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Eligible Dividend Designation
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, all dividends paid by the Company to Canadian residents on the Company's Class A Subordinate Voting Shares and Class B Multiple Voting Shares after December 31, 2005, are designated as "eligible dividends". Unless stated otherwise, all dividends paid by the Company hereafter are designated as "eligible dividends" for the purposes of such rules.

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  Gary S. Love
Vice President, Finance and CFO

ShawCor Ltd.
25 Bethridge Road
Toronto, Ontario
Canada M9W 1M7

Phone: +1 (416) 744-5818
Fax: +1 (416) 743-9123

E-Mail: glove@shawcor.com
   
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