Strongco Reports Third Quarter Profit of $0.25 per Share.

MISSISSAUGA, Ontario -- Strongco Inc. today released its results for the third quarter of 2004.

For the three months ended September 30th, 2004 Strongco generated net income after tax of $2.3 million, ($0.25 per share), vs. $1.5 million, ($0.16 per share), for the comparable quarter

For the nine months ended September 30th, 2004 net income after tax was $5.5 million, ($0.59 per share), vs. $3.2 million, ($0.34 per share), for the comparable period of 2003. On a diluted basis the net income per share was $0.57 vs. $0.34 last year.

Strongco declared a quarterly dividend of $0.05 per share payable December 15th, 2004 to shareholders of record at the close of business on November 30th, 2004.

Ian Sutherland, Chairman of The North West Company, was elected to the Board of Directors.

Mr. Larry Pirnak, President, commented, "We are pleased with the results and anticipate continued improvement for the balance of 2004."

Strongco will host a conference call at 9:00 a.m. on Friday October 29th, to further discuss its third quarter. To participate in the conference call, dial 800.440.1782, reservation number is 21211492. A taped version of the call will be available until November 12th, 2004. Dial 800.558.5253 and enter the reservation number.

Strongco is a full-line equipment sales and service company. Its shares are listed on the Toronto Stock Exchange and its website can be accessed at www.strongco.com

Strongco Inc.

                           CONSOLIDATED BALANCE SHEETS

(unaudited - in                As at           As at          As at
 thousands of           September 30    September 30    December 31
 dollars)                     $ 2004          $ 2003         $ 2003

ASSETS
Current
Accounts receivable           29,955          31,463         31,040
Inventories                   86,020         102,578         87,295
Prepaid expenses and
 deposits                      1,418             997          1,797
-------------------------------------------------------------------
Total current assets         117,393         135,038        120,132
Rental equipment, net         12,800          19,016         17,425
Capital assets, net           16,937          17,719         17,548
Capital assets held for
 sale, net                         -           4,227          3,980
Other assets                     124               -              -
Accrued benefit asset          4,188           2,789          3,314
-------------------------------------------------------------------
                             151,442         178,789        162,399
-------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Current
Bank indebtedness             10,940          26,399         21,465
Accounts payable and
 accrued liabilities          22,153          30,583         25,312
Equipment notes payable       57,024          63,593         57,540
Current portion of
 long-term debt                3,188           6,510          4,663
Income and other taxes
 payable                          88             363            424
-------------------------------------------------------------------
Total current liabilities     93,393         127,448        109,404
Long-term debt                    96           2,613          1,720
Future income taxes            2,158               2            229
Accrued benefit liability        966             825          1,295
-------------------------------------------------------------------
Total liabilities             96,613         130,888        112,648
-------------------------------------------------------------------

Shareholders' equity
Share capital (note 2)        52,150          52,107         52,131
Contributed surplus (note 2)      21               -              -
Retained earnings (deficit)    2,658         (4,206)        (2,380)
-------------------------------------------------------------------
Total shareholders' equity    54,829          47,901         49,751
-------------------------------------------------------------------
                             151,442         178,789        162,399
-------------------------------------------------------------------
See accompanying notes


                          Strongco Inc.

                  CONSOLIDATED STATEMENTS OF INCOME
                      AND RETAINED EARNINGS

(unaudited - in
 thousands of
 dollars, except              Three months              Nine months
 per share              ended September 30       ended September 30
 amounts)             $ 2004        $ 2003       $ 2004      $ 2003
-------------------------------------------------------------------

Revenue               88,351        73,078      248,490     238,416
Cost of sales         71,917        57,828      201,114     192,406
-------------------------------------------------------------------
Gross margin          16,434        15,250       47,376      46,010

Expenses
Administration,
 distribution
 and selling          13,126        14,139       39,496      41,270
Other income           (422)       (1,581)      (1,264)     (2,179)

-------------------------------------------------------------------
Income before
 the following         3,730         2,692        9,144       6,919
Interest                 632         1,196        2,243       3,746

-------------------------------------------------------------------
Income before
 income taxes          3,098         1,496        6,901       3,173
Provision for
 (recovery of)
 income taxes            779            33        1,392        (22)

-------------------------------------------------------------------
Net income             2,319         1,463        5,509       3,195
-------------------------------------------------------------------

Retained earnings
 (deficit), beginning
 of period               810       (5,669)      (2,380)     (7,401)
Common share dividends   471             -          471           -
-------------------------------------------------------------------
Retained earnings
 (deficit), end
 of period             2,658       (4,206)        2,658     (4,206)
-------------------------------------------------------------------

Basic earnings per share
Earnings per share      0.25          0.16         0.59        0.34
-------------------------------------------------------------------
Weighted
 average number
 of shares         9,417,711     9,387,802    9,416,312   9,386,691
-------------------------------------------------------------------

Diluted earnings
 per share
Earnings per
 share                  0.24          0.16         0.57        0.34
-------------------------------------------------------------------
Weighted
 average number
 of shares         9,605,721     9,499,292    9,588,673   9,505,454
-------------------------------------------------------------------

See accompanying notes


                              Strongco Inc.

