

    Marc Barbeau, Executive Vice-President and Chief Financial Officer,
indicated that based on its order backlog, market conditions and the
acquisitions of the past year, New GLV is expected to achieve revenues of $500
to $545 million during its first full year of operation. It undertakes its
operations with a solidly established worldwide business, close to
1,500 qualified employees and an excellent portfolio of technologies meeting
new market needs. It also benefits from a strong financial position to pursue
its operations and development projects, including shareholders' equity of
approximately $150 million and total net debt of approximately $52 million,
which represents a total net debt to invested capital ratio of only 26%.
Furthermore, it has recently obtained a credit facility of $175 million.
    "As we have disclosed in our previous communications, we intend to build
our company driven by a long-term vision. In other words, all our business
decisions will be motivated by our commitment to maximize our groups'
long-term value in the best interests of our shareholders, which could entail
slower growth in our groups' short-term profitability. First, we are building
our Water Treatment Group to position it as a world leader, and such an
expansion and consolidation effort could put pressure on its profit margins
and create some volatility in its earnings in upcoming quarters. As for our
Pulp and Paper Group, it lately adopted a more aggressive strategy to position
itself in certain key markets with new-generation technologies. This recently
allowed it to garner large-scale contracts that will provide it with an
excellent international showcase for its future growth, but for which profit
margins are lower than for its other operations," added Marc Barbeau.

    About GLV Inc.

    GLV Inc. was founded on May 15, 2007 to carry on part of the commercial
activities of GL&V. GLV consists of two principal business segments. Its Water
Treatment Group specializes in the design and marketing of solutions for the
treatment of municipal and industrial wastewater and water used in various
industrial processes, and also offers water intake screening solutions for
power stations and desalination plants. Its Pulp and Paper Group specializes
in the design and marketing of equipment used in various stages of pulp and
paper production, notably chemical pulping, pulp preparation and sheet
formation, and is a recognized leader in rebuilding, upgrading and
optimization services for existing equipment, as well as the sale of
replacement parts. Finally, a Manufacturing unit specializes in the production
of large custom-made parts for external customers involved mainly in the pulp
and paper and energy sectors, as well as for the Pulp and Paper Group. GLV is
present in some 30 countries and has close to 1,500 employees.

    Forward-Looking Statements

    Certain statements that describe GLV Inc.'s objectives, projections,
estimates, expectations or forecasts may constitute forward-looking statements
within the meaning of securities legislation. Management would like to point
out that, by their very nature, forward-looking statements involve a number of
risks and uncertainties such that GLV's actual and future results could differ
materially from those indicated. Factors of uncertainty and risk that might
result in such differences include trends in the demand for GLV's products and
cost of its raw materials, fluctuations in the value of various currencies,
pressures exerted on prices by the competition, compliance with environmental
legislation and general changes in economic conditions. There can be no
assurance as to the materialization of the results, performance or
achievements as expressed in or underlying the forward-looking statements.
Unless required to do so pursuant to applicable securities legislation,
management assumes no obligation as to the updating or revision of the
forward-looking statements as a result of new information, future events or
other changes.

             Thursday, August 16, 2007 at 2:00 PM (Montreal time)

    To participate, please dial 1-800-732-9303 a few minutes before the start
    of the call. For those unable to participate, a taped re-broadcast will
    be available Thursday, August 16, 2007 from 4:00 p.m. until midnight
    Thursday, August 23, 2007, by dialing 1-877-289-8525; access
    AT WWW.GLV.COM. Members of the media are invited to listen in.

For further information:

For further information: Investors: Marc Barbeau, CA, Vice-President and
Chief Financial Officer, (514) 284-2224;; Media: Amély Tremblay,
Morin Relations Publiques, (514) 289-8688, ext. 226

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