Innovative Composites Completes Eleison Acquisition

Acquisition reduces costs, expands IP portfolio and boosts revenue

TORONTO, Nov. 2, 2011 /CNW/ - Innovative Composites International Inc. (TSX-V: IC) ("ICI" the "Company"), announced today that it has completed the previously announced purchase of the assets of Eleison Composites LLC ("Eleison"), a manufacturer of fiber reinforced thermoplastic skin material which is utilized in all ICI products.

The Eleison acquisition allows ICI to control supply of a strategic raw material that is used in all its products. In addition, patents formally held by Eleison allow for the utilization of recycled Polyethylene Terephthalate ("PET") and other recycled polymers, in the manufacture of thermoplastic skin and core materials. According to the U.S. Government Accountability Office, approximately 1 million tons of PET water and soft drink bottles end up in landfills annually, making it a readily accessible and low cost raw material for ICI products.

The Eleison equipment will be integrated in the ICI production lines in the Sault St. Marie and South Carolina facilities and will result in a significant reduction of costs for all ICI products. Eleison was on target to record approximately US$2 million in annual sales for 2011 and ICI expects the acquisition to boost revenue as it is continuing to ship products to former Eleison customers.

"This acquisition not only allows us to reduce costs, but also ensures that we stay ahead of any potential competition. ICI now has the IP and technology to be the lowest cost producer of the fiber reinforced thermoplastic skin and has eliminated our dependency on a raw material supplier," said ICI President and CEO Terry Ball. "Vertical integration has always been an integral part of our strategy and the ability to utilize recycled plastics in the manufacturing process should significantly strengthen ICI's position in all our target markets."

About Innovative Composites International Inc.

Headquartered in Toronto, Canada  Innovative Composite International (TSX-V: IC) is a high tech engineering and manufacturing company that is successfully commercializing a patent protected line of state-of-the-art composite products targeted at the multi-billion dollar transportation and affordable housing markets.

Led by a team of commercialization experts ICI has adopted a tier two business model:  it designs and manufactures game-changing products and partners with established companies in its target markets to utilize their sales channels for faster product roll-out.

This strategy and the superior characteristics of the products have resulted in rapidly growing sales in both markets and opened up opportunities that could lead to large scale contracts on an ongoing basis.

To find out more about ICI please visit our website at: www.innovativecompositesinc.com

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

"Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections."

 

SOURCE Innovative Composites International Inc.

For further information:

Ilja Troitschanski                                or                               Philip Dale
Chief Financial Officer                                                           TMX Equicom
(416) 646 0754                                                                        (416) 815 0700 ext 253
ilja@innovativecompositesinc.com                                       pdale@equicomgroup.com

 

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Innovative Composites International Inc.

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