Lac-Mégantic, Quebec − Acting on behalf of the Honourable Jean-Pierre Blackburn, Minister of Labour and Minister of Canada Economic Development, the Honourable Christian Paradis, Member of Parliament for Mégantic–L'Érable and Secretary of State for Agriculture, today announced that Bestar Inc. will receive $500,000 in repayable funding for the acquisition of specialized equipment that will enable the firm to reduce its manufacturing costs while enjoying flexibility of operation combined with higher production capacity.

Bestar Inc. specializes in the processing of particle board for use in the design, manufacture and sale of ready-to-assemble furniture. With its 250 employees, the company has positioned itself over the past few years as a player in the office furniture niche market. In 2006, the firm implemented a new commercial strategy aimed at diversifying its operations into such areas as components manufacturing.

"This contribution has been awarded through Canada Economic Development's Business and Regional Growth program, whose goals include helping enterprises raise their capacity for innovation, improve their efficiency and become better able to face the competition, all of which are conducive to sustainable growth. Bestar's modernization plan will help improve its competitiveness and lead to the maintenance of some 125 jobs. This project illustrates the efforts our small and medium-sized enterprises are making to adjust to the new global economy, where innovation and the manufacture of high value-added products are of key importance," stated Mr. Paradis.

"Through their diversity and dynamism, SMEs contribute to the wealth of the Canadian economy and play a significant part in fostering the vitality of numerous Quebec communities. That is why the Government of Canada is committed to helping these businesses improve their productivity, a key factor in ensuring their success in the marketplace. This Bestar project is consistent on all fronts with one of the main objectives of the Advantage Canada strategic plan, namely to build a strong economy capable of ensuring all Canadians a better quality of life," Minister Blackburn commented.

"The increase in sales we recorded in 2007 illustrates our capacity for implementing a well-defined development strategy. But these results also show the need for us to become more competitive, particularly within the current context of a high Canadian dollar. It has therefore become clear that, despite all of our efforts in other areas, the future of our company rests on the acquisition of specialized equipment and modernization of our facilities. This support from Canada Economic Development will help us more effectively meet the needs and expectations of our existing clients in both the office furniture and components markets.

It will also enable us to expand our client base, break into different niche sectors and reach agreements with various manufacturers," explained Paulin Tardif, Chairman of the Board, President and CEO of Bestar Inc.