Resin Systems Announces Second Quarter 2007 Results



    CALGARY, Aug. 13 /CNW/ - Resin Systems Inc. (RS - TSX/RSSYF - OTCBB), a
developer of innovative advanced material products ("RS"), today announced its
financial and operating results for the quarter ended June 30, 2007. RS
reports in Canadian dollars and all financial references in this news release
are in Canadian dollars unless otherwise noted.

    
    Second Quarter 2007 Highlights

    -  Net loss of $8.1 million or $0.06 per share, down 32 percent from
       fourth quarter 2006 of $11.9 million or $0.13 per share and down
       24 percent from second quarter 2006 of $10.6 million or $0.12 per
       share;
    -  use of cash in operations of $4.1 million, down 58 percent compared to
       $9.9 million in the fourth quarter of 2006 and down 56 percent
       compared to $9.3 million in the second quarter 2006;
    -  completion of the move and upgrade of RStandard pole production in
       Tilbury, Ontario;
    -  completion of the installation and commissioning of the manufacturing
       equipment and process of the first RStandard(TM) pole production cell;
    -  together, RS and FMC Technologies, Inc. have identified over 20
       initial customer-paid pilot sites for Link-Belt(R) Composite Conveyor
       Idler Rollers exclusively using RS's composite roller tubes with
       installations occurring over the remainder of 2007; and
    -  RS delivered its first significant shipment of composite roller tubes
       to FMC Technologies, Inc.
    

    "Our second quarter results demonstrate that we have successfully met our
goal of dramatically reducing the use of cash in operations from 2006 levels,"
said Paul Giannelia, president and chief executive officer. "All our focus is
on resuming and then increasing our RStandard utility pole production, adding
more production cells and successfully introducing our composite roller tube
to the market with the objective of reaching profitability in 2008."

    RStandard Utility Poles

    Further to RS's binding letter of intent with Global Composite
Manufacturing, Inc. announced February 2, 2007, RS entered into a definitive
manufacturing and licensing agreement with Global Composite Manufacturing,
Inc. in August 2007. This agreement provides the framework whereby Global
Composite Manufacturing is responsible to move, upgrade and re-commission the
existing RStandard utility pole manufacturing equipment as well as related
additions for use in Global Composite Manufacturing, Inc.'s production of
RStandard utility poles under license from RS. Pursuant to this agreement, RS
has agreed to advance up to $3.5 million to be repaid through future product
deliveries or upon completion of financing by Global Composite Manufacturing,
Inc. and to provide a limited recourse guarantee not to exceed $4 million in
connection with such financing. This guarantee will be collateralized with the
RStandard utility pole manufacturing equipment and related additions.
    Under this agreement, Global Composite Manufacturing, Inc. has completed
the move and upgrade to the RStandard utility pole production and have
successfully commissioned the manufacturing equipment and process for the
first production cell. Global Composite Manufacturing, Inc. is currently
completing the climate controls in various production cell work zones which is
the last step required for regular commercial production and deliveries to
customers to resume.
    RS also continued its transition of sales and distribution functions to
HD Supply Utilities, Ltd. RS has already completed training of HD Supply
Utilities, Ltd.'s regional sales teams in 30 different sites while work
continues on product literature and technical support requirements. Deliveries
to HD Supply Utilities, Ltd. are expected to begin in the latter part of the
third quarter.

    RStandard Roller Tubes

    FMC Technologies, Inc.'s is now formally introducing to the market its
line of Link-Belt Composite Conveyor Idler Rollers using RS's composite roller
tube. In conjunction with the introduction to market, RS announces it will
market its composite roller tube under the RStandard brand name (formerly
referred to as VRoll).
    Together, RS and FMC Technologies, Inc. have identified over 20 initial
customer-paid pilot sites for Link-Belt(R) Composite Conveyor Idler Rollers
using RS's composite roller tubes. In preparation of initial deliveries to
these sites, RS delivered to FMC Technologies, Inc. its first significant
shipment of composite roller tubes and deliveries were made to the first pilot
installations in July and August 2007.
    "We are very close to resuming commercial production of RStandard utility
poles at Global Composite Manufacturing, Inc.'s new efficient facility in
Ontario," said Mr. Giannelia. "Resuming production and commercial deliveries
of RStandard poles and successfully introducing our new composite rollers to
the market will mark the beginning of a significant growth phase for our
company."
    RS has filed its unaudited consolidated financial statements for the
quarter ended June 30, 2007 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.

    Conference Call

    RS will host a conference call on Monday, August 13, 2007 starting at
9:00 a.m., MDT (11:00 a.m. EDT) to discuss RS's 2007 second quarter results.
    To participate in the conference call, 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. The webcast
will be archived for approximately 90 days.

    Reader Advisory

    Certain information set forth in this MD&A, 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, and 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 terms "loss before interest, taxes, depreciation and amortization"
and "funds used in operations" are not recognized measures under Canadian
generally accepted accounting principles. Management believes that in addition
to net loss, "loss before interest, taxes, depreciation and amortization" and
"funds used in operations" are useful supplemental measures, providing an
indication of RS's ability to fund future operations. Investors are cautioned
that "loss before interest, taxes, depreciation and amortization" and "funds
used 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 "loss before interest, taxes, depreciation and amortization" and
"funds used in operations" may differ from other issuers and may not be
comparable to similar measures presented by other issuers.

    About RS

    RS is a developer of innovative advanced material products for
large-scale industrial markets. These products replace products which
traditionally have been made using conventional building blocks of wood,
concrete and steel. The foundation of RS is continuous innovation and product
development utilizing its proprietary Version(TM) polyurethane resin system.
    RS has successfully developed the RStandard(TM) composite roller tube and
the award winning RStandard(TM) modular composite utility pole. For the latest
on RS's developments, click on "Latest News" on www.grouprsi.com.

    "Version", "RStandard" and "VRoll" are trademarks of RS.

    "Link-Belt(R) Composite Conveyor Idler Rollers" is a registered trademark
    of FMC Technologies, Inc.





For further information:

For further information: Resin Systems Inc., Rob Schaefer, Chief
Financial Officer and Corporate Secretary, Tel: (403) 219-8000, Fax: (403)
219-8001, Email: info@grouprsi.com

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RESIN SYSTEMS INC.

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