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Beluga Composites Corporation Acquires Panox Petroleum Products Inc.

13 May 2005

Beluga Composites Corporation, FRP storage tanks manufacturer, has acquired Panox Petroleum Products Inc. of Montreal, Canada.

The company recently entered into a definitive agreement with Panox Petroleum Products Inc. (""Panox""), a Canadian corporation based in Montreal, whereby Beluga acquired all of the shares of common stock of Panox and options to purchase common shares of Panox in exchange for common shares of Beluga.

The acquisition of Panox establishes Beluga as one of the world leaders in the manufacturing and sales of UL and ULC certified underground flammable-liquid storage tanks, related accessories and oil/water separators. With operations already in Canada and soon in Philippines and India, Beluga is now poised to accelerate its planned growth in its field.

The technology owned by Panox for fibreglass reinforced plastic (FRP) tanks to be manufactured by Beluga, has been evaluated by a credible third-party experts at over U.S.$75 million.

Beluga's FRP tanks were developed as an improved solution to the environmental problems arising from the use of steel tanks for storing petroleum fuel. Steel tanks are prone to leaks caused by metal fatigue and corrosion which often still take place despite multiple protective coatings.

The tanks use continuous fibres to produce a uniform filament-wound FRP tank which the company say is technically and structurally superior as the application of resin and fibreglass are constant over the entire tank.

Beluga now becomes the only company worldwide to hold the Underwriters Laboratories (UL) certification as well as the Underwriters Laboratories of Canada (ULC) certification for the quality of its FRP tanks and related products.