Resin Systems Announces Second Quarter 2008 Results



    CALGARY, Aug. 14 /CNW/ - Resin Systems Inc. ("RS"), (RS - TSX/RSSYF -
OTCBB), a technology innovator that develops advanced composite material
products for infrastructure markets today announced its financial and
operating results for the quarter ended June 30, 2008. RS reports in Canadian
dollars and all financial references in this news release are in Canadian
dollars unless otherwise noted.

    Second Quarter 2008 Highlights

    
    -   Revenue increased to $1.4 million in the second quarter of 2008 (2007
        - $0.05 million) and year-to-date it increased by $3.3 million to
        $3.5 million (2007 - $0.2 million) due to an increase in
        RStandard(TM) utility pole sales;
    -   net loss for the quarter was $11.2 million (2007 - $8.1 million) or a
        loss of $0.08 per share (2007 - loss of $0.06 per share) and net loss
        year-to-date is $18.4 million (2007 - $14.4 million) or a loss of
        $0.14 per share (2007 - loss of $0.13 per share), due mainly to write
        downs associated with Global Composite Manufacturing Inc.("GCM")
        totaling $5.2 million for the quarter and year-to-date; and
    -   use of cash in operations before non-cash working capital was
        $9.0 million (2007 - $4.1 million) and year-to-date it was
        $12.4 million (2007 - $8.3 million) due mainly to write downs
        associated with GCM totaling $5.2 million for the quarter and
        year-to-date.
    

    Business Operations

    As previously disclosed on August 1, 2008, RS applied to the Ontario
Superior Court of Justice and was granted an order appointing BDO Dunwoody LLP
as interim receiver for GCM, RS's RStandard utility pole contract
manufacturer. RS applied to have the interim receiver appointed for GCM due to
GCM's failure to obtain the planned funding necessary to operate its business.
The appointment of the interim receiver was the most orderly way to protect
and preserve RS's assets, achieve a smooth transition of operations and ensure
the continuation of production activities.
    RS has signed an agreement with BDO Dunwoody Limited for RS to be fully
responsible for and operate the utility pole manufacturing facility in
Tilbury, Ontario. Manufacturing has started and RS currently has more than 50
employees working on production activities. RS's production targets for cell 1
and 2 remain unchanged and the company will not require additional funding to
operate cells 1 and 2.
    "With production activities continuing, we have achieved our objective of
seamlessly transferring the manufacturing operations in Tilbury to RS," said
Paul Giannelia, president and chief executive officer of RS. "As we
anticipated, the transfer of operations did not materially impact the
production and delivery of our poles to our customers. We are focused on
increasing output and growing our business."
    RS held a teleconference and webcast on Tuesday, August 12, 2008 and
discussed the Company's manufacturing and business plans. The webcast is
archived on RS's website, www.grouprsi.com, and will be available for
approximately 90 days. In addition, to listen to a replay of the
teleconference, please dial 1-866-245-6755 (toll-free in North America) or
(416) 315-1035 and enter the passcode 382444. The replay is available for
another 12 days. For its third quarter results, the Company will issue a news
release announcing the date and time of the teleconference and webcast.
    RS has filed its unaudited consolidated financial statements for the
quarter ended June 30, 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, www.sec.gov and RS's website at
www.grouprsi.com.

    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.

    "RStandard" is a registered trademark of RS.





For further information:

For further information: Resin Systems Inc., Dimitrios (Jim) Leonidas,
Chief Financial Officer, Tel: (403) 219-8000, Fax: (403) 219-8001, Email:
info@grouprsi.com; Laurien Abel, Investor and Public Relations Coordinator,
Tel: (403) 219-8000, Fax: (403) 219-8001, Email: info@grouprsi.com

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RESIN SYSTEMS INC.

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