Samuel Manu-Tech to Purchase Dofasco Stainless Steel Business

Samuel Manu-Tech Inc. today announced the signing of a definitive purchase agreement to acquire the outstanding voting shares of Dofasco Elizabethtown Inc. ("Elizabethtown").

Elizabethtown is a leading manufacturer of stainless steel laser welded tubular products located in Elizabethtown, Kentucky. "Combined with our flagship Associated Tube Industries facility located in Markham, Ontario and our new greenfield site, Tubos Samuel de Mexico located in Saltillo, Mexico, this acquisition is an important step in broadening Samuel's existing stainless steel tubular products capability and geographic reach throughout North America and Mexico," said Mark Samuel, Samuel's Chairman and Chief Executive Officer. Samuel will operate Elizabethtown within the Samuel Tube Group under the name Associated Tube USA Inc.

The purchase price is U.S. $28.5 million subject to certain adjustments for working capital items. Sales of Elizabethtown for the first six months of 2007 were approximately U.S. $16 million. Management expects this acquisition to be accretive to earnings in its first full year of operations. Funding for the acquisition will come from Samuel's existing revolving credit facilities. The transaction is subject to customary closing conditions and is expected to close in the next few days.