Empire Industries Settles Vendor Notes for $1 Million Gain

WINNIPEG, MANITOBA--(Marketwire - Jan. 3, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today announced it has settled the vendor notes payable to 3^rd Bros. Industries for $500,000, effective December 30, 2011. These notes were originally issued on August 31, 2006 as part of the consideration for the purchase of George Third & Son Ltd. The principal plus accrued interest payable on these notes as of December 30, 2011 was in excess of $1.5 million. This was a cash transaction, funded by the proceeds of the Company's most recent private placement of convertible debenture units.

The resulting gain of approximately $1.0 million will be recorded in the 2011 year-end financial statements.

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.

Reader Advisory

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.