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Resin Systems and Huntsman Polyurethanes Sign Strategic Partnering Agreements

20 April 2001


Resin Systems Inc announced a wide ranging contractual relationship with Huntsman Polyurethanes. RSI and Huntsman Polyurethanes have signed an initial 5 year License Agreement in addition to a Chemical Supply and Manufacturing Agreement. The two companies will jointly commercialize, on an exclusive basis, opportunities in the rapidly emerging market for polyurethane and polyisocyanurate based resins in the U.S., Canada and Mexico. The U.S. market alone has overall resin sales in excess of US $9 billion. RSI will have the exclusive right to sell and market all existing and future products, owned or developed by the parties, as they relate to the pultrusion and filament winding industries. These agreements will expedite the commercialization of RSI's unique line of Version branded, polyurethane resin systems.

Highlights of the agreements include cross licensing of intellectual property owned by both parties specified under the agreement, further development of these IP rights and equal ownership of future joint improvements, including patents.

Huntsman Polyurethanes will supply all chemicals and manufacture RSI's ""Version"" resin products at its world-class production facility in Geismar, Louisiana on an exclusive customer basis. The agreement also provides that Huntsman will support the partnership with their considerable technical and R & D capabilities. This will accelerate the development of purpose-built resin formulations for applications that benefit from fire resistance, chemical (corrosion) resistance, weatherability and so on.

RSI's role in the partnership is to oversee the commercial activities of sales and marketing for its ""Version"" resin product line, as well as to market resin products under development by Huntsman that are targeted at pultrusion and filament winding applications. RSI will distribute products from its soon to be determined location in the Cleveland area as well as manufacture products at its Edmonton base for Western Canada and the US Pacific Northwest markets.

John McCrae president of RSI, stated ""These agreements with Huntsman Polyurethanes will rapidly accelerate the acceptance and commercialization of ""Version"" resins, reduce capital requirements for plant and equipment and add significantly to our operating margins. More importantly, these agreements will permit RSI to focus its human and monetary resources on what it does best, marketing and selling Version resins to the pultrusion and filament winding industries"".

According to Huntsman Polyurethanes Business Manager Dr. Derek Crofton, the agreement with RSI provides Huntsman with ""increased opportunity to bring all the benefits of polyurethanes to both the pultrusion and filament winding industries and generate value and significant growth for both companies.""