Brampton Brick Announces Writedown of Goodwill

BRAMPTON, ONTARIO--(Marketwire - Jan. 20, 2009) - Brampton Brick Limited (TSX:BBL.A) announced today that for the fourth quarter and year ended December 31, 2008 it will record a non-cash charge of $6.7 million to write off the remaining carrying value of goodwill. This determination was made following completion of the annual test for impairment as required under Canadian generally accepted accounting principles.

The impact on consolidated net income is estimated to be approximately $6.0 million, or $0.55 per share, which is the net amount after taking into account a reduction in the provision for income taxes of approximately $0.7 million. The weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding is approximately 10,936,000.

The goodwill carried on the Company's consolidated financial statements relates to the Landscape Products business operations acquired in 2002 and includes the concrete products manufacturing plants located in Markham and Milton, Ontario and Wixom, Michigan.

Operating results in these business operations in 2008 have been significantly impacted by negative economic conditions affecting its primary market areas of Ontario and Michigan. Furthermore, given the current economic environment, it is highly possible that these negative conditions may continue for some time before the economy begins to recover to any meaningful degree. Consequently, the Company considered it appropriate to write off the remaining carrying value of goodwill at this time.

Commencing in 2007 and continuing throughout 2008, management has undertaken a number of initiatives to rationalize manufacturing operations, integrate personnel and operating procedures and develop new products. Operating plans for 2009 have been structured to minimize the impact of the cyclical downturn on operating results and cash flows and to position the Company to be able to maximize profitability during the ensuing recovery.

Complete results for the fourth quarter and year ended December 31, 2008 are scheduled to be released on March 10, 2009 following the meeting of the Company's Board of Directors.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including, but not limited to, those identified under "Risks and Uncertainties" in the Company's 2007 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from any future result, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick is Canada's second largest manufacturer of clay brick and manufactures concrete paving stones, retaining walls, garden walls and enviro products in Canada and the U.S. under the Oaks Concrete Products trade name. Products are used for residential construction and for industrial, commercial, and institutional building projects. Da Vinci Stone Craft Ltd., manufactures fireplace surrounds and accessory products. The Company also holds a 50% joint-venture interest in Universal Resource Recovery Inc., which commenced operations in October, 2008 at its newly constructed waste composting facility in Welland, Ontario.