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Gold/Mining/Energy : Derlan (T.DRL) -- Ignore unavailable to you. Want to Upgrade?

To: jim who wrote (301)	10/22/1999 3:03:00 PM
From: Stephen O	Read Replies (1) \| Respond to of 319

Derlan Initiatives Will Create Focused Aerospace Leader 10/22/99 14:34 NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: DERLAN INDUSTRIES LIMITED TSE SYMBOL: DRL OCTOBER 22, 1999 Derlan Initiatives Will Create Focused Aerospace Leader TORONTO, ONTARIO--Derlan Industries Limited today announced two initiatives which will sharpen the focus of its aerospace group, creating the world's leading independent manufacturer of gears and transmissions for military helicopters. The Company has signed a letter of intent to acquire substantially all the assets of Boeing Precision Gear, Inc. of Bedford Park, Illinois. Boeing Precision Gear manufactures, assembles, tests and provides maintenance and overhaul on drive systems for the AH-64 Apache, CH-46 Sea Knight, CH-47 Chinook helicopters as well as the F-22 Raptor fighter. Derlan has also decided to divest its D-Velco Manufacturing of Arizona, Inc. subsidiary and will begin accounting for it as a discontinued operation. D-Velco is a manufacturer of large and complex aerospace components built to customer specifications. Negotiations for the sale of D-Velco are already underway. "We are creating a single focus for our aerospace group with the critical mass to be a significant player in the worldwide aerospace gears and transmission market," said Dermot Coughlan, Chairman and Chief Executive Officer of Derlan. "We expect this to increase the earnings power and enhance the value of our aerospace group." Combined, the acquisition and divestiture will further increase Derlan's net cash position and continue to strengthen its balance sheet. Both transactions would be subject to regulatory review. Boeing Precision Gear has a highly skilled workforce and a strong working relationship with Derlan Aerospace Canada of Milton, Ont. In May, Derlan announced the signing of a definitive agreement to develop a new generation of drive systems for the AH-64 Apache helicopter in concert with the Mesa Arizona facility of The Boeing Company. The Board of Directors of Derlan continue to work with their advisors to maximize shareholder value and developments will be announced as appropriate. Management and its advisors believe these two transactions will enhance shareholder value under all of the scenarios currently under review. Derlan is an industrial corporation, manufacturing products for the aerospace and pump industries. The Company has operations in Canada, the United States, Mexico and Germany. Its shares are listed on the Toronto Stock Exchange under the symbol DRL. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Derlan Industries Limited J. David Williamson President and Chief Operating Officer (416) 364-5852 INDUSTRY: CGL