- Net earnings totalled $4.3 million or $0.20 per share on consolidated

sales of $94.2 million, while cash flows from operating activities(x)

amounted to $6.3 million or $0.29 per share for the quarter ended

February 28, 2009.

- Richelieu ended the period with a positive cash balance and a working

capital of $135.0 million for a ratio of 4.9:1: an excellent financial

position to easily pursue its business strategy.

- Next dividend payment - a dividend of $0.08 per share is payable on

April 23, 2009 to shareholders of record as at April 9, 2009.

----------------------------------------------------------------- --------

(x) Before net change in non-cash working capital balances related to

operations

TSX: RCH

MONTREAL, March 26 /CNW Telbec/ - At its Annual General Meeting of Shareholders held today, Richelieu announced sales of $94.2 million, EBITDA of $8.0 million and net earnings of $4.3 million or $0.20 per share for the quarter ended February 28, 2009. The Company remains in a most healthy and solid financial position. As at February 28, Richelieu had no significant debt, a positive cash balance and a working capital of $135.0 million.

Although they are positive, these results are lower than the first quarter of the previous fiscal year. It is important to remember that the first three months from the beginning of December to the end of February are generally the year's weakest due to the winter season. This year, the first quarter witnessed a slowdown in activity in three geographic markets, namely Central and Western Canada and the United States, which were further affected by the economic crisis. Thus, the growth Richelieu achieved in Eastern Canada in its two major markets - manufacturers and retailers including renovation superstores - did not offset the internal decrease in its other geographic markets; consequently, sales decreased from the corresponding period of 2008. Besides this factor are the additional expenses incurred by Richelieu to increase its product offering and presence in the retailers and renovation superstores market, thereby reducing net earnings from the same quarter of 2008. Nevertheless, the expenses incurred to further develop the retailers market should be considered an investment that should lead to benefits in the medium term.

"Over the next year, we plan to open two distribution centres in the United States, the cost structures of which should not affect our results. Thus, we will increase our presence in this market in order to better meet demand. We are considering various acquisition projects, but will be extra cautious in order to target the best expansion opportunities matching Richelieu's criteria," indicated Richard Lord, President and Chief Executive Officer of Richelieu.

OPERATING RESULTS FOR THE FIRST QUARTER ENDED FEBRUARY 28, 2009 COMPARED

WITH THE FIRST QUARTER ENDED FEBRUARY 29, 2008

Consolidated sales totalled $94.2 million, compared with $96.1 million for the same period of 2008. This 2.0% or $1.9 million decline is attributable to a 3.2% internal decrease, whereas the growth-by-acquisition was 1.2%, reflecting the contribution of Top Supplies, Inc. (North Carolina) and Acroma Sales Ltd (British Columbia), acquired on April 7 and July 28, 2008 respectively.

Sales to manufacturers amounted to $77.1 million, down by 1.8% or $1.4 million from the same quarter of 2008. Sales to hardware retailers including renovation superstores decreased to $17.0 million, down by 3.1% or $0.5 million.

In Canada, sales totalled $76.0 million, down by 3.6% or $2.8 million, reflecting a 4.3% internal decrease, whereas the growth-by- acquisition was 0.8%, stemming from Acroma's contribution. Sales in Canada accounted for 80.8% of the quarter's consolidated sales. Richelieu posted sales growth in Eastern Canada in the manufacturers and retailers including renovation superstores markets, whereas the Central and Western Canadian markets sustained a decrease as the economic climate further affected these regions.

In the United States, sales totalled US$14.7 million, down by 14.5% or US$2.5 million, of which 16.9% came from an internal decrease, whereas the growth-by-acquisition was 2.4% due to Top Supplies' contribution. The decline in sales in the U.S. network was caused by the crisis prevailing in the United States. Taking into account the exchange rate, these sales expressed in Canadian dollars amounted to $18.1 million, compared with $17.2 million for the first quarter of 2008, thereby representing 19.2% of the period's consolidated sales.

Earnings before income taxes, interest, amortization and non- controlling interest (EBITDA) stood at $8.0 million, down by 23.9%. The gross profit margin decreased slightly due to the market penetration expenses incurred to increase the Company's offering and presence in the retailers including renovation superstores market. Nevertheless, these expenses should be considered an investment that should lead to benefits in the medium term. The EBITDA profit margin decreased to 8.5% from 11.0% for the first quarter of 2008; this decline is due to the reduction in sales and the operating expenses incurred to further develop the retailers market.

Amortization of capital assets increased by $0.3 million due primarily to the expansion completed in 2008, whereas amortization of intangible assets was practically stable at some $0.3 million.

Income taxes amounted to $2.1 million, compared with $2.7 million for the first quarter of 2008, reflecting the decline in earnings before income taxes and non-controlling interest. The income taxes of the first quarter of 2008 reflected the reduction in the Canadian tax rate effective January 1, 2008.

Considering the aforementioned factors, net earnings decreased by 34.4% or $2.3 million to $4.3 million, representing 4.6% of the quarter's consolidated sales. Earnings per share amounted to $0.20 (basic and diluted), compared with $0.29 (basic and diluted) for the first quarter of 2008.

Comprehensive income totalled $5.9 million, on account of a latent foreign exchange gain of $1.5 million on translation of the financial statements of the subsidiary in the United States.

FINANCIAL POSITION

Change in principal cash flows and sources of financing

Operating activities

Cash flows from operating activities (before net change in non- cash working capital balances related to operations) totalled $6.3 million or $0.29 per share, compared with $8.0 million or $0.34 per share for the first quarter of 2008, mainly reflecting the decline in net earnings. Net change in non-cash working capital balances related to operations represented a cash outflow of $6.3 million; whereas accounts receivable provided cash flows of $7.2 million, accounts payable decreased by $4.7 million, income tax receivable increased by $4.0 million, and inventories by $4.8 million - these are always higher at the end of the first quarter in anticipation of future demand. Consequently, operating activities represented a cash outflow of $26,000, as opposed to a cash inflow of $1.1 million during the comparable period of 2008.

Financing activities

Richelieu paid a total of $1.8 million in shareholder dividends, an amount comparable to the dividends paid in the first quarter of 2008. The Company purchased common shares for a consideration of some $0.1 million, whereas it purchased shares for $0.8 million and repaid $0.2 million in debt during the first quarter of 2008. Financing activities thus used total cash flows of $1.8 million during the first quarter of 2009, compared with $2.7 million in the corresponding quarter of 2008.

Investing activities

Richelieu invested $0.9 million in various capital expenditures during the first quarter, compared with $0.5 million in the first quarter of 2008. This amount was primarily invested in displays targeted to renovation superstores, computer equipment and rolling stock for warehouses.

Sources of financing

As at February 28, 2009, cash and cash equivalents totalled $3.2 million, compared with $5.7 million for the same period of 2008. The Company posted a working capital of $135.0 million for a current ratio of 4.9:1, compared with $130.9 million and a 4.3:1 ratio as at November 30, 2008. Richelieu estimates that it has the capital resources needed to respect its ongoing obligations in 2009 and to assume the funding requirements needed for its growth and the financing and investing activities planned for the year.