Bestar: Results for the 3rd Quarter Ending September 30th, 2009

• Press Release
• Source: Bestar Inc.
• On 3:12 pm EST, Monday November 9, 2009

LAC MEGANTIC, QUEBEC--(Marketwire - Nov. 9, 2009) - Bestar Inc. (CNSX:BES) - Gross revenues for the third quarter ending September 30th, 2009 are $8,702,000 CA, a decrease of 17.9% in comparison to $10,605,000 for the same quarter in 2008. Earnings before income taxes of $93,000 CA was realized for this third quarter while a loss before taxes of $228,000 CA was recorded for this same quarter in 2008. Net earnings for this 2009 third quarter are $65,000 CA or $ 0,00 per share in comparison to a net loss of $160,000 CA or $ (0.01) per share for the same quarter of 2008.

Gross revenues for the first nine months of 2009 total $28,790,000 CA , a decrease of 7.5% compared to $31,124,000 for the same period in 2008. Earnings before income taxes for these nine months of 2009 are $401,000 CA while a loss of $742,000 CA was reported for the same nine months in 2008. Net earnings for the first nine months total $272,000 CA or 0.02$ per share in comparison to a net loss of $540,000 CA or $(0.04) per share for the first nine months of 2008.

"The current economic recession continues to affect our furniture sales at several of our US customers. Despite the economic slowdown, a favorable exchange rate on sales, a reduction in fixed expenses and a reduction in our inventories since the beginning of 2009 have allowed Bestar to improve its overall financial condition ." commented Mr. Tardif.

"On October 31st the Company still did not meet the $2 million minimum value of publicly traded shares required to maintain trading on the Toronto Stock Exchange (TSX). As previously announced in our October 9th and November 3rd press releases and after studying the different possibilities to continue publicly trading shares, the Company decided that the Canadian National Stock Exchange (CNSX) was their best option. The Company then asked that Bestar'shares be de-listed from the TSX and listed on the CNSX. Since November 6th, 2009 Bestar shares are now traded on the CNSX, under the same symbol "BES" ." added Mr. Tardif.

"On an other note, in order to increase our inventories for the introduction of a new product at one of our major clients in December and a promotion of an existing product in the beginning of 2010, at the end of October, we have decided to end our work share program which was in place since the beginning of 2009"continued Mr. Tardif.

"Even tough we have begun to see encouraging signs of economic improvement, an increased demand for furniture, especially office furniture may be somewhat delayed. We take the opportunity of this economic slowdown to focus our efforts on standardization, increased productivity and going forward with Just-In-Time management systems. While growth perspectives are still uncertain, we are preparing the way and will be ready when the economic turnaround arrives," concluded Mr. Tardif.

Results Summary

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(Results in thousands of dollars, except earnings per share)

                                   Q1       Q2       Q3       Q4    Total

Revenue                 2007   11,279   11,093   10,613   10,448   43,433
                        2008   10,950    9,569   10,605    9,304   40,428
                        2009   11,523    8,565    8,702        -   28,790

Net earnings (loss)     2007      104       79       17       50      250
                        2008     (103)    (277)    (160)  (1,074)  (1,614)
                        2009      206        1       65        -      272

Earnings (loss) per
 common share           2007     0.01     0.01     0.00     0.00     0.02
                        2008    (0.01)   (0.02)   (0.01)   (0.08)   (0.12)
                        2009     0.02        -     0.00        -     0.02

Fully diluted earnings
 (loss) per common
 share                  2007     0.01     0.01     0.00     0.00     0.02
                        2008    (0.01)   (0.02)   (0.01)   (0.08)   (0.12)
                        2009     0.02     0.00     0.00        -     0.02

Total Assets            2007   25,671   25,783   25,337   25,874   25,874
                        2008   26,390   28,751   28,512   28,937   28,937
                        2009   28,644   26,737   24,981        -        -

Net debt (1)            2007    5,500    5,651    5,326    4,605    4,605
                        2008    6,742    8,987    9,259    8,198    8,198
                        2009    8,696    7,955    6,568        -        -

Weighted average of
 outstanding shares
 (in thousands)         2007   13,038   13,038   13,038   13,038   13,038
                        2008   13,038   13,038   13,038   13,038   13,038
                        2009   13,038   13,038   13,038        -   13,038

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Note 1 : Net debt comprises bank loans and the long-term debt, net of cash.

Corporate Profile

Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality. During the last years Bestar has specialized in office furniture and distributes its products mainly in the United States and Canada. In order to offset a decrease in sales Bestar developed a new business plan in 2006 which includes the fabrication of components.

The company became public in 1986 and operates from its plant in Lac-Megantic, Quebec, Canada.

Bestar'shares are listed on the Canadian National Stock Exchange ("CNSX") under the symbol "BES"

Release Declaration

This press release may contain information and declarations on the future performance of the company that are, by nature, speculative. These declarations are based on suppositions, uncertainties and the best possible evaluation of future events by management. They are subject to certain risk factors such as exchange rates, the growing competition from emerging countries as well as fluctuating costs in raw material and shipping.

Shareholder Information

Shareholders may find this press release under the MARKETWIRE news file at www.marketwire.com , on SEDAR at www.sedar.com and on CNSX website at : www.cnsx.ca. The management report and comprehensive financial statements for the quarter ended September 2009 will be available, no later than November 13, 2009, through the SEDAR database at www.sedar.com and on our website at www.bestar.ca.

Paulin Tardif
Bestar Inc.
Chairman of the Board
President and Chief Executive Officer
819-583-1017