EDMONTON, May 3 /CNW/ - Resin Systems Inc. ("RSI") (RS - TSX Venture /
RSSYF - OTCBB), a composite materials products technology company, and its
operating division, RS Technologies ("RS"), are pleased to announce that RSI
has entered into a license and supply agreement with Armor Utilities
Structures Pty Limited ("AUS") of Sydney, Australia, to introduce and supply
RStandard(TM) utility poles to Australia and New Zealand (the "Territory") on
the following terms:
- RSI granted AUS a license to use RSI's technology for the manufacture
and sale of RStandard(TM) 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(TM) 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(TM) utility poles. RSI has agreed not to issue
any additional licenses in the Territory for a three year period. RSI
has agreed to provide AUS with an ongoing supply of its Version(TM)
resin at its best pricing point to facilitate the manufacture of
RStandard(TM) utility poles by AUS.
- RSI granted AUS a non-assignable right for six years on an exclusive
basis with respect to the Territory, to purchase RStandard(TM)
utility poles from RSI and to represent, market, promote and sell
RStandard(TM) utility poles in the Territory. In order for AUS to
maintain exclusivity within the Territory, it must purchase or
manufacture certain defined tonnages of RStandard(TM) utility poles
within certain time frames.
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(TM) 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(TM) utility poles to AUS in Australia
and it is anticipated that the first full container load of RStandard(TM)
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 Armor Australia Pty, Limited
("Armor") which is a composite materials engineering and manufacturing company
specializing in composite moulding armour panel applications. Armor 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, Armor 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 Armor identifying
RStandard(TM) as the best suited solution for Australia. Armor is located in
Sydney, Australia.
RSI also announced today that it has filed its audited consolidated
financial statements for the year ended December 31, 2004 and management's
discussion and analysis relating thereto with the applicable securities
commissions in Canada, which documents are available for review on RSI's
website at www.grouprsi.com and under RSI's profile on the SEDAR website at
www.sedar.com. Greg Pendura, the Chairman, President and Chief Executive
Officer of RSI, and Paul Giannelia, the Chief Executive Officer of RS, will
discuss the financial results on the RS teleconference and webcast scheduled
for later today at 4:00 p.m. (Eastern time) / 2:00 p.m. (Mountain time). To
listen to the webcast, go to www.grouprsi.com and scroll down to the link
listed under "Latest News from RS". Analysts must pre-register with Brenda
Larabee of RSI prior to 11:00 am MST (1:00pm EST) at (780) 732-6420 to receive
the teleconference dial-in instructions.
RSI is a composite material products technology company which has
commercialized a proprietary RStandard(TM) modular composite utility pole for
sale to power utility companies domestically and abroad. In addition, RSI is
actively engaged in the further development and commercialization of its
proprietary Version(TM) resin and related products for worldwide composite
material applications. "Version" and "RStandard" are trademarks of RSI.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00011122E
