Empire Industries Completes Sale of Winnipeg and Welland Structural Steel Fabrication Operations

WINNIPEG, MANITOBA--(Marketwire - Jan. 3, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today announced it has completed the previously announced sale of its Empire Iron Works structural steel fabrication operations in Winnipeg and its Hopkins Steel Works facility in Welland, effective December 31, 2011. This sale to the Supreme Group, western Canada's largest steel fabrication company, was a cash transaction valued at approximately $3.8 million plus the value of selected working capital.

Empire continues to participate in the structural steel market, primarily through its Empire Iron Works facility in Edmonton and its Dynamic Structures facility in Port Coquitlam. Its steel fabrication businesses focus on fabricated steel markets where it has unique advantages, such as the oil sands market in Alberta through its joint venture with the Athabasca Chipewyan First Nation Business Group in Ft. McMurray. Empire also plans to introduce imported, high quality fabricated steel into the Alberta industrial market through its joint venture in China.

Proceeds of this transaction will be used to reduce bank debt.

About Empire Industries Ltd.

Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company also provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

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This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.