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Press release from Marketwire

McCoy Divests Parts & Service Subsidiary to Strengthen Its Focused Growth Strategy

Wednesday, February 02, 2011

McCoy Divests Parts & Service Subsidiary to Strengthen Its Focused Growth Strategy08:00 EST Wednesday, February 02, 2011EDMONTON, ALBERTA--(Marketwire - Feb. 2, 2011) -McCoy Corporation ("McCoy" or "the Corporation") (TSX:MCB) has sold its wholly-owned subsidiary,1527490 Alberta Ltd. (operating as "McCoy Parts & Service"), to Calgary-based Fleet Brake Parts & Service Limited. The transaction closed yesterday and is effective December 31, 2010. McCoy Parts & Service, part of the Corporation's Mobile Solutions segment, consists of parts and service centres located in Edmonton and Red Deer, Alberta; as well as retail parts operations in Grande Prairie, Alberta and Penticton, British Columbia. The division employs approximately 90 employees who are expected to become employees of Fleet Brake. "This is a strategic divestiture for McCoy," says President & CEO, Jim Rakievich. "The sale will allow us to focus on global expansion in the energy industry and grow our most profitable businesses in the Energy Products & Services and Mobile Solutions segments." The net cash proceeds from the sale of the Corporation's Parts & Service division, after payment of transaction expenses and taxes, are estimated at 4.2X multiple of 2010 EBITDA. These proceeds, along with McCoy's existing net cash position, will be used to support and invest in McCoy's strategic growth plans in the global energy industry."The Parts & Service division has been instrumental to McCoy's success for close to a century and the Corporation would like to acknowledge the employees for their contributions to McCoy. Mr. Shawn Johns, Vice President of Parts and Service will be leaving McCoy to join the purchaser as part of this transaction and will no longer be an officer of McCoy. I would also like to thank Shawn for his outstanding leadership and commitment to the Corporation over his 13 year tenure," added Mr. Rakievich. Mr. John Bzeta, President & CEO of Fleet Brake, is excited about the acquisition. "This is an opportunity that Fleet Brake has been wanting for years," said Mr. Bzeta. "We are looking forward to growing our business with the high quality employees and operations of McCoy Parts & Service." About McCoy McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas.Forward-Looking Information This news release and the website referenced therein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause McCoy's actual results and experience to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on forward-looking information that may be contained herein, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. McCoy undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. FOR FURTHER INFORMATION PLEASE CONTACT: Mr. Jim RakievichMcCoy CorporationPresident & Chief Executive Officer(780) 453-8451info@mccoyglobal.comwww.mccoyglobal.com