K-Bro Selected as Preferred Provider to 3sHealth

(TSX: KBL)

EDMONTON, May 29, 2013 /CNW/ - K‐Bro Linen Inc. ("K‐Bro" or the "Corporation") announced that it has been informed by Health Shared Services Saskatchewan ("3sHealth") of its intention to enter into negotiations with K‐Bro for a long‐term contract to service laundry and linen requirements in Saskatchewan.  This is a result of K‐Bro being selected pursuant to 3sHealth's Request for Strategic Partner ("RFSP") process that commenced in 2012.

3sHealth and K-Bro intend to enter into discussions for a long-term services contract and upon the conclusion of successful negotiations and agreement on commercial terms, the Corporation will commence the planning and construction of a processing facility in the province of Saskatchewan.

"We are very pleased to be selected as the preferred provider to negotiate a long‐term contract with 3sHealth," said Linda McCurdy, President & CEO. "It is very satisfying to be successful in a competitive process and have the opportunity to develop our relationship with 3sHealth. We wish to thank 3sHealth for their confidence in K‐Bro and we look forward to working through the contract negotiations with them."

3sHealth was created in 2012 with a mandate to provide efficient, customer-focused, quality, province-wide common services to the Saskatchewan health sector to and on behalf of the regional health authorities and the Saskatchewan Cancer Agency.

CORPORATE PROFILE

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts.  K-Bro currently operates eight processing facilities under three distinctive brands, including K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies Dextraze, in seven Canadian cities: Québec City, Montréal, Toronto, Edmonton, Calgary, Vancouver and Victoria.

Additional information regarding the Corporation including required securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators' website at www.sedar.com; the System for Electronic Document Analysis and Retrieval ("SEDAR").

---

K-Bro est le plus important propriétaire et exploitant de buanderies au Canada. K-Bro fournit une gamme étendue de services de buanderie aux établissements de soins de santé, hôtels et autres clients commerciaux. K-Bro exploite actuellement huit usines sous trois marques distinctives, incluant K-Bro Linen Systems Inc., Buanderie HMR et Les Buanderies Dextraze, dans sept villes canadiennes: Québec, Montréal, Toronto, Edmonton, Calgary, Vancouver et Victoria.

Vous pouvez obtenir des renseignements supplémentaires sur la Société, y compris les documents déposés auprès des autorités de réglementation, sur notre site Web, au www.k-brolinen.com et sur le site Web des autorités canadiennes en valeurs mobilières au www.sedar.com, le site Web du Système électronique de données, d'analyse et de recherche (« SEDAR »).

FORWARD LOOKING STATEMENTS

This news release contains forward-looking information that represents internal expectations, estimates or beliefs concerning, among other things, future activities or future operating results and various components thereof. The use of any of the words "anticipate", "continue", "expect", "may", "will", "project", "should", "believe", and similar expressions suggesting future outcomes or events are intended to identify forward-looking information.  Statements regarding such forward-looking information reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to inherent risks and uncertainties, which could cause K-Bro's actual performance and financial results in future periods to differ materially from the forward-looking information contained in this news release.  These risks and uncertainties include, among other things, (i) risks associated with acquisitions, including the possibility of undisclosed material liabilities; (ii) K-Bro's competitive environment; (iii) utility and labour costs; (iv) K-Bro's dependence on long-term contracts with the associated renewal risk, (v) increased capital expenditure requirements; (vi) reliance on key personnel; and (vii) the availability of future financing. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: (i) volumes and pricing assumptions; (ii) utility costs; (iii) expected impact of labour cost initiatives; and (iv) the level of capital expenditures. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.  Certain statements regarding forward-looking information included in this news release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this news release.

All forward-looking information in this news release is qualified by these cautionary statements.  Forward-looking information in this news release is presented only as of the date made. Except as required by law, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

SOURCE: K-Bro Linen Inc.

Linda McCurdy
President & Chief Executive Officer

Chris Burrows
Vice-President & Chief Financial Officer

K-Bro Linen Inc.  (TSX: KBL)
Phone: [phone] 
Email: [email protected]
Web: www.k-brolinen.com