Gesco Industries Inc. Announces Sale of its Mat King Shares

Toronto, Friday, May 20 th, 2005 - Gesco Industries Inc. is pleased to announce the completion of the sale of its shares in the Mat King to its current President, Alan Slavner.

“Since the inception of the partnership, some 3 ½ years ago, Mat King has advanced and developed considerably” says Ed duDomaine, President and CEO of Gesco Industries Inc. “The divestiture of our shares will not disrupt in any way the arms length working association between our two companies or the market services we mutually provide to our customers.” He went on to say “This sale agreement affords Mr. Slavner the opportunity to personally lead and further develop the company he founded some 21 years ago. We wish him continued success.”

Gesco Industries Inc. (Shnier Co.) is a leading Canadian national total floor covering solutions company. It is committed to the servicing of a wide variety of customers within multiple channels, offering the appropriate value add products, programs and services, required to keep each client a step ahead. All Shnier associates remain fully committed to innovation, flexibility and overall greater ease by which to do business.

The Mat King is a Canadian company, which is primarily an importer and converter of flooring mats, rugs, and assorted flooring accessory products, sold through multiple retail channels across Canada.

ABOUT SHNIER CO

Shnier Co. (a division of Gesco Industries Inc.) is Canada’s leading National Floor covering Solutions Company. Founded in 1938, the company sells and services over 4,000 residential and commercial flooring customers, offering value-add products, programs and services. Shnier Co. is headquartered in Brampton, Ontario, in a state-of-the-art, 255,000 square foot central logistics centre. G. E. Shnier’s national operations include five warehouse, sales office and/or showroom facilities across Canada.

Contact: Media or Investors, Ed duDomaine, President 1-800-970-2000, or [email protected]