Cymat Reports Results From Q4 Of Fiscal 2005

Cymat Continues Progress Towards Production Readiness

Listing:    TSX
Symbol:     CYM

TORONTO, July 26 /CNW/ - Cymat Corp. (TSX: CYM), an innovative materials
technology company, today reported its financial results for the fourth
quarter of its fiscal year ending April 30, 2005.
The Company reported revenue of $196,162 for the quarter ended April 30,
2005, compared with $42,378 for the quarter ended April 30, 2004. The net loss
for the period was $1,444,508, or $0.03 per share, compared with $1,482,045,
or $0.04 per share for the same period in 2004. Cash utilized in operating
activities for the quarter ended April 30, 2005 totalled $433,031 as compared
to $991,085 for the same period in 2004.

Highlights for Q4:
-----------------

During Q4 Cymat continued to advance its strategy targeting the
commercial application of Stabilized Aluminum Foam (SAF) in the automotive
sector and achieved a number of commercial, technical and IP milestones:

Commercial
----------

-  As previously announced, during Q4 Cymat's development partner
   Georg Fischer Automotive ordered a quantity of SAF casting cores for
   use as benchmarking prototypes in a highly stressed cast aluminum part
   for an automotive OEM.

-  Cymat supplied preliminary SAF casting core samples to Brembo S.p.A.
   for their evaluation.

-  Cymat continued to provide additional SAF samples, technical data and
   technical support to Valeo in support of their initiatives to market
   front-end solutions that incorporate SAF-filled crash-box components
   to selected automotive OEMs in Europe and Asia. The Company continues
   to be very pleased by the OEMs' receptivity to this innovation and
   expects this program to progress towards commercialization.

-  Cymat shipped a quantity of SAF castings for B-pillar reinforcement to
   Michigan-based L&L Products for destructive testing and evaluation.

-  Subsequent to Q4, Cymat entered into a specific purpose license
   agreement with Kurtz GmbH to enable Kurtz to manufacture Cymat's Low
   Pressure Foam Casting (LPFC(TM)) system for one of Cymat's development
   partners. Cymat will supply several of its proprietary gas injection
   systems for inclusion in the LPFC(TM) being delivered by Kurtz.

-  Cymat continues to be actively involved in pedestrian protection as a
   member of the CEPPS consortium. The Company's participation in this
   consortium provides it with opportunity to leverage the potential for
   its products as vehicle designers strive to create appealing
   front-end designs that meet the new European pedestrian safety
   standards.

Technical & IP
--------------

-  In conjunction with its European partner, Cymat continued development
   of the low-cost, production-scale manufacturing capability needed to
   make aluminum foam components for applications in the automotive
   sector. The Company is making good progress integrating the technology
   developed using its bench-scale unit into its commercial-scale
   LPFC(TM) system and recently completed systematic testing to
   demonstrate the commercial-scale production capability of its LPFC(TM)
   process.

-  As previously disclosed, in Q3 Cymat was granted a patent in the
   United States covering the displacement casting process used by the
   Company to produce the SAF near-net shape components it is developing
   for the automotive sector. As also previously disclosed, in Q4 Cymat
   was granted a second patent in the United States covering a method for
   producing discrete moulded aluminum foam components. Subsequent to Q4
   the Company was granted the European counterpart for its most recent
   US patent.

-  As previously disclosed, during Q2 of fiscal 2005 Cymat initiated
   infringement proceedings in Austria against an Austrian company and
   sought an interim injunction to prevent it from further infringing
   Cymat's patented metal foam production process. As also previously
   disclosed, during Q4 of fiscal 2005 the Austrian Court formally issued
   the interim injunction against the Austrian company after Cymat posted
   the required security bond of (euro) 1,000,000 (approx. $1,600,000).
   As expected, the Austrian company has exercised its right of appeal.
   Cymat has filed its response and the appeal is being considered.

Financing and General
---------------------

-  As previously disclosed, subsequent to the end of Q4 the Company
   completed a private placement for aggregate gross proceeds of
   $2.7 million.

"We are very pleased with the commercial and technical advancements made
during our fourth quarter," said Dr. Paul A. Tichauer, President & CEO of
Cymat. "We have significantly advanced our ability to produce Near-net Shape
Stabilized Aluminum Foam parts using our commercial-scale LPFC(TM) technology
and equipment. This capability becomes increasingly important as we progress
towards commercialization of applications for the automotive sector."
Tichauer continued, "In addition, we have been granted several important
basic patents in both the United States and Europe. Collectively, these
patents extend protection for the Company's SAF manufacturing process through
the year 2022."
For the year ended April 30, 2005 the Company reported revenue of
$397,688, compared with $340,525 for the year ended April 30, 2004. The net
loss for the period was $5,793,196, or $0.13 per share, compared with
$8,433,451, or $0.21 per share. Cash utilized in operating activities for the
year ended April 30, 2005 totalled $3,129,143 as compared to $6,405,668 for
the same period in 2004.

The following is a summary of key financial information for the three
months and twelve months ended April 30:

<<
                         3 months     3 months    12 months    12 months
                             2005         2004         2005         2004
                             ----         ----         ----         ----

Revenues                 $196,162      $42,378     $397,688     $340,525
Research and
 Development Costs     $1,273,545     $908,958   $4,276,561   $4,504,351
Net Loss              $(1,444,508) $(1,482,045) $(5,763,196) $(8,433,451)
Net Loss Per Share(x)      $(0.03)      $(0.04)      $(0.13)      $(0.21)
Cash and Short Term
 Investments             $563,571   $3,124,230     $563,571   $3,124,230
Cash flow from
 operating activities   $(433,031)   $(991,085) $(3,129,143) $(6,405,668)
Working Capital
 (as at April 30)         $83,691   $2,935,865      $83,691   $2,935,865

(x)Net loss per share has been calculated using the weighted average
number of common shares outstanding during the year ended April 30, 2005
of 44,370,691 (April 30, 2004 -40,498,193).

About Cymat

Cymat develops innovative materials for industry. The company has
exclusive worldwide rights, through patents and licenses, for producing
stabilized aluminum foam product. The foam is manufactured by bubbling gas
through molten alloyed aluminum containing a dispersion of fine ceramic
particles and is used to create lightweight panels and shapes. The result is a
revolutionary material with a wide array of benefits, including ultra-light
weight, mechanical energy absorption, thermal and acoustic insulation,
recyclability and relatively low cost of production. Cymat's research and
development group is collaborating with a number of partners spanning the
automotive, transportation and construction industries. The company's
principal focus is on automotive, where aluminum foam is ideally suited to the
industry's objectives to make vehicles lighter, safer and better for the
environment. For further information, visit the Web site www.cymat.com.

The foregoing press release contains forward-looking statements relating
to the development of markets, development programs, future revenues and
improvements in technology, which are subject to important risks and
uncertainties. The results or events predicted in these statements may differ
materially from actual results or events. Factors which could cause results or
events to differ from current expectations include the availability of
funding, existing and future relationships with suppliers and manufacturers,
the results of research and development activities, risks of technological
breakthroughs that make Cymat stabilized aluminum foam less attractive, risks
relating to the breadth, scope and enforceability of intellectual property
rights, general industry and market conditions, availability of qualified
personnel, and reliance on co-development partners. For additional information
with respect to these and other factors, see the reports filed by Cymat Corp.
with the Ontario Securities Commission. Cymat Corp. disclaims any intention or
obligation to update or revise any forward-looking statements.

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