Shermag Inc. announces receipt of proposal - Clarke proposes to take Shermag private

    SHERBROOKE, QC, Feb. 7 /CNW Telbec/ - The independent members of the
Board of Directors of Shermag Inc. (TSX: SMG) ("Shermag" or "the Company")
have received a letter from Clarke Inc. ("Clarke") expressing an interest in
privatizing the Company at a price to be negotiated by Clarke and the
independent members of the Shermag Board. Clarke has indicated that the price
it is willing to pay is below Shermag's current trading price, and that it
intends to approach other major shareholders to invite them to participate in
the privatization.
    The Board of Directors has formed an Independent Committee to review the
Clarke proposal and any other offer that may be submitted by any other party,
and to negotiate the terms of any such offer in the best interests of Shermag
and its shareholders.
    Additional information relating to the Clarke proposal will be made
public at such time as there is agreement on the final terms. There can be no
assurance however that a transaction with Clarke or any other party will be
entered into, and no timetable has been set for the completion of any such


    Shermag Inc. (SMG), headquartered in Sherbrooke, Québec, is a leader in
the design, production, marketing and distribution of high-quality residential
furniture. The Company is a vertically integrated manufacturer and importer
with its own cutting rights, sawmill, manufacturing operations and global
sourcing division. It currently employs approximately 1,050 people; following
the February 2008 plant closures, Shermag will have 730 employees.

For further information:

For further information: Shermag Inc., (819) 566-1515

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