Resin Systems Announces First Quarter 2008 Results

CALGARY, May. 14 /PRNewswire/ --

CALGARY, May 14 /PRNewswire-FirstCall/ - Resin Systems Inc. ("RS"), , a technology innovator that develops advanced composite material products for infrastructure markets today announced its financial and operating results for the quarter ended March 31, 2008. RS reports in Canadian dollars and all financial references in this news release are in Canadian dollars unless otherwise noted.

First Quarter 2008 Highlights - revenue increased to $2.0 million in the first quarter of 2008 versus $0.1 million in the first quarter of 2007; - net loss for Q1 2008 was $7.2 million or ($0.05) per share compared to a net loss of $6.3 million or ($0.06) per share for the first quarter of 2007; - use of cash in operations before non-cash working capital of $3.3 million, down 20 percent compared to $4.2 million in the first quarter 2007; - cash balance as of the end of the first quarter was $9.0 million compared to $10.2 million at the end of the fiscal year 2007, the cash balance is sufficient to fund future operations; - the current utility pole production backlog is in excess of $50 million; - the initial shipment of $1.1 million of backlog will be delivered in May and the remaining shipments will be delivered over the 24 month contract period; - the first production cell of RStandard(TM) utility poles is operating with three shifts; - production from the second cell will start in the second quarter; and - full launch of RStandard composite roller system will commence during the second quarter of 2008. RStandard Utility Poles

RS has contracted the manufacture of its composite utility poles to Global Composite Manufacturing, Inc. ("GCM") in Tilbury, Ontario. GCM has been focusing its attention on increasing production output on the first production cell, and upgrading, installing and recommissioning the second production cell. Production on the second cell is expected to begin during the second quarter of 2008. Optimal production for both cells is expected to be achieved by the end of the third quarter of this year.

RS continues to work with HD Supply Utilities, Ltd. ("HDs") on North American market penetration of RStandard poles by adding key customers and increasing the number of repeat orders from existing customers. With the planned ramp in GCM production, HDs is expected to begin stocking distribution outlets and initiating its systemwide distribution efforts during the second quarter.

RStandard Roller Tubes

RS supplies its composite RStandard roller tubes to FMC Technologies, Inc. ("FMC") under a supply agreement for the manufacture of an innovative new "harsh extreme service" conveyor roller system. This product which has been in pilot applications since September 2007 is now ready for full market launch.

The Company and FMC continue their efforts to identify and deliver additional pilot installations. To date, more than 50 percent of the identified pilot installations have been delivered. Regular orders from the initial pilots delivered during 2007 are expected to begin in the second quarter of 2008.

The Company's roller tube production capacity has been increased with the addition of a higher tonnage pultruder. The new pultruder will allow RS to produce all types of larger diameter roller tubes. As market demand increases, RS intends to enter into arrangements with one or more experienced contract manufacturers to manufacture pultruded roller tubes.

The increased pultruder capacity will also enhance the Company's ability to continue its research and development of new products, including short, lower load one piece composite utility poles. Production on this new pultruder is expected to start during the second quarter with planned production increases throughout the year.

RS has filed its unaudited consolidated financial statements for the quarter ended March 31, 2008 and related management's discussion and analysis with Canadian securities regulatory authorities. The financial statements and management's discussion and analysis have also been filed with the United States Securities and Exchange Commission. Copies of the respective documents are available at www.sedar.com, and RS's website at .

Conference Call

RS will host a conference call on Thursday, May 15, 2008 starting at 11 a.m. EDT (9 a.m. MDT) to discuss RS's 2008 first quarter results.

To participate please dial 1-866-334-4934 (toll-free in North America) or (416) 849-4293 approximately 10 minutes prior to the call. A live audio webcast of the conference call will also be available via RS's website, www.grouprsi.com, on the home page and the investor relations page. The webcast will be archived for approximately 90 days. In addition, to access a replay of the teleconference, please dial 1-866-245-6755 (toll-free in North America) or (416) 915-1035 and enter passcode 689660. The replay will be available until September 5, 2008.

Annual General Meeting of Shareholders Information

The Company's Annual General Meeting of Shareholders is to be held on Tuesday, June 3, 2008, at 10:30 a.m. MDT in the Macleod E4 room at the Telus Convention Centre located at 120 - 9th Avenue S.E., Calgary, Alberta.

Reader Advisory

Certain information set forth in this news release, including management's assessment of RS's future plans and operations, contains forward-looking statements which are based on RS's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as anticipate", "believe", "plan", "estimate", "expect", "predict", "intend", "will", "may", "could", "would", "should" and similar expressions intended to identify forward-looking statements. These statements are not guarantees of future performance and reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause RS's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, RS's lack of revenues and unpredictability of future revenues; the uncertainty of the profitability of existing and contemplated products of RS; RS's future capital requirements; RS's future labour requirements; competition from established competitors with greater resources; the uncertainty of developing a market for RS's products or for third party products incorporating its products; RS's reliance on third parties to manufacture and sell its RStandard products and to manufacture and sell a line of rollers based on its RStandard composite tubes; RS's reliance on third party licensees in international markets; the risks associated with rapidly changing technology; RS's reliance on third parties to supply raw materials to it so it may make its Version resin and RStandard composite tubes; intellectual property risks, risks associated with international operations, foreign exchange rate fluctuations and changes in general economic, market and business conditions. Many of these risks and uncertainties are described in RS's 2006 Annual Information Form and other documents RS files with the Canadian securities authorities and the United States Securities and Exchange Commission. The forward-looking statements are made as of the date hereof and RS assumes no obligation to update or revise such statements to reflect new events or circumstances unless otherwise required to by applicable securities laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

The term "use of cash in operations" is not a recognized measure under Canadian generally accepted accounting principles. Management believes that in addition to net loss, "use of cash in operations" is a useful supplemental measure, providing an indication of RS's ability to fund future operations. Investors are cautioned that "use of cash in operations" should not be construed as an alternative to net loss determined in accordance with generally accepted accounting principles as an indicator of the financial performance of the Company. The Company's method of calculating "use of cash in operations" may differ from other issuers and may not be comparable to similar measures presented by other issuers.

About RS

RS is a technology innovator that develops advanced composite material products for infrastructure markets. These advanced material products are not only structurally superior to products made with traditional building blocks of wood, steel or concrete, they are also lighter, more durable and longer-lasting. The Company has entered the global market with its award winning utility poles and conveyor roller tubes as its initial products, and continues to identify a growing list of additional innovative products.

RS designs, engineers and develops its products in-house, while outsourcing its manufacturing and distribution.

"RStandard" is a registered trademark of RS.