Divcom refinances its U.S. operations


    MONTREAL, Sept. 16 /CNW Telbec/ - Divcom Lighting Inc. (TSX: DVQ)
("Divcom" or the "Company") announced today that it has obtained an operating
facility of US$2.5 million for its U.S. operations from Greenfield Commercial
Credit LLC. The Company will use this new operating facility to repay its
existing debt to its U.S. bank, and to meet working capital requirements.
    For the past two quarters Divcom has operated its U.S. companies as
discontinued operations with a view to selling these assets. Under the
leadership of Mr. Joey Khatri, and with the advice of an international
management consulting firm, the Company consolidated its U.S. activities,
significantly reduced overhead costs, and reduced bank debt from a high of
US$4.4 million to the current total of less than US$800,000, mainly by
reducing inventory.
    In light of this successful restructuring, Divcom has decided that it
will continue to operate its Adjusta-Post subsidiary normally while
discontinuing the operations of all of its other operating subsidiaries in the
U.S., either by amalgamation or by abandonment of assets. Divcom notes that
Adjusta-Post currently has an order backlog in excess of US$1 million.
    Divcom is also pleased to announce that Mr. Joey Khatri will assume the
post of chief operating officer of the Company's U.S. operations, effective

    About Divcom

    Divcom is a leading North American manufacturer of architecturally
designed energy-efficient and "eco-friendly" lighting products for retail and
commercial markets across Canada and the United States. The Company's strategy
is to seize new business opportunities in the lighting industry and constantly
improve its energy efficient product lines. Divcom's products are distributed
through its extensive North American marketing network which includes more
than 2,000 distributors and agents. The Company's products are used for
residential houses, public roads and tunnels, as well as commercial,
industrial and custom-made lighting projects. For further information, please
visit www.divcomlighting.com

    Forward-Looking Statements

    Certain statements made in this press release and other statements
regarding our strategy, future operations, financial position, future
revenues, projected costs, prospects, plans and objectives other than
statements of historical facts are forward-looking statements. Such statements
are usually preceded by words such as "will", or "expects". We cannot
guarantee that we actually will achieve the results, plans, intentions or
expectations disclosed in our forward-looking statements and you should not
place undue reliance on them. There are a number of important factors that
could cause our actual results to differ materially from those indicated or
implied by forward-looking statements including, but not limited to, the
impact of any special items or of any dispositions, monetization, mergers,
acquisitions, business combinations or other transactions that may be
announced or that may occur after the date hereof. Risks that could cause
actual results to differ materially from those projected include, but are not
limited to, the effect of general economic conditions, decreases in demand for
the Company's products, increases in costs of raw materials, changes in the
relative value of the Canadian and U.S. currencies, and fluctuations in
selling prices. For a description of material risk factors, please refer to
the Company's annual information form and to our periodic filings with
securities regulatory authorities, which are available on SEDAR at
www.sedar.com. These factors should be read as being applicable to all related
forward-looking statements wherever they appear in this press release. The
information in this press release, including any forward-looking statements,
is provided as of the date of this release and should not be relied upon as
representing our estimates as of any subsequent date. We do not assume any
obligation to update or revise any forward-looking statements except as
required by law, whether as a result of new information, future events or
    %SEDAR: 00011838E

For further information:

For further information: Aslam Khatri, President and CEO, Divcom
Lighting Inc., (514) 693-2117

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