Counsel Corporation Subsidiary to Move Case Goods Production Offshore to Asia

Toronto-based Counsel Corporation, a private equity investor and alternative asset manager, announced that commencing in January, 2010, its case goods subsidiary will move the balance of its domestic manufacturing to Asia while its Toronto facility will be maintained as a custom design centre. The transition of the Toronto facility will result in one-time pre-tax charges of approximately $3 million. On a going-forward basis, moving production to Asia will result in the conversion of significant fixed costs to variable costs. Counsel expects this conversion to result in cost reductions that more than offset the charges in the first year alone, and to have a material positive affect on the profitability of its case goods business in subsequent years.