SHERMAG SIGNS DISTRIBUTION AGREEMENT WITH THE RUG STUDIO
Sherbrooke, Québec, March 13, 2007
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Shermag Inc. (TSX: SMG) today announced that it is to become the exclusive distributor of The Rug Studio products throughout North America.
The Rug Studio is a leading contemporary, fully customizable area rug program, manufactured by The Lanart Rug Company of St-Jean-sur-Richelieu, Québec. Designed specifically for furniture retailers, The Rug Studio’s unique display system requires minimal retail floor space and provides consumers with a wide selection of customized area rugs.
“Shermag believes that consumers will appreciate purchasing their area rugs at the same time and store as their furniture,” commented Mr. Jeff Casselman, President and CEO of Shermag. “This new partnership with The Rug Studio underlines the importance of providing convenience, innovation and choice in today’s highly competitive market. The Rug Studio’s contemporary products are an excellent complement to Shermag’s furniture collections. Area rugs represent a significant portion of the retail furnishings market and we are delighted to be able to offer the The Rug Studio’s unique designs and flexibility to our retail partners and their customers.”
Derek Galbraith, President of The Rug Studio added: “The Rug Studio’s strength is quality craftsmanship and superior design. By partnering with Shermag, we can focus on design and manufacturing, while Shermag markets the program through its existing sales force and retail network throughout North America. It is an excellent combination.”
Company Profiles
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Shermag Inc. (SMG), headquartered in Sherbrooke, Québec, is a leader in the design, production, marketing and distribution of high-quality residential furniture. The Company employs nearly 1300 people and is a vertically integrated manufacturer and importer with its own cutting rights, sawmill, veneer plant, manufacturing operations and global sourcing division.
The Lanart Rug Company, situated in St-Jean-sur-Richelieu, Québec, is the premiere source for high quality contemporary machine made and hand made area rugs. Employing over 100 people, Lanart designs and manufactures The Rug Studio for furniture retailers.
Disclaimer
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This news release contains forward-looking statements about the Company’s operations, objectives, strategies, financial situation and performance. These statements are made based on assumptions and management’s best estimates with regard to future events. However, the business of the Company is subject to risks and uncertainties that could cause actual results to differ from expected results. Important factors that could cause such differences are changes in pricing pressure being exerted by competitors, particularly Asian-based companies, significant movement in the Canadian/US dollar exchange rate, and unanticipated problems in implementing the Company’s Business Transformation Plan. This is not an exhaustive list. A broader discussion of risk factors that could affect future performance can be found in the Company’s Annual MD&A and Annual Information Form, filed with Canadian securities regulatory authorities. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information:
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Investor Relations, Maison Brison, Rick Leckner, (514) 731-0000
Shermag Inc., Jeff Casselman, President and CEO, (819) 566-1515