Castool Community

Riganelli, Stalder, Muller, Robbins

Toronto, October 18, 2010 - Exco Technologies Limited (TSX-XTC) today announced that its Castool division, which designs and manufactures tooling systems for die cast machines and extrusion presses, has entered into a definitive agreement to purchase all of the shares of Allper AG.  Allper is a Swiss corporation which designs and markets proprietary consumable die cast tooling.  Castool, as a licensee of Allper’s technology in North America since 1993, is very familiar with Allper’s technology and its operation.  Allper’s proprietary ring and plunger tip technology which has been developed and refined over the last 20 years is broadly accepted by the die cast industry and is an integral part of Castool’s die cast tooling system.  Paul Robbins, General Manager of Castool says “this acquisition will allow Castool to own the technology currently licensed from Allper in North America and, with Allper’s network of sales agents and distributors in Europe and Asia, Castool will be able to expand its marketing reach to those markets.”

Andre Muller, founder and owner of Allper, who will continue on in the employ of Allper after the sale, says “I am proud of our association and close collaboration with Castool over the past 17 years and look forward to continuing the development of new technologies which will advance the competitiveness of the global die cast industry.”  Definitive agreements have been signed and the transaction will have effect and be finally priced on October 31, 2010.  The purchase price is not expected to exceed $2,000,000.00 which will be paid in cash and will be based on the value of underlying net assets acquired on October 31, 2010.  The acquisition is expected to be immediately accretive to Exco’s earnings.