Norwall Group Inc. - First default status report

BRAMPTON, ON, Sept. 16 /CNW/ - Norwall Group Inc. (the "Company") (TSX:NGI) is providing this first bi-weekly default status report in accordance with National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). In its initial default announcement of September 2, 2009 (the "Default Notice"), the Company announced that it had not filed its interim financial statements for the period ended June 30, 2009 (the "Second Quarter Financial Statements") and its management's discussion and analysis (the "MD&A") relating to the Second Quarter Financial Statements (collectively, the "Required Filings") on or before the prescribed deadline of August 31, 2009 .

As previously announced, the Company is experiencing delays in completing the Required Filings since the CFO, due to illness, is currently unable to devote the necessary time and effort to prepare and finalize the Required Filings and there is a lack of other immediately available and capable accounting staff at the office. The Company continues to expect to file the Required Filings by October 15, 2009 , by which time the Company will have in place the necessary human resources to finalize the Second Quarter Financial Statements and related MD&A for filing.

As previously announced, the Company made an application with the applicable securities regulators under National Policy 12-203 requesting that a Management Cease Trade Order be imposed in respect of the default of the filing requirements set out above. The Management Cease Trade Order was granted on September 2, 2009 .

The Company reports that since the Default Notice: (i) there is no material change to the information set out in the Default Notice that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.

The Company will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases so long as it remains in default of the filing requirements set out above.

About Norwall

Norwall manufactures quality residential wallpapers and borders and distributes them to thousands of home centres, specialty stores and mass merchants in Canada and through its wholly-owned operating subsidiary, Patton Wallcoverings, in the United States .

Forward-looking Statements

Certain statements included in this release contain words such as "could", "expects", "expectations", "may", "anticipates", "believes", "intends", "estimates" and "plans" (and similar expressions) and constitute "forward-looking statements" within the meaning of applicable securities law. These statements are based on Norwall's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Norwall and its subsidiaries operate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which are difficult to predict and may cause the actual results, performance or achievements of Norwall, or outcomes or results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, such factors which are described in Norwall's management's discussion and analysis of operations and other filings with Canadian regulatory authorities. These statements, although considered reasonable by Norwall at the date of this press release, may prove to be inaccurate and consequently Norwall's actual results could differ materially from its expectations as set out or implied in this release. Unless otherwise required by applicable securities laws, Norwall disclaims any intention or obligation to update or revise any forward-looking statements.

For further information: [phone], James J. Patton, President and Chief Executive Officer, [email protected]; Edward Diochon, Vice President of Finance, [email protected]