Wood Composite announces renewed and expanded credit facility and further updates


    NISKU, AB, March 9 /CNW/ - Wood Composite Technologies Inc. ("Wood
Composite" or the "Company") is pleased to announce a renewed and expanded
credit facility with J.F. Mackie & Company Ltd. ("J.F. Mackie") and its

    Credit Facility

    The Company has negotiated secured debt financing for gross proceeds of
$3,000,000 (the "Loan") to replace and expand the secured debt financing of
$1,700,000 announced on December 21, 2005. The Corporation paid out in full
the prior $1,700,000 facility on December 12, 2006. In consideration of the
new debt, which debt is to be repaid within 14 months, renewable for an
additional 14 month term, with interest payable at the rate of 10% per annum,
the Company has granted Memorandums of Agreement Charging Lands and a General
Security Agreement. It is anticipated the Loan will be advanced in two or more
tranches presently expect to consist of an initial advance of $1,200,000 and a
subsequent advance of $1,800,000. The Loan does not involve a voting or equity
component and as such will not dilute the current equity of the Company's
shareholders. The proceeds of the Loan will be used for general working
capital purposes.
    The Loan may be considered, in part, a related party transaction within
the meaning of Ontario Securities Commission ("OSC") Rule 61-501 (the "OSC
Rule") on the basis that certain insiders of the Company are participating in
the Loan as nominees of J.F. Mackie. Michael Greenwood, a director of the
Company is expected to advance $750,000 of the Loan. Deesons Investments Ltd.,
an insider of the Company, of which two directors of the Company, Michael
Henson and Dayan Henson (who is also the Chairman of the Company), are
directors and officers of Deesons Investments Ltd., is expected to advance
$550,000 of the Loan. In addition, Michael Henson is expected to advance
$150,000 of the Loan. The formal valuation and minority approval requirements
set out in the OSC Rule do not apply to the Loan since, amongst other factors,
the fair market value of the insiders participation will not exceed 25% of the
Company's market capitalization and the Loan does not involve an equity or
voting component.

    About Wood Composite

    Wood Composite is an Edmonton, Alberta based junior industrial company
focused on the development, manufacture and sale of alternative composite
building materials. Wood Composite has been marketing its business via
Millennium Decking Inc., which is a wholly owned subsidiary of Wood Composite.
Wood Composite maintains certain patents and processes that are proprietary to
the Company which combine recycled polyvinyl chloride (PVC) and wood flour to
produce a unique, attractive, durable and low maintenance exterior decking
product. Wood Composite is listed on the TSX Venture Exchange under the symbol

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities of WCT in any jurisdiction,
including the United States, or to, or for the account or benefit of, U.S.
persons absent U.S. registration or an applicable exemption therefrom, nor
shall there be any sale of such securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Such securities have not been and
will not be registered under the U.S. Securities Act, 1933, as amended, and
subject to certain exemptions may not be offered or sold in the United States
or to U.S. persons.


    Statements set out in this news release that are not historical facts are
forward-looking statements. Forward-looking statements (often, but not always,
identified by the use of words such as "expect", "may", "could", "anticipate"
or "will" and similar expressions) may include expectations, opinions or
guidance that are not statements of fact. Forward-looking statements are based
upon the opinions, expectations and estimates of management of WCT as at the
date the statements are made and are subject to a variety of known and unknown
risks and uncertainties and other factors that could cause actual events or
outcomes to differ materially from those anticipated or implied by such
forward-looking statements. Those factors include, but are not limited to,
risks, uncertainties and other factors that are beyond the control of WCT. In
light of the risks and uncertainties associated with forward-looking
statements, readers are cautioned not to place undue reliance upon
forward-looking information contained in this news release. Assumptions
relating to certain forward-looking information contained in this news release
are set out above in this news release. Although WCT believes that the
expectations reflected in the forward-looking statements set out in this news
release are reasonable, it can give no assurance that such expectations will
prove to have been correct. The forward-looking statements of WCT contained in
this news release are expressly qualified, in their entirety, by this
cautionary statement. The forward-looking statements are made as of the date
of this news release and WCT assumes no obligation to update or revise them to
reflect new events or circumstances, except as expressly required by
applicable securities law. Further information regarding risks and
uncertainties relating to WCT and its securities can be found in the
disclosure documents filed by WCT with the securities regulatory authorities
(including WCT's annual financial statements for the fiscal year ended
September 30, 2006, which was filed on SEDAR on June 29, 2006), available at

For further information:

For further information: John Greenwood, President and Chief Executive
Officer, Telephone: (780) 955-3525, Facsimile: (780) 955-7075, Websites:
www.mdecking.com and www.woodcomp.com

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Wood Composite Technologies Inc.

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