TORONTO, Dec. 19, 2013 /PRNewswire/ – Exco Technologies Limited (TSX: XTC) today announced that it has signed a definitive agreement with
Automotive Leather Company Group (PTY) Limited (‘ALC’), a private
company organized under the laws of South Africa, whereby a
wholly-owned subsidiary of Exco would acquire all of the shares of ALC.

Pursuant to the terms of the definitive agreement, subject to receipt of
applicable regulatory approvals and other customary closing conditions,
the shareholders of ALC will receive approximately $17.2 million in
cash and the issue from treasury of 973,895 Exco shares. Exco’s cash
contribution will be funded primarily through the use of its operating
credit facility which will be increased to accommodate the cash payment
amount.

The closing is expected to occur in the second quarter of fiscal 2014.
In 2011 and 2012 ALC had revenue of approximately $78 million and $86
million respectively. In 2013, ALC sales will be approximately $100
million and is expected to grow over the next several years to
approximately $140 million as a new seat cover program for the family
of Mini models launch over the next 16 months. The transaction is
expected to be immediately accretive although rates of return will be
impacted by expensing due diligence and closing costs and will also be
impacted as ALC is integrated and the Mini business is launched.

ALC specializes in the manufacture and export of luxury leather interior
trim components to the middle and luxury automotive sector. The primary
customer is BMW and its tiers although other German OEMs and their
tiers are also customers.

ALC’s current business dates back to 1990. In 2002 it acquired a large
portion of the South African trim business of BMW. Since then it has
supplied quality leather seat covers and other interior trim components
to BMW and other German OEMs and their tiers. After closing, several
shareholders will continue to manage the ALC business and their
significant shareholdings in Exco will ensure that their interests are
aligned with those of Exco.

In addition to ALC’s traditional production site in the Rosslyn
Automotive Supply Park in South Africa, it has in 2011 established a
state-of-the-art production site near Sofia, Bulgaria and is currently
establishing another production site in the Kingdom of Lesotho. Taken
together these production sites employ approximately 2,000 employees.
ALC also has a customer service and technical centre in Germany with
approximately 25 staff enabling it to better service its German OEM
customer base.

Exco has had extensive leather and seat trim experience over the years
which has enabled it to develop its Automotive Solutions Group into a
globally competitive supplier of all manner of fabric, vinyl and
leather cut and sewn products. Exco believes that this experience,
combined with the specialized capabilities of ALC in making high
quality leather seat covers, will enable it to supply the German OEMs
in Europe and other parts of the world while also giving Exco a
state-of-the-art production facility in Eastern Europe from which to
supply the European automotive market with its other interior trim
products.

A conference call to discuss the transaction will be held on December
20, 2013 at 10:00 am (Toronto time) and can be accessed by dialing
(647) 427-7450 for local (Toronto) calls or toll free 1-888-231-8191.
To access the live audio webcast, please log on to www.excocorp.com, or http://www.newswire.ca/en/webcast/detail/1282811/1415287 a few minutes before the event.

Exco Technologies Limited is a global supplier of innovative
technologies servicing the die-cast, extrusion and automotive
industries. Through our 13 strategic locations, we employ 2,316 people
and service a diverse and broad customer base. Upon completion of the
transaction Exco will have 18 locations and employ approximately 5,000
people in 12 countries.

This news release contains forward-looking information and
forward-looking statements within the meaning of applicable securities
laws. We use words such as “anticipate”, “plan”, “may”, “will”,
“should”, “expect”, “believe”, “estimate” and similar expressions to
identify forward-looking information and statements especially with
respect to the likelihood that the announced acquisition will
close,that it will be accretive and that its sales and other financial
performance will be as announced. Such forward-looking information and
statements are based on assumptions and analyses made by us in light of
our experience and our perception of historical trends, current
conditions and expected future developments with respect to securing
business and pricing thereof, as well as other factors we believe to be
relevant and appropriate in the circumstances. Readers are cautioned
not to place undue reliance on forward-looking information and
statements, as there can be no assurance that the assumptions, plans,
intentions, transactions or expectations upon which such statements are
based will occur. Forward-looking information and statements are
subject to known and unknown risks, uncertainties, assumptions and
other factors which may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed, implied or anticipated by such
information and statements. These risks, uncertainties and
assumptions are generally described in the Company’s Management’s
Discussion and Analysis included in our 2013 Annual Report, in our 2013
Annual Information Form and, from time to time, in other reports and
filings made by the Company with securities regulatory authorities. Furthermore, in this case there is the additional risk that the
regulatory authorities do not approve the purchase of ALC or that the
conditions contained in the Share Purchase Agreement will not be met
and that the transaction will not close as described above or will
close at a different purchase price or on different terms.

While the Company believes that the expectations expressed by such
forward-looking information and statements are reasonable, there can be
no assurance that such expectations and assumptions will prove to be
correct. In evaluating forward-looking information and statements,
readers should carefully consider the various factors which could cause
actual results or events to differ materially from those indicated in
the forward-looking information and statements. Readers are cautioned
that the foregoing list of important factors is not exhaustive.
Furthermore, the Company disclaims any obligations to update publicly
or otherwise revise any such factors or any of the forward-looking
information or statements contained herein to reflect subsequent
information, events or developments, changes in risk factors or
otherwise.

SOURCE Exco Technologies Limited