Resin Systems Announces Second Quarter 2008 Results

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 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." -- www.cnxmarketlink.com