Mr. Douglas Good reports

UNISYNC LAUNCHES MAJOR INTEGRATION PLAN TO IMPROVE ITS SERVICE OFFERING AND MAXIMIZE OPERATIONAL EFFICIENCIES

Unisync Corp.'s Unisync Group Ltd. (UGL) division has begun a major operational consolidation endeavour, integrating its distribution and small-lot product manufacturing and embellishment facilities (based in Carleton Place, Ont., and its St. Laurent, Que.) into its recently expanded 140,000-square-foot main distribution centre in Guelph, Ont. This strategic transformation places the company's commitment to customer service at the forefront by leveraging Unisync's specialized warehouse management and electronic storefront systems to elevate the service experience of the company's customers. This consolidation was made possible through the implementation of an upgraded ERP (enterprise resource planning) system and the successful amalgamation of corporate entities following Unisync's acquisitions of Carleton Uniforms and Utility Garments.

While Unisync's service, sales and purchasing teams will continue to operate from the company's St. Laurent location to ensure uninterrupted service to Unisync's valued customers, this move is strategically designed to substantially enhance the company's service offerings to the national and Quebec-based clients that have been warehoused at that location and to generate significant domestic operational efficiencies.

Driven by a vision of a stronger and more unified company poised for an enhanced service offering and sustainable growth, these operational adjustments are expected to yield an estimated annual savings of $2.5-million in direct and administrative labour costs due to a net reduction of about 20 per cent in the UGL division's head count. The restructuring is scheduled for completion within the next three months and is expected to cause a one-time fourth quarter charge for employee separation costs of approximately $900,000.

In addition to improved operational efficiency and reduced labour costs, management is pursuing opportunities to lease the estimated 35,000 to 40,000 square feet of excess commercial/light industrial space that will become available in Unisync's Montreal facility as a result of this restructuring.

Unisync extends its sincere appreciation to the dedicated employees who will no longer be with the company following this restructuring, many of whom have contributed their talents and expertise over lengthy careers with the company. Unisync understands that adapting to change can be challenging and is fully committed to facilitating a smooth and respectful transition process for all affected employees.

About Unisync Corp.

Unisync is a broad-based vertically integrated North American enterprise with exceptional capabilities in garment design, domestic manufacturing and offshore outsourcing, including state-of-the-art Web-based B2B (business to business) ordering, distribution and program management systems. Unisync operates through two business units: UGL, with operations throughout Canada and the United States, and 90-per-cent-owned Peerless Garments LP, a domestic manufacturing operation based in Winnipeg, Man.

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