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Resin Systems to Supply Composite Utility Poles to Australia and New Zealand

06 May 2005

Resin Systems Inc. has entered into a license and supply agreement with Armour Utilities Structures Pty Limited (AUS) of Sydney, Australia, to introduce and supply its composite RStandard utility poles to Australia and New Zealand.

Terms of the licensing agreement RSI granted AUS a license to use RSI's technology for the manufacture and sale of RStandard utility poles in the Territory in consideration of a one time license fee payable upon commencement of the technology transfer and an ongoing royalty fee expressed as a percentage of gross sale amounts of RStandard utility poles made by AUS. The license is initially for a single production unit, comprised of two cells capable of producing 2,000 kilograms per hour of completed RStandard utility poles.

It is anticipated that AUS's production facilities in Australia will be operational by the end of the fourth quarter in calendar 2006. Until AUS's production facilities are fully operational, all RStandard utility poles to be distributed in the Territory will be manufactured in RS's Alberta production facilities and shipped to AUS for distribution. RS has delivered a demonstration shipment of RStandard utility poles to AUS in Australia and it is anticipated that the first full container load of RStandard utility poles will be shipped to AUS before the end of the third quarter in calendar 2005.

The Australian electrical power utility industry has publicly identified the urgent need to replace in excess of 200,000 existing utility pole structures in the national power grid on an annual basis. Neil Caswell, Managing Director of AUS stated, ""The industry has also recognized that the growing shortage of traditional timber utility pole structures requires the implementation and usage of new longer life manufactured alternatives. The RStandard(TM) utility pole structures provide the longest life and lowest life cycle cost solution of all current commercially produced utility pole structures, including wood, steel, concrete and other composite poles.""

AUS is a wholly-owned subsidiary of Armour Australia Pty, Limited (""Armour"") which is a composite materials engineering and manufacturing company specializing in composite moulding armour panel applications. Armour works within a variety of industries providing engineered composite solutions from design and prototyping through to providing fully designed and operational production cells. Since 2004, Armour has been engaged by the Australian electrical energy transmission and distribution industry to investigate the use of fibre composites to meet the industry's growing need for replacement of its utility pole structures. This initiative resulted in Armour identifying RStandard as the best suited solution for Australia. Armour is located in Sydney, Australia.






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