Skyjack Inc. — Capital/Financing Update 2000

Oct 6, 2000

MATERIAL CHANGE REPORT

Reporting Issuer:

Skyjack Inc. 55 Campbell Road Guelph, Ontario N1H 1B9

Date of Material Change:

February 17, 2000

Press Release:

Canada News Wire, Toronto – February 17, 2000

Summary of Material Change:

Skyjack has signed a master amending agreement with its three principal bank lenders. The agreement provides for a waiver of certain non-payment financial covenants contained in the existing loan agreements with the three lenders.

See copy of press release dated February 17, 2000 attached as Schedule “A” hereto.

Full Description of Material Change:

On January 31, 2000, the Company announced by way of press release that Skyjack had breached certain non-payment financial covenants contained in agreements with its lending banks. At such time, the Company reported that the banks were aware of such breach and that Skyjack was working with the banks to resolve the deficiencies.

The master amending agreement (the “Agreement”) was entered into between Skyjack and its three principal bank lenders on February 14, 2000 and specifically provides for a waiver of the technical breach of non-payment financial covenants reported in the January 31, 2000 press release.

Under the Agreement, the lenders agreed to waive certain specified events of default related to the financial covenant breaches. As part of the Agreement, Skyjack agreed, amongst other things, to (i) provide the lenders with detailed financial information (including cash flow projections) to facilitate the development of revised loan covenants for the Company; (ii) proceed with its restructuring program (a copy of which was provided to and approved by the lending banks), and (iii) provide regular reporting to the lenders regarding specified financial information and also to regularly update the lenders on the status of the restructuring program. Under the Agreement, Skyjack was given an opportunity to refinance or restructure its obligations to the lenders, with June 30, 2000 identified as the target date for such arrangements. The loans are repayable on demand and are secured by Company’s assets.

The Agreement provides the Company with the financial flexibility to restructure its business and operations. As part of the restructuring program, the Company intends to focus on its core competence

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of scissor-type aerial work platforms and to exit non-profitable business lines (such as booms) and to close inefficient production facilities.

Reliance on Section 75(3) of the Act:

Not applicable.

Omitted Information:

Not applicable.

Senior Officers:

Edward J. Henderson, Secretary and Treasurer

Statement of Senior Officer:

The foregoing accurately discloses the material change referred to herein

DATED at Guelph this 4th day of October, 2000.

SKYJACK INC.

Per: (signed) “Edward Henderson” Edward J. Henderson Secretary and Treasurer

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r f BC-Skyjack-lenders-deal   02-17 0272

News release via Canada NewsWire, Toronto 416-863-9350  -ME-

    Attention Business Editors:

    ^Skyjack announces agreement with lenders@

    GUELPH, ON, Feb. 17 /CNW/ - Skyjack Inc. (TSE: SJK) today announced the
signing of a master amending agreement providing for a waiver of certain
non-payment financial covenants contained in agreements with its lenders.

    "This agreement provides Skyjack with the support we require to pursue
our strategy to capitalize on the Company's core competencies and return the
Company to profitable growth," said Jos Wintermans, recently appointed
President and CEO.

    Skyjack reported on January 31, 2000 it was in breach of certain
non-payment financial covenants contained in agreements with its lending
banks. Since then, the Company has initiated a number of restructuring
initiatives, including an agreement in principle with Pennsylvania-based Grove
Worldwide LLC, a maker of boom-type elevating devices. The agreement provides
for Skyjack and the Manlift Division of Grove to market, sell and furnish
product support to large North American customers.

    Skyjack has also announced plans to suspend production of boom-type lifts
at its plant in Atlantic, Iowa as part of its strategy to focus on its
world-leading core line of scissor-type aerial platforms. The Company has
additionally disclosed plans to close its axle manufacturing and assembly
plant in Brampton, Ontario, effective March 31, 2000.

    Skyjack Inc. designs and manufactures a complete line of self-propelled
scissor-type elevating work platforms. Skyjack products support workers, tools
and materials in a variety of commercial, industrial and construction
applications requiring access to elevated work areas. The Company's Website
address is www.skyjackinc.com

    %SEDAR: 00000357E

    -0-                           02/17/2000

    /For further information: Jos Wintermans, President & CEO/Ed Henderson,
Secretary-Treasurer - Toll free 1-800-265-2738/
    (SJK.)

CO:  Skyjack Inc.
ST:  Ontario
IN:
SU:

    -30-

CNW 14:01e 17-FEB-00