VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 19, 2006) - Finning International Inc. ("Finning") (TSX:FTT) announced today that its Canadian division has secured its first major mining equipment sale to Canadian Natural Resources Limited for the Horizon Oil Sands Project, north of Fort McMurray. The transaction, valued at approximately C$264 million, includes the purchase of 23 new Caterpillar 797B mining trucks scheduled to be delivered in 2008. In addition to the equipment sale, the transaction also includes a multi-year product support agreement.
"The Alberta oil sands continue to hold tremendous growth opportunities for Finning," said Doug Whitehead, president and CEO of Finning International. "We believe we are well positioned to continue to benefit from the very large amount of new investment planned for the oil sands over the next decade."
"We are very pleased to be working with Canadian Natural as it prepares to move to the production phase at its new Horizon Project," said Ian Reid, president of Finning (Canada). "The 797 haul truck is widely recognized as among the best in the world for this type of application. I am confident that the Caterpillar equipment, combined with the experienced Finning customer support teams, will help Canadian Natural achieve the production levels and efficiencies it is striving for."
Canadian Natural's Horizon Oil Sands Project, located 70 km north of Fort McMurray, will utilize open pit mining methods during its three phases of development. Production of synthetic crude oil is expected to begin during the second half of 2008 ramping up to a rate of 110,000 barrels per day. The second phase of production is expected in 2010 with an increase in production of 45,000 barrels. The third phase of development is expected in 2012 and will bring total production to 232,000 barrels per day.
Finning International Inc. is the world's largest Caterpillar equipment dealer. The Company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Argentina, Bolivia, Chile and Uruguay). Finning also owns Hewden, the largest equipment rental business in Europe. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit our website at www.finning.com.
This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.
Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.
FOR FURTHER INFORMATION PLEASE CONTACT:
Finning International Inc.
Vice President, Investor Relations
(604) 331-4899 (FAX)