Bestar Inc.: First Quarter of 2005 Results and Appointment of a New Vice-President Finances.

LAC-MEGANTIC, Quebec -- Bestar Inc. (TSX:BES) -

Gross revenue for the quarter ended March 31, 2005 totalled C$9,948,000, a decrease of 12.8% compared with C$11,403,000 for the same period last year.

"A gap in the launch date of new products between 2004 and 2005 is the main reason for the decrease in sales for the first quarter" explains Mr. Jacques Hetu, Chief Executive Officer of Bestar.

"We are intensively engaged in the process of developing new products. These should be available on the market in the fall of 2005. We areaiming at widening our range of product selection as well as offering more diversity, such as storage space units.We are also working on small multi-functional furniture." continues Mr. Hetu.

The loss before income taxes on benefits reaches C$125,000 for the first quarter of 2005, compared with C$361,000 for the same period in 2004.

"This shows an improvement of more than 65%, despite a decrease in sales. These results confirm organizational choices made by Bestar management throughout 2004. The revision of our costs structure, prompted by the Company's financial situation and the fall of the US dollar, has led to a decrease ofmore than 50% of direct and indirect labour costs. This difficult process, along with a sustained effort aimed at improving inventory control, has enabled us to reduce our total inventory by more than 30% since March 31, 2004. All of these measures have contributed in making Bestar more competitive, which was our main goal in 2004." adds Bestar's CEO.

Concerning the net loss for the first quarter, it is in the amount of C$107,000, or C$(0.01) per share, an improvement of more than 56% when compared with the net loss of C$246,000, or C$(0.02) per share, for the same quarter in 2004.

In addition, during the course of the first quarter, Bestar has initiated the implementation of a new integrated management system (ERP).

"This project, inspired by the utmost in business practices, will enable us to pursue the revision of all of our business procedures thereby increasing our efficiency." concludes Mr. Hetu.

Following changes in Toronto Stock Exchange (TSX) rules regarding the maximum duration of warrants issued by listed issuers and in accordance with the agreement the company has signed with Investissement Quebec on November 7, 2003, Bestar Inc. (BES) announces that the expiry date of the warrants issued to Investissement Quebec will be changed from November 7, 2008 (5 years) to November 7, 2013 (10 years). This amendment will become effective on June 1, 2005. The warrants give Investissement Quebec the right to purchase 230,769 common shares at a price of C$0,65 per share. Investissement Quebec is not an insider of Bestar Inc.

Bestar also announces the appointment of Mr. Eric A. Menard, CMA, MBA to the position of Vice-President of Finances. Mr. Martin Lamontagne, CMA, acting Chief Financial Officer, will continue to be a part of Bestar's general management team.

Interim Results Summary

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


                                 Q1       Q2      Q3      Q4    Total

Revenue(i)           2003    12,211   10,285  11,274  10,512   44,282
                     2004    11,403    9,895  12,760   9,670   43,728
                     2005     9,948

Net earnings (loss)  2003     1,095     (443)   (388)    (10)    254
                     2004      (246)    (652)  1,350    (894)   (442)
                     2005      (107)

Earnings (loss) per
 common share        2003      0.10    (0.04)  (0.03)  (0.01)   0.02
                     2004     (0.02)   (0.06)   0.10   (0.07)  (0.04)
                     2005     (0.01)

Fully diluted
 earnings (loss)
 per common share    2003      0.10    (0.04)  (0.03)  (0.01)   0.02
                     2004     (0.02)   (0.06)   0.10   (0.07)  (0.04)
                     2005     (0.01)

Total Assets         2003    34,814   33,084  31,034  30,722  30,722
                     2004    30,507   29,987  29,515  28,228  28,228
                     2005    28,215

Total Liabilities    2003    20,726   19,438  17,777  17,475  17,475
                     2004    17,506   16,479  14,774  14,256  14,256
                     2005    14,281

Weighted average of
 outstanding shares
 (in thousands)      2003    11,088   11,088  11,088  11,088  11,088
                     2004    11,088   11,738  13,038  13,038  12,231
                     2005    13,038

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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.

Corporate Profile

Founded in 1948, Bestar Inc. designs, manufactures, and distributes a vast array of furniture and ready-to-assemble furnishings that meet customer needs in terms of quality, design, and functionality.

The company was incorporated in 1986 and operates from its plant in Lac-Megantic.

Release Declaration

This press release may contain information and declarations on the future performance of the company that are by nature speculative. These declarations are based on suppositions and uncertainties and the best possible evaluation of future events by management, and are subject to certain risk factors such as exchange rates, the growth of Asian competitors, and raw materials and shipping cost increases.

Shareholder Information

The management report and comprehensive financial statements as well as all other regulatory documents will be available no later than Monday, November 1, 2004, through the SEDAR database at www.sedar.com and on our website at www.bestar.ca.

Bestar Inc. (TSX:BES)