Tri-Way Manufacturing Technologies Acquired By Gruppo Riello Sistemi

WINDSOR, Ontario, Nov. 16, 2005 -- Tri-Way Manufacturing Technologies Corp. announced today that Gruppo Riello Sistemi of Verona (Italy) has acquired 100% of the Canadian-based machine tool supplier. In a statement, Gruppo Riello Sistemi termed the acquisition another milestone in its process of internationalization, consistent with its previous acquisitions of Mandelli Sistemi in Piacenza (Italy), Burkhardt+Weber in Stuttgart (Germany) and the setup of a totally new Gruppo Riello Sistemi CHINA in Shanghai.

Tri-Way Manufacturing Technologies Corp. with locations in Windsor, Ontario and Troy, Michigan, is a medium-sized machine tool company with a long tradition in supplying equipment for manufacturing automotive components. The three major American automotive companies: General Motors, Ford and DaimlerChrysler are among its many customers along with the most prestigious parts suppliers in the sector.

One of the Tri-Way's strong technical capabilities is the complete machining of automotive and diesel connecting rods that include its patented "cracking process." Currently there are in excess of 25 million connecting rods manufactured each year on equipment provided by Tri-Way.

Mr. Renato Pegoraro, previously Sales Director of Riello Macchine (Verona) and an expert of the American market, has been selected to run the new North American operation.

Andrea Riello, President and CEO, Gruppo Riello Sistemi, affirms: "This acquisition is part of the industrial plan that was started back in 1992 with the scope of reaching certain volumes and at the same time of successfully competing on the global market. The industrial plan is developed under three guiding principles: internal growth, product innovation and efficient organization.

"Particular attention has always been paid and resources have been dedicated to monitoring external business opportunities," he continues. "After having extended the product range and reached the right dimensions to face the global market, with the acquisition of Tri-Way we are now ready to fulfill the needs of such a demanding and technologically advanced market as that of North America. Our efficient sales network is now present with appropriate structures in the major product consumption areas: Mediterranean Europe, German speaking Europe, China and North America."

Tri-Way Manufacturing Technologies Corp., established in 1977, has been providing manufacturing solutions to the automobile and agricultural industries. The company is one of the very few privately held North American companies in the machine tool industry. The company is today a global supplier of precision, custom designed metal removal equipment and fully integrated manufacturing systems that produce a wide variety of powertrain components for the major automakers as well as tier automotive suppliers. Some of the main customers are General Motors, Ford, DaimlerChrysler, American Axle, Meridian, Caterpillar, International Truck & Engine, Isuzu, Federal Mogul, Dana, Visteon, Linamar, Toral Cast, Honda and Saturn.

Mr. James Campbell and Mr. John Cowie, former owners of Tri-Way, stated that the new organization is capable of providing a wide variety of manufacturing solutions to our customers on a global basis. "This is truly a 'win-win-win' situation," said Mr. Campbell. "Our employees, our customers, and our suppliers for the new company all benefit from this acquisition." Mr. Campbell and Mr. Cowie will remain with the company as Vice-Presidents.

Gruppo Riello Sistemi, set up in 1963 in Minerbe (Verona), where the first factory is located, is one of the major European companies in the sector of capital goods, specialized in the production of horizontal machining centers and special applications. In the last 10 years, it has recorded an average annual increase of 26.3% on the turnover and, with its 500 employees, forecasts to close 2005 with a turnover of over 100 million Euro and an order backlog that is 25% higher than that of the previous year. Every year 4% of the entire turnover is allocated for research and development.