Winalta Inc. Announces the Acquisition of Envirocore's Construction Assets, a Division of IROC Energy Services Partnership

    CALGARY, Feb. 26 /CNW/ - Winalta Inc. announced today the signing of an
agreement to acquire the assets of Envirocore, a division of IROC Energy
Services Partnership. Located in Fort St John, BC, Envirocore operates as a
construction company primarily in lease and road construction for the oil and
gas industry. The assets include all lease construction associated equipment
and inventories currently operated by IROC's Envirocore division. Winalta has
entered into an agreement to retain certain key Envirocore employees and has
offered employment contracts to all current Envirocore employees.
    "I don't believe I have seen a more opportune time to expand by
acquisition in the oilfield services sector. Though these are challenging
economic times, northeastern British Columbia is an area that has maintained
reasonable drilling activity and is an important strategic region in which we
see further expansion and growth opportunities. Discipline, patience and a
redeployment of capital from the home division into the oilfield service
industry will be Winalta's strategy going forward", says Artie T. Kos,
President and CEO.
    The $4.8 Million purchase price consists of $3.3 Million cash and $1.5
million held by IROC as a vendor take back to be repaid over 2 years.
    In connection with the financing of the Envirocore asset acquisition,
Winalta inc. has secured a bridge loan from Kos Corp Investments Ltd., a
company owned by Artie Kos, a director and President and Chief Executive
Officer of Winalta Inc., in the amount of $1 Million. The terms of this
related party transaction have been reviewed and approved by the independent
directors of Winalta Inc. The terms of the bridge facility provided by Kos
Corp Investments Ltd. are based on terms customary for bridge loan facilities
of this type and include interest at 12% per annum and a $10,000 transaction
fee. The bridge loan has a 6 month term. The bridge loan was necessary as
negotiations for the placement of permanent debt financing have taken longer
than expected to complete due to tightening in the credit markets. The bridge
loan will be repaid upon Winalta securing such permanent debt financing.
Additional funds will come from a credit facility secured by a third party
lender, advances under which will be available prior to closing of this

    Winalta Inc. is a fully integrated company with two main divisions:
Industrial and Homes. The Industrial Division manufactures and leases
industrial accommodations, provides construction services that include
excavating, aggregate trucking and paving. The Homes Division manufactures CSA
approved homes, develops land and builds communities.

    Winalta Inc. shares trade on the TSX Venture Exchange under the symbol

    %SEDAR: 00005154E

For further information:

For further information: Business Contact: Artie T. Kos, President &
CEO, Winalta Inc.,, Tel: (780) 960-6900, Fax: (780)
962-9523,; Austin Fraser, VP Corporate Development and
Investor Relations, Tel: (403) 475-4698

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