October 24, 2008

Improvements at Elkhart Plant Add to Indalex Investment in Midwest Operations

Indalex Inc. is investing $1.2 million to improve material flow at its Elkhart, Indiana aluminum extrusion plant, bringing total investment in Midwest manufacturing operations to more than $26 million this year.

The improvement project at Elkhart, part of the company's Manufacturing Improvement Strategy, will be completed early in the fourth quarter. Indalex has invested more than $26 million in the state of Indiana in the last year. A major expansion of its Connersville, IN plant and installation of a new 6000-ton UBE extrusion press, the centerpiece of the automated extrusion system being installed at the facility, is the largest in the company's North American manufacturing network. The Connersville expansion will be completed later this year and will add 47 million pounds of manufacturing capacity.

"The investments at Elkhart and Connersville are part of our ongoing Manufacturing Improvement Strategy. We have invested more than $200 million in improvements during the past decade resulting in increased capacity with eight fewer manufacturing plants. We are fortunate to have the capacity and capabilities to align our production capacity with lower market demand in the short term, yet be prepared to expand capacity when market demand rebounds," said Tim Stubbs, President and Chief Executive Officer, Indalex Inc.

Indalex is the second largest producer of soft alloy aluminum extrusion products in North America. The Company's aluminum extrusion products are widely used throughout industrial, commercial, and residential applications and are customized to meet specific end-user requirements. Indalex operates 11 extrusion facilities, 31 extrusion presses with circle sizes up to 20 inches, a variety of fabrication and close tolerance capabilities, two anodizing operations, two billet casting facilities, and six electrostatic paint lines, including powder coat capability.