CVTECH GROUP INC. REPORTS RESULTS FOR THIRD QUARTER 2010

• Consolidated revenues up 24.5%
• Consolidated EBITDA up 18.0%
• Sound financial position with an increase in cash and a reduction of long-term debt
• Order backlog of $372 million as at September 30, 2010

DRUMMONDVILLE, QC, Nov. 12 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today reported results for its third quarter ended September 30, 2010. All amounts are in Canadian dollars unless otherwise indicated.

Consolidated revenues were $55.5 million, an increase of $10.9 million, or 24.5%, from $44.6 million in the third quarter of 2009. This improvement reflects a contribution of $17.1 million from the operations of Riggs Distler & Company, Inc. ("Riggs Distler"), compared to a contribution of $10.6 million over a 72-day period in the third quarter of 2009. Consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA") were up 18.0% to $5.9 million, or 10.7% of revenues, in the third quarter of 2010 from $5.0 million, or 11.2% of revenues, in the third quarter of 2009. CVTech's net earnings were $2.1 million or $0.03 per diluted share, compared to $1.8 million or $0.03 per diluted share a year earlier. As at September 30, 2010, the Corporation's order backlog was approximately $372 million.

EBITDA for the third quarter of 2010 included approximately $1.0 million related to revenues from a large contract that could not be recorded in the fourth quarter of 2009, but for which the Corporation had incurred costs in order to carry out the contract.

Financial highlights		Quarters ended September 30		Nine months ended September 30
(in thousands of dollars, except per-share data)		2010	2009	2010	2009
Revenues		55,479	44,556	190,191	98,390
EBITDA		5,916	5,012	17,860	9,431
Net earnings for the period		2,083	1,821	6,435	3,100
	Per share - basic ($)	0.03	0.03	0.09	0.05
	Per share - diluted ($)	0.03	0.03	0.09	0.05
Weighted average number of shares outstanding (basic, in thousands)		73,020	69,877	72,817	60,357

SEGMENT RESULTS
Revenues of the Energy segment were up 25.6% to $51.3 million in the third quarter of 2010 from $40.8 million a year earlier. The increase of $10.5 million reflects revenues of $17.1 million from Riggs Distler's operations, compared to revenues of $10.6 million over a 72-day period in the third quarter of 2009. On an internal basis, revenues were up $4.0 million or 13.1%, as a result of numerous contracts obtained in recent quarters by subsidiaries of the Corporation. EBITDA of the Energy segment for the third quarter of 2010 was $5.4 million, or 10.6% of revenues, compared to $3.9 million, or 9.5% of revenues, in 2009.

Revenues of the CVT systems and related products segment were $4.2 million in the third quarter of 2010, compared to $3.8 million in the corresponding quarter of last year. The increase was due to a slight gain in activity in target markets as a result of a gradual improvement in the economy and to an increase in market share after one of CVTech's main U.S. competitor ceased its operations. Mainly because of unfavourable exchange rate movements, EBITDA for the segment was $493,000, or 11.7% of revenues, compared to $1.2 million, or 30.8% of revenues, in the second quarter of 2009, when an unrealized gain of $847,000 on a future contract was recorded.

As at September 30, 2010, CVTech's balance sheet remained sound. Cash was $10.8 million, up from $8.9 million three months earlier. Long-term debt, including the current portion, was $40.8 million, down from $41.4 million at the end of the previous quarter. The ratio of long-term debt to equity was 0.59 at September 30, 2010, compared to 0.60 at June 30, 2010.

"For a third consecutive quarter, CVTech has posted a sequential increase in its EBITDA margin," said André Laramée, President and Chief Executive Officer of CVTech. "This improvement reflects improved integration of our North American operations in the Energy segment. In addition, the CVT systems and related products segment would have shown solid progress in profitability had it not been for unfavourable exchange rate movements."

NINE-MONTH RESULTS
For the nine months ended September 30, 2010, consolidated revenues were $190.2 million, up $91.8 million, or 93.3%, from $98.4 million in the nine months ended September 30, 2009. Energy segment revenues were $174.8 million compared to $85.1 million a year earlier, including a $58.6-million contribution from Riggs Distler's operations compared to a $10.6-million contribution over a 72-day period in the third quarter of 2009. Revenues of the CVT systems and related products segment were $15.4 million, up from 16.3% a year earlier.

Consolidated EBITDA was $17.8 million, or 9.3% of revenues, up from $9.4 million, or 9.6% of revenues, in the year-earlier period. Net earnings for the nine months were $6.4 million, or $0.09 per diluted share, compared to net earnings of $3.1 million, or $0.05 per diluted share, a year earlier.

OUTLOOK
"In the Energy segment, the awarding of contracts in the U.S. remains closely linked to project financing under the economic stimulus plan, which has been marked by some delay in the deployment of funds for projects sponsored by the Department of Energy. This delay is partly responsible for the decrease in our order backlog relative to the previous quarter. Our subsidiaries remain active and their favourable competitive position should enable us to benefit from business opportunities as they arise. In the CVT and related systems segment, new discussions have allowed us to update our project to supply CVTs to Tata Motors. We are aware, however, that a business agreement will have to be reached shortly in order for the project to materialize. Finally, on the strength of our steadily improving balance sheet, CVTech is pursuing its search for a strategic acquisition meeting its strict selection criteria," Mr. Laramée concluded.

OVERVIEW OF THE CORPORATION
CVTech is a management company operating in two major sectors. Through Thirau ltée and its subsidiary Thirau LLC, the Corporation provides services to the electric power industry for the construction and maintenance of transmission and distribution lines primarily in Quebec and the eastern United States. Thirau ltée's subsidiary, J.J.L. Déboisement inc. specializes in control of vegetation surrounding power lines and in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs Distler & Company, Inc. is a leading provider of maintenance and construction services to the utility and heavy industrial markets. In the CVT systems and related products segment, the Corporation, through CVTech-IBC Inc., designs, manufactures and sells continuously variable power transmission systems, or CVTs. CVTech-AAB specializes in rebuilding crankshafts and cylinders and in distributing engine parts.

NON-GAAP MEASURE
EBITDA is a measure that has no standardized meaning prescribed by Canadian generally accepted accounting principles and is thus considered to be a non-GAAP measure. Therefore, this measure may not be comparable to similar measures presented by other issuers. This measure is described and presented in this release in order to provide additional information regarding the Corporation's liquidity and its ability to generate funds to finance its operations.

FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management has no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.

Further information regarding CVTech is available in the SEDAR database (www.sedar.com) and on the Corporation's website at: www.cvtech.ca.

%SEDAR: 00021045EF

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