Raymor Announces Closing of the Private Placement in the Aggregate Amount of $1,248,861 and Files Second Default Status

MONTREAL, QUEBEC, May 19 (MARKET WIRE) --
Raymor Industries Inc. ("Raymor") (TSX VENTURE: RAR) is pleased to
announce that it has closed its previously announced private placement in
the aggregate amount of $1,248,861. The proceeds will be used to finance
Raymor's restructuring plan, to pay outstanding debts and for working
capital purposes.

The private placement consists of the issuance of secured convertible
debentures. Each debenture, bearing an annual interest rate of 25%, will
mature two years from its issuance and will be convertible at the
holder's discretion into units of Raymor at a conversion price of $0.05
per unit for an initial period of 12 months and thereafter at the price
of $0.10 for an additional period of 12 months (the "Conversion Price").
Each unit will be comprised of one common share and one common share
purchase warrant. Each common share purchase warrant will entitle the
holder thereof to purchase one additional common share of Raymor at the
price of $0.10 per common share for an initial period of 12 months and
thereafter at the price of $0.15 per common share for an additional
period of 12 months. Raymor may also, at its discretion, force the
conversion of the debentures at the Conversion Price if the common shares
of Raymor trade on the TSX Venture Exchange (the "Exchange"), for a
period of more than 20 consecutive days, at the price of $0.20 or more
during the first year and at the price of $0.40 or more during the second
year. The debentures may also be converted by Raymor at the Conversion
Price upon maturity of the debentures. The interest on the debentures
will be capitalized and may be payable in common shares of Raymor,
subject to shares for debt provisions of the Exchange and the approval of
the Exchange. The debenture offering is subject to the final approval of
the Exchange.

Raymor also provides its second bi-weekly Default Status Report under
National Policy 12-203 - Cease Trade Orders for Continuous Disclosure
Defaults, pursuant to which Raymor announced that the filing of its
audited financial statements, management's discussion and analysis
("MD&A") and related CEO and CFO certifications for the year ended
December 31, 2008 will be delayed beyond the statutory deadline of March
31, 2009. Raymor announces that its financial statements, MD&A and
related CEO and CFO certifications for the first quarter ended March 31,
2009 will not be filed by the statutory deadline of May 30, 2009. Raymor
currently expects that its audited financial statements and MD&A for the
year ended December 31, 2009 will be completed by July 15, 2009 and that
its financial statements and MD&A for the first quarter ended March 31,
2009 will be completed as soon as possible thereafter. Raymor reports
that since announcing the original Notice of Default on April 27, 2009,
except as stated herein, there have not been any material changes to the
information contained therein; nor any failure by Raymor to fulfill its
intentions as stated therein with respect to satisfying the provisions of
the alternative information guidelines, and there are no additional
defaults or anticipated defaults subsequent to such announcement.
Further, there have been no additional material changes respecting Raymor
and its affairs. Raymor intends to file its next Default Status Report by
May 29, 2009.

Caution regarding forward-looking statements

Certain statements contained in this release contain forward-looking
statements. When used in this document, the words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions may be used to identify forward-looking
statements. Those statements reflect Raymor's current views with respect
to future events or conditions, including prospective results of
operations, financial position, and predictions of future actions, plans
or strategies. Certain material factors and assumptions were applied in
drawing Raymor's conclusions and making those forward looking statements.
By their nature, those statements reflect management's current views,
beliefs and assumptions and are subject to certain risks and
uncertainties, known and unknown, including, without limitation, the
possibility that Raymor may not satisfy all conditions to obtain the
final approval of the Exchange in connection with the offering, including
allowing the issuance of common shares in lieu of cash payment of
interest, the timing of filing of the Raymor's audited financial
statements, MD&A and related CEO and CFO certifications for the year
ended December 31, 2008 and for the first quarter ended March 31, 2009,
and the timing of filing of default status reports. Many factors could
cause Raymor's actual results, performance or achievements to be
materially different from any future results, performance or achievements
that may be expressed or implied by these forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should
the assumptions underlying Raymor's projections or forward-looking
statements prove incorrect, Raymor's actual results may vary materially
from those described in this press release as intended, planned,
anticipated, believed, estimated, or expected. Unless otherwise required
by law, Raymor does not intend or does not assume any obligation to
update these forward-looking statements whether as a result of new
information, plans, events or otherwise.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephane Robert, President

Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.

Contacts:
Investor Relations
450-434-1004
450-434-1200 (FAX)
investor@raymor.com

Media Relations
media@raymor.com

FOR MORE INFORMATION ON RAYMOR INDUSTRIES,
A NANOTECH 100 COMPANY,
PLEASE VISIT: http://www.raymor.com

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