Toromont Announces Record Results for 2007

Toromont Industries Ltd. (TSX: TIH) today reported record financial results for 2007 representing the fifth consecutive year of growth. Revenues and net earnings were higher compared to the same periods of 2006. Net earnings for the quarter were $39.3 million or $0.61 per share, up 7% from $36.9 million or $0.58 per share reported in the fourth quarter of 2006. For the year, net earnings were $122.3 million or $1.89 per share, up 23% from 2006. Record mobile equipment sales and rentals together with solid project execution and very strong growth of the US compression business were the primary contributors to the higher earnings. Full year results for 2007 included a $0.20 per share gain on sale of property recorded in the second quarter.

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$ millions,             Three months ended             Twelve months ended
 except                        December 31                     December 31
 per            -----------------------------------------------------------
 share amounts      2007    2006  % change        2007      2006  % change
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Revenues        $  540.7 $ 495.8         9%  $ 1,903.0 $ 1,764.8         8%
Operating
 income         $   62.1 $  59.7         4%  $   180.8 $   166.4         9%
Net earnings    $   39.3 $  36.9         7%  $   122.3 $    99.4        23%
Earnings per
 share basic    $   0.61 $  0.58         5%  $    1.89 $    1.56        21%
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"We are pleased with our results, particularly in light of the record highs set in 2006. Revenues have increased annually over the past ten years and net earnings have been higher in nine of the last ten years. The Equipment Group exceeded expectations in the fourth quarter, setting a new December record for sales of new equipment. The Compression Group also exceeded expectations in the fourth quarter on excellent project execution in all operations and continued business growth in the United States," stated Robert M. Ogilvie, Chairman and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group delivered exceptional results, with solid growth in both revenues and operating income driven by strong demand in the mining, infrastructure and marine industries. Product support activity was particularly strong in the last quarter after a slower start to the year. Rental operations through Battlefield - The CAT Rental Store have shown consistent growth in revenues since inception in 1996, adding another 16% in 2007. The Compression Group reported a 3% reduction in operating income, but we are nonetheless very pleased with the overall results given softness in Canadian natural gas markets. In Canada, management has done an excellent job of optimizing facilities, controlling costs and executing projects; while current market conditions are tough, we believe the long-term fundamentals remain sound. US natural gas operations have seen terrific growth in 2007 in light of our expanded presence in this market, improved project execution and underlying market strength. Industrial and recreational refrigeration reported significantly improved results in 2007, aided by higher activity and cost control."

Highlights:

- Equipment Group revenues were up 9% in the fourth quarter of 2007 versus the same period of 2006 on 17% growth in new machine and engine sales, a 14% increase in rentals and an 11% increase in product support. Operating income in the quarter increased 18% over the same period last year on the higher revenues and improved gross margins.

- For the year, Equipment Group revenues were up 11% over 2006 while operating income was up 18%. Revenue growth was driven by a 20% increase in new machine and engine sales and rental revenues. Growth in operating income, up 18%, reflects higher revenues and improved gross margins.

- Equipment Group bookings in the fourth quarter were down 25% from the record levels seen in the comparable period last year, which had included several large mining orders. For the year, bookings were approximately the same level as 2006. Backlogs were also comparable to the record levels reported at the end of last year.

- Compression Group revenues were up 9% in the quarter compared to the same period last year on 9% growth in package sales and an 11% growth in product support revenues. Operating income for the quarter was down 10% on lower operating margins in the Canadian natural gas compression market due to reduced activity levels, partially offset by increased activity levels in US operations and improved project execution in natural gas operations.

- For the year, Compression Group revenues were up 4% on an 11% increase in product support revenues and a 2% increase in package sales. Operating income for the year was down 3% on lower operating margins in Canada, partially offset by improvements in US natural gas operations and refrigeration operations.