On August 27, 2007, the Ontario Superior Court of Justice (the “Court”) granted an Order terminating the proceedings commenced by the Notice of Intention to file a Proposal filed by the Superior Seal Corp. (“Superior” or the “Company”) on August 13, 2007 pursuant to the Bankruptcy and Insolvency Act (the “BIA”) and deeming the Company to be bankrupt. Ernst & Young Inc. was appointed trustee of the estate of the Company in bankruptcy (the “Trustee”). Pursuant to a further Order of the Court, Ernst & Young Inc. was appointed interim receiver and receiver and manager of the Company (the “Receiver”) on August 27, 2007.

The Receiver is continuing to complete certain customer orders while it attempts to sell Superior’s assets either on a "going concern" or on a piece meal basis. It is currently uncertain how long production will continue.