Contrans Corp. - Announcement

    WOODSTOCK, Ontario--March, 15 2002--Contrans Corp. announced today that it has entered into a letter of intent to purchase substantially all of the trucking assets of Tri-Line Expressways Ltd. from KPMG Inc., as interim receiver of the assets. These assets include the tractors and trailers used in the business, real property located in Alberta, Saskatchewan and Texas, related fixed assets, equipment, inventory and machinery and the name and goodwill associated with the business. In addition, prior to the completion of the transaction, Contrans may negotiate the retention of properties leased by Tri-Line in Western Canada and Quebec.
    The trucking business of Tri-Line is headquartered in Calgary, Alberta and provides a full range of flat bed and dry van transportation services in North America. The gross revenues of the trucking business of Tri-Line during the most recent fiscal year exceeded $80 million (Cdn.). It is Contrans' intention to retain the management, employees and owner-operators of Tri-Line to the extent necessary to service the retained business.
    The completion of the transaction is subject to finalizing the terms of an acceptable agreement of purchase and sale and obtaining court approval of the transaction, both of which are to take place as soon as reasonably possible. The purchase price for the assets will be paid in cash on the completion of the transaction, from the working capital of Contrans.
    Stan Dunford, the Chief Executive Officer of Contrans, stated that "the opportunity to acquire the assets and goodwill of Tri-Line will allow Contrans to expand its trucking network, particularly in Western Canada, thereby providing a broader range of services to its customers."