2004, A Year of Many Changes for Bestar Inc.

LAC-MEGANTIC, Quebec -- Bestar Inc. (TSX:BES) earnings for the fiscal year ending December 31, 2004 totalled $43,728,000, a decrease of 1.25% compared to $44,282,000 for the fiscal year ending December 31, 2003. As stated by Mr. Martin Lamontagne, Chief Financial Officer, "this constitutes stabilization of our earnings following three years of constant and significant decrease. In addition, this mild reduction is related to a delayed and uncompensated sales transaction with one of our major clients, as already described in the closing report of the second quarter of year 2004.Implementation of a joint management supply system with this client protects us from recurrence of this situation. In turn, we have succeeded in increasing our sales volume with other clients, therefore allowing us to partially recover the loss."

E[acute accent]Losses before other items and income taxes for 2004 fiscal year are$2, 254, 000 in comparison to $1,634,000 for 2003.Again, as stated by Mr. Lamontagne, "one must bear in mind, that for an almost equivalent sales volume, the various actions taken in the course of 2004 brought about a decrease in the cost of products sold and operating costs of $1,391,000 when compared with 2003.However, restructuring costs of$1,386,000 in 2004, representing a sum of $1,111,000 over 2003 and a mere $69,000 foreign exchange gain, representing $700, 000 less than in 2003, deprived us of cost reduction benefits."

E[acute accent]Net loss for the fiscal year ended December 31, 2004 stands at $442, 000 or $(0.04) per share in comparison with a net profit of $254 000 or $0.02 per share for the 2003 fiscal year. Mr. Lamontagne adds that, "in 2004, investment income of $1,275,000 originating from a private investment in Panomeg Inc. reduced the loss, while in 2003, a gain on derivative financial instruments of$2,034,000 impacted on net earnings. One must take into account that there were 13, 038, 083 outstanding common shares at the end of 2004 in comparison to 11,088,083 at the end of 2003."

E[acute accent]FOURTH QUARTER

E[acute accent]Revenue for the fourth quarter totalled $ 9,670,000 compared with $ 10,512,000 for the same period ended December 31 2003.

E[acute accent]Losses before other items and income taxes are in the amount of $1,204, 000 for the fourth quarter ended December 31, 2004, compared to profits before other items and income taxes of $11,000 for the same period in 2003. Net loss for the fourth quarter of 2004 stands at $894,000 or $(0.07) per share, while net loss for the fourth quarter of 2003 was $10,000 or $(0.00) per share. Mr. Lamontagne explains that, "a restructuring charge of $944,000 is the main factor contributing to losses in the fourth quarter of 2004."

E[acute accent]Important Changes During the 2004 Fiscal Year

E[acute accent]In terms of events to be considered for the 2004 fiscal year, February brought about the appointment of Mr. Jacques Hetu as President and Chief Executive Officer. Along with him came Mr. Martin Lamontagne and Pierre-Yves Simard, two business re-engineering experts.

E[acute accent]Additional funds from a private investment of $975,000, a non-secured debenture of $975, 000 and a loan totalling $1,500,000 (of which $500,000 went for cash flow, while $1,000 000 is still available for future investment projects) were injected into the operations. An agreement was reached concerning long term financing of the Company.

E[acute accent]Restructuring of the workforce was completed while the sales office located in Saint-Hubert, on Montreal's south shore, was closed and sub-leased, resulting in the consolidation of all operating activities in Lac-Megantic.

E[acute accent]Outlook

E[acute accent]According to Mr. Lamontagne, "one must also take into account that all actions taken towards structural reorganisation are taken very seriously. Implementation of new client approach methods, the reengineering of operational procedures, the introduction of new performance indicators and the establishment of independent work teams has proven to be hard work but, management is convinced that these measures will make Bestar more competitive.

E[acute accent]Finally, the weakening of the US dollar along with the perspective of a persisting or worsening situation has encouraged us, as of December 2004, to review our costs structure. The purpose of this operation was to help us maintain an acceptable profitability level as well as assure the Company's future," concludes Mr. Lamontagne.

Operating Results Summary

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(Results in thousands of dollars, except earnings per share)

                                  Q1      Q2      Q3      Q4   Total

Revenue(i)            2002    15,069  11,679  12,464  12,715  51,927
                      2003    12,211  10,285  11,274  10,512  44,282
                      2004    11,403   9,895  12,760   9,670  43,728

Net earnings (loss)   2002        78    (447) (1,087) (1,888) (3,344)
                      2003     1,095    (443)   (388)    (10)    254
                      2004      (246)   (652)  1,350    (894)   (442)

Earnings (loss) per
 common share         2002      0.01   (0.04)  (0.10)  (0.17)  (0.30)
                      2003      0.10   (0.04)  (0.03)  (0.01)   0.02
                      2004     (0.02)  (0.06)   0.10   (0.07)  (0.04)

Fully diluted
 earnings (loss) per
 common share         2002      0.01   (0.04)  (0.10)  (0.17)  (0.30)
                      2003      0.10   (0.04)  (0.03)  (0.01)   0.02
                      2004     (0.02)  (0.06)   0.10   (0.07)  (0.04)

Total Assets          2002    37,588  38,372  37,000  37,582  37,582
                      2003    34,814  33,084  31,034  30,722  30,722
                      2004    30,507  29,987  29,515  28,228  28,228

Total Liabilities     2002    21,173  22,404  22,119  24,589  24,589
                      2003    20,726  19,438  17,777  17,475  17,475
                      2004    17,506  16,479  14,774  14,256  14,256

Weighted average of
 outstanding shares
 (in thousands)       2002    11,088  11,088  11,088  11,088  11,088
                      2003    11,088  11,088  11,088  11,088  11,088
                      2004    11,088  11,738  13,038  13,038  12,231

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(i) In conformity with new accounting standards, transportation
    earnings are hereafter presented in the Revenue item.
    Comparative figures have been reclassified to reflect the
    consequences of this modification.

E[acute accent]Company Profile

E[acute accent]Established in 1948, Bestar Inc. is involved in the design, manufacturing and distribution of a wide range of models of ready-to-assemble furniture and furnishings that meet consumer needs in terms of quality, design and functional requirements.

E[acute accent]The Company which has been public since 1986, carries out its operations frommanufacturing facilities located in Lac-Megantic.

E[acute accent]Disclosure

E[acute accent]This press release may contain prospective information and declarations on the future performance of the Company. These declarations are based on suppositions and uncertaintiesand the best possible evaluation of future events by management and are subject to certain risk factors such as fluctuating exchange rates, increasing Asian competition and increases in costs of raw materials and transportation.

E[acute accent]Information for Shareholders

E[acute accent]Shareholders can obtain information regarding this press release by accessing the CDN news file at www.ccnmatthews.com or on SEDAR at www.sedar.com. The Management report and completed Financial Statements for the 2004 fiscal year, as well as all other regulatory documents, will be submitted, at the latest, March 31 2005, through the SEDAR database at www.sedar.com.

E[acute accent]Meeting of Shareholders

E[acute accent]The Annual Meeting of Shareholders of Bestar Inc will be held on Friday, May 6, 2005 at 1:30 p.m., at the Motel Le Quiet, 3284 Laval Street in Lac-Megantic.

E[acute accent]Bestar Inc. (TSX:BES)