5th Acquisition within 18 Months in the Water Treatment Segment

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GL&V Acquires the COPA Water British and Australian Subsidiaries from Public Company CDS Technologies

 GL&V acquires additional and complementary products and technologies for the stormwater and municipal wastewater markets, including the exclusive licence to market the Kubota membrane (MBR) in the municipal, commercial and industrial wastewater treatment segments in the UK and Republic of Ireland.

 This acquisition will bring additional revenues of approximately $60 million annually to GL&V’s Water Treatment Group.

 It broadens the Water Treatment Group’s international positioning, by providing an established position in the Australian municipal wastewater market.

Montreal, Canada, October 16, 2006 – [Note: All amounts are expressed in Canadian dollars unless otherwise indicated.] GROUPE LAPERRIÈRE & VERREAULT INC. (“GL&V” or “the Company”; ticker symbols GLV.A, GLV.B/TSX) is pleased to announce that it has acquired from CDS Technologies Limited (“CDS Technologies”), a holding company listed on the Australian Stock Exchange, all of the share capital of its COPA Water subsidiaries specializing in wastewater treatment solutions, namely COPA Limited (“COPA UK”) located in the United Kingdom and COPA WATER Pty Ltd (“COPA AUSTRALIA”) located in Australia. The transaction was completed for a cash consideration of $21 million, subject to certain adjustment clauses. The acquisition is financed using GL&V’s available credit facilities.

This acquisition is the fifth to be completed by GL&V’s Water Treatment Group (Eimco Water Technologies) within the past 18 months, and the second since the beginning of fiscal 2007 after that of Enviroquip Inc., on June 30, 2006. It will provide the Water Treatment Group with additional revenues of approximately $60 million on an annualized basis, as well as approximately 140 employees working primarily in sales and engineering. COPA AUSTRALIA operates a sales and engineering office, whereas COPA UK operates a similar office along with an assembly plant. COPA Water also has licensees strategically located around the world.

Founded in 1994, CDS Technologies, through COPA Water has developed and brought to market a diverse range of equipment and processes designed for various stormwater management and wastewater treatment applications. These products have gained market recognition for their innovative engineering and superior reliability. In addition, COPA UK holds the exclusive licence for the Kubota Submerged Membrane (MBR) for the municipal, commercial and industrial wastewater treatment markets in the UK and Republic of Ireland.

As part of the Enviroquip acquisition earlier this year, GL&V acquired the exclusive licence to market the Kubota membrane in the U.S. municipal wastewater market, which gave GL&V exclusive rights to this technology in the whole of North America, the Company having held the exclusive licence in Canada since 2004. The Company also holds a non-exclusive licence with the Japanese multinational for the municipal market in India. The submerged membrane wastewater treatment process is increasingly in demand by municipalities and is experiencing faster growth than the water treatment industry as a whole.

Richard Verreault, President and Chief Operating Officer of GL&V, indicated that in addition to a significant source of revenue growth and qualified personnel, the acquisition of the COPA Water companies provides the Water Treatment Group with considerable strategic benefits. “First, it meets one of Eimco Water Technologies’ primary objectives, which is to acquire the intellectual proprietary rights to advanced technologies that are complementary to our existing wastewater treatment solutions, thereby expanding our offering across the process flowsheet for global supply. Further, this acquisition strengthens our relationship with Kubota, increases our know-how in submerged membrane technology, and will allow us to build synergies among our sales teams in North America, India and the United Kingdom. Finally, it expands our Water Treatment Group’s geographic coverage in Australia and New Zealand while building its presence in the United Kingdom. These markets offer significant growth potential given their environmental legislation and government programs.”

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