BESTAR: Announce Potential Layoff by Fall 2010

LAC-MÉGANTIC, QUÉBEC--(Marketwire - July 2, 2010) - Bestar Inc. (CNSX:BES) - The deterioration of sales during the second quarter continues to affect the results of Bestar. The direction is not foreseeing any sensitive improvement of sales before a few months and immediate measures must be taken.

A general meeting was convened on June 30th to explain the stakes to all the employees. During this meeting Bestar direction's asked for the early opening of the collective agreement to negotiate changes in the working conditions which would contribute to improve in the short-term the profitability of the company. Considering the market uncertainty, the employees received a notice concerning the possibility of a collective dismissal by fall 2010.

Corporate Profile

Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality. During the last years Bestar has specialized in office furniture and since 2006 added the fabrication of components which are both mainly distributed in the United States and Canada.

The company became public in 1986 and operates from its plant in Lac-Mégantic, Québec, Canada.

Bestar's common shares are listed on the Canadian National Stock Exchange (CNSX) under the symbol (BES)