ADS Announces Results and a Shift in Focus

21 December 2000

ADS inc., a Quebec City company specializing in the production of comosite materials and non-woven technical textiles, announced its results today for the third quarter of 2000. Sales reached $23on for the same period last year. A net loss of $576,000 was recorded in the third quarter, compared with net earnings of $267,000 for the same period in the previous year. The drop in earnings compared with the same period in the previous year is mainly explained by two factors. First, a lower rate of production of buses of one customer led to a significant reduction in composite materials sales. In addition, the continued migration of the North American shoe industry to Asia has translated into decreased sales of technical textiles. The marketing of new value-added products in the technical textiles sector and the addition of new customers in the composite materials sector will gradually allow the shortfall to be absorbed. "We intend to make a major shift in focus to adapt to the new market conditions," stated Paul Drouin, Chairman of the Board and CEO. "Early in the new year, we will announce the main thrusts of our strategy to benefit from new opportunities in our business sectors, diversify our source of contracts and reduce our fixed costs." ADS inc. is a company involved primarily in the manufacturing sector through subsidiaries operating in the field of technical textiles and composite materials.

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