1314385 Ontario Limited Announces Extension Of Bid To Acquire All Issued And Outstanding Common Shares Of Trailmobile

    MISSISSAUGA, Ontario--April 15, 2002--Trailmobile Canada Limited ("TCL" or the "Company") wishes to advise that its controlling shareholder, 1314385 Ontario Limited (the "Offeror"), is extending the time for shareholders of TCL to deposit their shares to the cash offer (the "Offer") to purchase all of the outstanding common shares of the Company at a price per share of $0.10. The Offer, which was originally announced on February 1, 2002, and which expired on April 12, 2002 at 4:00 p.m. (Toronto time), is being extended to May 3, 2002 at 4:00 p.m. (Toronto time).
    The Offeror has also advised that it is waiving the condition of the Offer that at least 90.1% of the common shares of the Company not already held by the Offeror be tendered to the Offer. As of 4:00 p.m. on April 12, 2002, 18,550,785 common shares of the 21,479,098 common shares not held by the Offeror had been tendered to the Offer. These shares will be taken up and paid for by the Offeror within the time prescribed by the Offer. As a result of this decision, the Offeror increased its shareholdings in Trailmobile to 53,251,687 common shares representing approximately 94.79% of the current issued and outstanding common shares of Trailmobile. The Offeror intends to take-up and pay for all additional shares of Trailmobile tendered to the Offer during the extension period and therefore expects to increase its share position in the near future.
    The Offeror also wishes to advise that it will be making an offer through the facilities of the Toronto Stock Exchange to acquire up to 800,000 common shares at the Offer price of $0.10 per share commencing April 18, 2002 in compliance with section 94(3) of the Securities Act (Ontario).
    As previously advised, in a bulletin published by the Toronto Stock Exchange (the "TSE") on December 17, 2001, the TSE advised that it was reviewing the eligibility for continued listing on the TSE of the common shares of the Company (the "Review") and granted the Company 120 days to comply with all the requirements for continued listing. The Review is based upon the "financial condition and/or operating results" of the Company as well as on the basis that the "public distribution, price, or trading activity of the company's securities has been so reduced as to not warrant continued listing". Now that the Offeror has taken up 18,550,785 common shares under the Offer, the Company no longer meets the listing requirements on the TSE. However, the TSE has agreed to continue listing the common shares of the Company on the TSE to facilitate the acquisition of up to 800,000 common shares by the Offeror pending the expiry of the Offer and the expiry of the Review.

    Trailmobile Canada Limited manufactures dry-freight trailers for commercial trucking customers in Canada and the United States. The company is majority owned by Chicago-based Trailmobile Corporation. Trailmobile is one of North America's largest trailer manufacturers, with an extensive sales and distribution network in both the USA and Canada. Trailmobile Canada Limited's head office and manufacturing facility are located in Mississauga, Ontario.