Thomas Equipment Considers Sale of All Assets

October 16, 2006 • Thomas Equipment, Inc., Centreville, New Brunswick, announced that it has expanded its view of possible restructuring alternatives for its businesses and assets. In addition to the company's consideration of a sale of the Thomas 2004 assets, the board is also considering the sale of all assets of the company in a single transaction. Thomas Equipment and its representatives are in discussions with various parties concerning a number of alternative transaction structures.

Earlier this year, Thomas Equipment filed for court-supervised restructuring for wholly owned subsidiary Thomas Equipment 2004, in which it laid off 141 employees. Thomas 2004 restructuring was designed to provide Thomas Equipment with appropriate financial resources to address short-term needs and successfully execute on longer-term strategic opportunities. More recently, wholly owned subsidiary Pneutech, Inc. also filed for court-supervised restructuring and successfully refinanced its existing credit facility with a larger $15 million credit facility provided by Greystone Business Credit II, LLC.