NEWS RELEASE

FOR IMMEDIATE RELEASE

DATE: Monday, May 11, 2009

St. Thomas Holding Inc positioned to respond to a new electricity industry in Ontario

St. Thomas Holding Inc., wholly owned by the City of St. Thomas, and the owner and operator of St. Thomas Energy Services Inc. (STESI), announced today that it has entered into a mutually beneficial agreement to purchase the shares of Tal Trees located in Belleville, Ontario.

Tal Trees specializes in engineering services and site reviews, the construction of high voltage substations, maintenance of substation/transformers and overhead line construction and maintenance. They also provide high voltage emergency services and have recently been involved in wind/solar initiatives.

The partnership with Tal Trees will continue to position STHI and its’ group of companies as leaders in building a new economy in the renewable energy sector, a distinctive and competitive benefit to the City of St. Thomas and their shareholders. It will also provide vital and strategic geographic and economic access to markets in Eastern Ontario.

“Our decision to purchase Tal Trees is part of our longer-term strategy to become a leader in an industry that is experiencing significant changes,” says Brian Hollywood, President and CEO of St. Thomas Energy Services Inc. “The Green Energy Act is the most significant change the industry has seen in more than 100 years. With this new partnership, we’re well poised to take advantage of emerging opportunities.”

Tal Tree partners Arnold and John Portt see the new partnership as an exciting step for the company they founded in 1989 to make. “Entering a partnership with a municipally-owned company that has shown such innovation provides our employees with new opportunities and improved job security,” says Arnold Portt, President of Tal Trees. “By leveraging our customer relationships and technical expertise with those of STESI, Tiltran Services and Lizco Sales, the scale of work we will be able to compete for and be involved in will increase exponentially. We’re incredibly excited by what lies ahead.”

In November 2007, STESI purchased the shares of Tiltran Services and Lizco Sales near the Town of Tillsonburg, the first transaction of its size in Ontario involving a municipally-owned utility company purchasing a competitive, privately-owned services company. “With this second share purchase, our City Council has once again shown progressive leadership in creating new business development opportunities and synergies for the municipality. Together, we’re putting St. Thomas on the map as leaders in this emerging sector. We’re developing a new area of economic focus.”

Under the terms of the deal, the transaction will be completed on July 2, 2009.

St. Thomas Energy Inc. customers will not see rates increase as a result of this purchase. The City of St. Thomas, as the shareholder of STHI, is excited by the value this acquisition will bring to the citizens of St. Thomas and the continued growth of its enterprise.

News Release (pdf)
Fact Sheet (pdf)
Q & A Sheet (pdf)

St. Thomas Energy Services Inc.
135 Edward Street
St. Thomas, Ontario
N5P 4A8

TEL: (519) 631-5550
FAX: (519) 631-4771

EMAIL: contact@stesi.ca