ST. JOHN'S, Feb. 10 /CNW/ - Rutter Inc. (TSX: RUT) announced today that it has entered into an agreement for the sale of its controls and automation business to the Rockwell Automation Inc. group of companies. The transaction will involve the sale of most of the assets of Rutter's wholly-owned subsidiary, Rutter Hinz Inc. and its U.S. affiliate Rutter Hinz Inc. to the Rockwell Group for $22 million, subject to a final working capital adjustment which Rutter expects to be in its favour and Rockwell assuming the ongoing contracts and liabilities of the controls and automation business. The completion of the sale is also subject to a number of conditions, including the release of the existing security by and confirmation of restructuring of the Company's indebtedness with the principal lender.

Ryan Hinz, President and CEO of Rutter stated, "the employees of the controls and automation group will be offered employment with Rockwell. The assets and employees of the consulting engineering offices in St. John's and Clarenville, Newfoundland and Labrador, are not part of the sale and will continue to operate as Rutter Engineering, a division of Rutter. Rockwell has determined that there will no longer be a role for me in the new organization and accordingly, I will not be joining their team."

In commenting on the agreement announced today, Mr. David Beutel, Chairman of the Board, stated that, "As noted in our release on our year end results, Rutter has looked at all possible opportunities to address the debt imbalance. The agreement announced today is a key step in our overall restructuring plans and will allow us to significantly reduce total outstanding debt. We expect to announce terms of the debt restructuring in the near future. Our technology business has been growing well this year and we look forward to the future with the many opportunities ahead in both the Technologies segment and in the consulting engineering group."

About Rutter Inc. - Rutter is a global enterprise focused on providing innovative technologies and engineering solutions that improve the efficiency and safety of operating assets in defense, marine, transportation, oil and gas and other industrial sectors. Key activities of the enterprise include technology development and marketing, outsource manufacturing of electronics and electronic subassemblies and automation and control systems engineering. For more information see www.rutter.ca

Forward-Looking Statements

This news release may contain forward-looking statements that involve risks and uncertainties. These forward-looking statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this news release will be realized.

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