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited - in               Three months              Nine months
 thousands of           ended September 30       ended September 30
 dollars)             $ 2004        $ 2003       $ 2004      $ 2003
-------------------------------------------------------------------

OPERATING
 ACTIVITIES
Net income             2,319         1,463        5,509       3,195
Add (deduct)
 items not
 involving a
 current outlay
 (inflow) of
 cash
 Amortization of
  rental
  equipment              833         1,149        2,656       3,518
 Amortization of
  capital assets         261           302          740         903
 (Gain) / loss
  on disposal of
  assets held for
  sale                     -             -           14           -
 (Gain) / loss
  on disposal of
  capital assets
  and rental
  equipment               26         (340)           73       (554)
 Stock based
  compensation             6             -           21           -
 Future income
  taxes                  748          (70)        1,929       (119)
 Other                 (794)           250      (1,327)       (458)
-------------------------------------------------------------------
                       3,399         2,754        9,615       6,485
Net change in
 non-cash
 working capital
 balances
 related to
 operations              553         (604)      (1,272)         710
-------------------------------------------------------------------
Cash provided
 by (used in)
 operating
 activities            3,952         2,150        8,343       7,195

INVESTING
 ACTIVITIES
Purchase of
 rental
 equipment               (3)          (26)         (43)       (133)
Purchase of
 capital assets        (107)          (66)        (266)       (141)
Proceeds on
 disposal of
 assets held for
 sale                      -             -        3,966           -
Proceeds on
 disposal of
 capital assets
 and rental
 equipment               757         1,849        2,076       4,673
-------------------------------------------------------------------
Cash provided
 by investing
 activities              647         1,757        5,733       4,399

FINANCING
 ACTIVITIES
Decrease in
 bank
 indebtedness        (3,244)       (1,761)     (10,525)     (1,886)
Repayment of
 long-term debt          (6)       (1,384)        (379)     (4,845)
Decrease in
 financing of
 rental
 equipment             (885)         (769)      (2,720)     (4,870)
Dividends              (471)             -        (471)           -
Issuance of
 share capital             7             7           19           7
-------------------------------------------------------------------
Cash used in
 financing
 activities          (4,599)       (3,907)     (14,076)    (11,594)

-------------------------------------------------------------------
Net increase in
 cash and cash
 equivalents
 during the
 period                    -             -            -           -
Cash and cash
 equivalents,
 beginning of
 period                    -             -            -           -
-------------------------------------------------------------------
Cash and cash
 equivalents,
 end of period             -             -            -           -
-------------------------------------------------------------------

Supplemental cash flow
 information
Interest paid            633         1,245        2,311       3,826
Income taxes
 recovered               (4)         (260)        (201)       (370)

See accompanying notes


September 30, 2004
Notes to unaudited interim consolidated financial statements

1. Basis of Presentation

The unaudited interim consolidated financial statements have been prepared following the accounting policies as set out in the fiscal 2003 annual consolidated financial statements.

The interim consolidated financial statements have been prepared by the Corporation in accordance with Canadian generally accepted accounting principles (GAAP) except that certain disclosures required for annual financial statements have not been included. The interim consolidated financial statements follow the same accounting policies and methods in their application as the most recent annual financial statements. In the opinion of management, all adjustments necessary for a fair presentation are reflected in the interim consolidated financial statements. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation's annual report for fiscal year 2003.

2. Share Capital and Contributed Surplus

Details of issued share capital and contributed surplus are as
follows:

                       Three months ended        Three months ended
                       September 30, 2004        September 30, 2003
                       ------------------        ------------------
                       Shares      Amount         Shares     Amount
                            #           $              #          $
-------------------------------------------------------------------
Common Shares,
 beginning of
 period             9,417,385      52,143      9,386,135     52,100
Shares issued
 pursuant to
 exercise of
 stock options          5,000           7          5,000          7
-------------------------------------------------------------------
Common Shares,
 end of period      9,422,385      52,150      9,391,135     52,107
-------------------------------------------------------------------


                        Nine months ended         Nine months ended
                       September 30, 2004        September 30, 2003
                       ------------------        ------------------
                       Shares      Amount         Shares     Amount
                            #           $              #          $
-------------------------------------------------------------------
Common Shares,
 beginning of
 period             9,408,635      52,131      9,386,135     52,100
Shares issued
 pursuant to
 exercise of
 stock options         13,750          19          5,000          7
-------------------------------------------------------------------
Common Shares,
 end of period      9,422,385      52,150      9,391,135     52,107
-------------------------------------------------------------------

Contributed Surplus                    21                         -
-------------------------------------------------------------------

Contributed surplus is comprised of stock based compensation.

