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Rutter Announces Intention to Sell its Consulting Engineering Business

^{Published on 2011-02-24 05:50:38 - Market Wire}
 

ST. JOHN'S, NL, Feb. 24 /CNW/ - Rutter Inc. (TSX: RUT) today announced its intention to dispose of its remaining consulting engineering operations, based in Clarenville, Newfoundland and Labrador, and that it has reached a tentative agreement with a buyer, subject to certain conditions including the buyer obtaining financing to complete the transaction.

The cash purchase price of $800,000 plus a working capital adjustment is due upon closing of the transaction.

Fraser Edison, President and CEO of Rutter Inc., says "after selling the Controls & Automation business in 2009, we have spent considerable time and effort in reviewing our place in the engineering marketplace and have concluded that selling the business at this time is appropriate.  The consulting engineering operation is a relatively small piece of Rutter's total business with annual revenues of approximately $2,000,000.  This sale will allow the Company to further streamline operations and place more emphasis on the technology and Electronic Manufacturing Services (EMS) operations."

About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information go to: [ http://www.rutter.ca ]

Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.