Mr. Paul Riganelli reports

EXCO TECHNOLOGIES LIMITED - RESULTS FOR SECOND QUARTER ENDED MARCH 31, 2014

Exco Technologies Ltd. has released the results for its second quarter ended March 31, 2014. In addition, the company announced the quarterly dividend of five cents per common share which will be paid on June 27, 2014, to shareholders of record on June 13, 2014. The dividend is an eligible dividend in accordance with the Income Tax Act of Canada.

                                  FINANCIAL HIGHLIGHTS
                      (in thousands of dollars except per-share amounts)          

                                        Three months ended March 31, Six months ended March 31,
                                                  2014         2013          2014         2013

Sales                                          $82,437      $59,581      $146,382     $118,267
Net income                                       7,453        5,545        14,193       11,332
Basic earnings per share                         $0.18        $0.14         $0.34        $0.28
Diluted earnings per share                       $0.18        $0.14         $0.34        $0.28
Net income excluding non-recurring
ALC due diligence and closing costs              7,844        5,545        14,584       11,332
Basic earnings per share excluding
non-recurring ALC due diligence
and closing costs                                $0.19        $0.14         $0.35        $0.28
Diluted earnings per share excluding
non-recurring ALC due diligence
and closing costs                                $0.19        $0.14         $0.35        $0.28

Consolidated sales for the second quarter ended March 31, 2014, were $82.4-million -- an increase of $22.9-million or 38 per cent compared with last year. Year-to-date consolidated sales were $146.4-million -- an increase of $28.1-million or 24 per cent over last year. The automotive solutions segment is primarily responsible for this significant increase with sales of $42.6-million in the second quarter and $67.6-million year to date -- increases of $20.1-million or 89 per cent for the quarter and $22.7-million or 50 per cent year to date. March sales from Automotive Leather Company Group (Pty.) Ltd. (ALC), which was acquired by Exco on March 1, 2014, accounted for $14.4-million of this increase. The other businesses in this segment (Polytech, Polydesign and Neocon) also experienced strong growth in both the quarter (25 per cent) and year to date (18 per cent) as North American sales were sustained by strong vehicle unit production as well as new product launches, and Polydesign's European sales increased substantially over prior year as the smooth launch of new products continued to exceed the impact of relatively anemic European vehicle unit sales.

The casting and extrusion segment reported strong sales of $39.9-million for the second quarter and $78.8-million year to date -- increases of $2.8-million or 8 per cent for the quarter and $5.4-million or 7 per cent year to date. The extrusion group increased sales in the current quarter and year to date by 22 per cent and 18 per cent, respectively, with overall market conditions improving in North America, and both Exco Colombia and Texas now growing market share in their respective regional markets after having achieved key quality and delivery benchmarks.

Consolidated net income for the second quarter was $7.4-million or 18 cents per share, compared with $5.5-million or 14 cents per share last year -- an increase of 34 per cent. Year-to-date consolidated net income was $14.2-million or 34 cents per share, compared with $11.3-million or 28 cents per share last year. Included in the current quarter and year-to-date were $526,000 of non-recurring ALC due diligence and closing cost expenses. Excluding these non-recurring costs, consolidated net income would have been one cent per share higher, yielding 19 cents per share in the quarter and 35 cents per share year to date.

The automotive solutions segment reported higher pretax profit of $6.1-million in the second quarter -- an increase of $2.1-million or 51 per cent over last year. Year to date, the segment also reported higher pretax profit of $10.6-million -- an increase of $2.7-million or 34 per cent from the prior year. All businesses in this segment reported increased earnings, and the ALC business performed well within management's expectations during the first month under Exco's ownership. The casting and extrusion segment also reported strong pretax profit of $5.9-million in the second quarter, compared with $4.8-million last year -- an increase of $1.1-million or 22 per cent. Year to date, the segment reported pretax profit of $11.8-million -- an increase of $1.3-million or 13 per cent from last year. These improvements took place in spite of operational disruptions and extra costs caused by the launch of the company's extrusion greenfield facility in Brazil, which is beginning production this month, and the Castool greenfield facility in Thailand, which is expected to begin production in June.

Earnings were also favourably impacted by climbing earnings at Polydesign in Morocco where the income tax rate is 9 per cent and in Bulgaria where ALC earnings are subject to 10-per-cent tax rate. This trend is expected to continue and become more prevalent as earnings increase from Thailand (which are exempt from income tax for the next seven years) and other low tax countries where Exco manufactures, such as Colombia (15 per cent).

Operating cash flow before net change in non-cash working capital increased to $10.0-million in the second quarter and $19.3-million year to date, compared with $8-million and $15.9-million in the same periods last year. These increases were primarily the result of improved operating earnings, and, even after the net change in non-cash working capital is taken into account, cash provided by operating activities was still dramatically higher than last year both in the quarter and year to date.

The ALC acquisition has, after an absence of many years, introduced material bank debt onto Exco's balance sheet; however, the company remained net bank debt free throughout the quarter, with a net cash position of $5.4-million at quarter-end despite acquisition financing of $17.3-million and greenfield capital investments of $4.8-million during the quarter. Management is comfortable that the future performance of ALC and the strong cash provided by operating activities, which far exceeded last year both in the quarter and year to date ($16.3-million versus $7.1-million in the quarter, $21.6-million versus $10.5-million year to date), will continue to meet and likely exceed its expectations.

The outlook for Exco over the near term continues to remain strong. The economic recovery in North America, both in the automotive sector and the greater economy, appears to be intact and driving higher sales. European automotive sales, especially at BMW and the other German original equipment manufacturers, are also firming up and giving some reason for optimism for growth in this long-suffering market.

For further information and prior-year comparison, please refer to the company's second-quarter interim financial statements in the investor relations section posted on its website. Alternatively, please refer to SEDAR.

To access the live audio webcast, please log on to the company's website or directly to the webcast a few minutes before 10 a.m. on April 24, 2014. Microsoft Media Player is required for access. For those unable to listen on April 24, 2014, an archived version will be available on the Exco website.

We seek Safe Harbor.