3. Post Retirement Obligations

Net benefit plan expense for the three and nine months ended
September 30, 2004 and September 30, 2003 is as follows:

                    Three months ended          Nine months ended
                          September 30               September 30
                         2004     2003             2004      2003
-----------------------------------------------------------------
                            $        $                $         $

Net Benefit Plan Expense  466      621           1,136      1,565

4. Segmented Information

Segmented information for the three and nine months ended September
30, 2004 and September 30, 2003 is as follows:

               Three Months Ended September 30, 2004
               Equip-   Equip-   Engin-  Segment   Reconci-  Company
                 ment     ment    eered   Totals       ling    Total
              Distri-  Rentals  Systems               Items
               bution

Gross Sales    79,237    2,381    6,795   88,413              88,413
Intersegment       13        -       49       62                  62
--------------------------------------------------------------------
Net Sales      79,224    2,381    6,746   88,351          -   88,351

Interest
 Expense        (492)     (94)     (46)    (632)               (632)
Segment
 profit
 (loss)         4,896     (19)     (16)    4,861 (1,763) (a)   3,098
Amortization
 of capital
 assets
 and rental
 equipment        269      747       74    1,090          4    1,094
Segment
 total assets 121,892   14,274   10,592  146,758   4,684 (b) 151,442
Segment
 capital and
 rental
 assets        14,746   12,440    2,521   29,707         30   29,737
Segment
 capital
 assets held
 for sale           -        -        -        -                   -
Capital and
 rental asset
 expenditures      28        3       79      110                 110



               Three Months Ended September 30, 2003
               Equip-   Equip-   Engin-  Segment   Reconci-   Company
                 ment     ment    eered   Totals       ling     Total
               Distri  Rentals  Systems               Items
               bution


Gross Sales    64,066    2,569    6,536   73,171               73,171
Intersegment       30        4       59       93                   93
---------------------------------------------------------------------
Net Sales      64,036    2,565    6,477   73,078          -    73,078

Interest
 Expense        (977)    (157)     (62)  (1,196)              (1,196)
Segment
 profit
 (loss)         3,615     (90)    (137)    3,388  (1,892) (a)   1,496
Amortization
 of capital
 assets
 and rental
 equipment        528      837       80    1,445          6     1,451
Segment
 total assets 144,369   19,388   12,237  175,994    2,795 (b) 178,789
Segment
 capital and
 rental
 assets        16,898   17,076    2,718   36,692         43    36,735
Segment
 capital
 assets held
 for sale       4,227        -        -    4,227                4,227
Capital and
 rental asset
 expenditures      68       11       13       92                   92


               Nine Months Ended September 30, 2004
               Equip-   Equip-   Engin-   Segment   Reconci-  Company
                 ment     ment    eered   Totals        ling    Total
              Distri-  Rentals  Systems                Items
               bution

Gross Sales   224,787    6,488   17,415  248,690              248,690
Intersegment       13        -      187      200                  200
---------------------------------------------------------------------
Net Sales     224,774    6,488   17,228  248,490           -  248,490

Interest
 Expense      (1,753)    (348)    (142)  (2,243)              (2,243)
Segment profit
 (loss)        12,345  (1,404)    (328)   10,613  (3,712) (a)   6,901
Amortization
 of capital
 assets
 and rental
 equipment        847    2,315      222    3,384          12    3,396
Capital and
 rental asset
 expenditures     133       40      136      309                  309


               Nine Months Ended September 30, 2003
               Equip-   Equip-   Engin-   Segment  Reconci-   Company
                 ment     ment    eered    Totals      ling     Total
              Distri-  Rentals  Systems               Items
               bution


Gross Sales   213,964    6,726   18,186   238,876             238,876
Intersegment      225       11      224       460                 460
---------------------------------------------------------------------
Net Sales     213,739    6,715   17,962   238,416         -   238,416

Interest
 Expense      (3,006)    (521)    (219)   (3,746)             (3,746)
Segment profit
 (loss)        10,149  (2,230)    (329)     7,590  (4,417) (a)  3,173
Amortization
 of capital
 assets
 and rental
 equipment      1,408    2,756      240     4,404        17     4,421
Capital and
 rental asset
 expenditures     202       51       21       274                 274

(a) The reconciling items to adjust segment profit (loss) represent common corporate costs not allocated to the segments and corporate head office costs incurred during the period.

(b) The reconciling items to adjust segment total assets includes prepaid expenses and accrued benefit assets carried on the corporate head office ledger, offset by the elimination of the intercompany receivables at the corporate head office.

5. Comparative Consolidated Financial Statements

The comparative interim consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2004 interim consolidated financial statements.

Strongco Inc. (TSX:SQP)