ZCL Composites Inc. Reports Third Quarter Results

February 19, 2002

Edmonton, Alberta February 19, 2002.... ZCL Composites Inc. reports net earnings of $459,000 for the third quarter ended December 31, 2001 ($1,761,000 for the nine-month period), up from net earnings of $436,000 for the quarter ($1,377,000 for nine months) last year. Basic and diluted earnings per share were $0.03 for the third quarter ($0.13 for nine months), as compared to $0.03 for the quarter ($0.09 for nine months) last year, after adjusting for costs of the convertible subordinated debenture.

Revenue for the quarter ended December 31, 2001 was $5.8 million ($20.2 million for nine months), down from record levels of $8.4 million for the quarter ($23.4 million for nine months) last year.

Revenue decreased from record levels last year, as certain upgrade and new installation programs in both the upstream and downstream sectors of the petroleum industry were deferred during the period because of low commodity prices and merger and acquisition activity. The industry is expected to recover and many companies are forecasting major capital expenditures for the coming year.

Despite lower revenue, earnings have increased largely due to reduced losses of ZCL-USA, Inc. and lower restructuring costs. Losses in the US were eliminated in the second and third quarters this year with the acquisition of the assets and redemption of the shares of ZCL-USA, Inc. in the first quarter. The growth in earnings for the nine-month period this year was achieved even after additional future income tax expense in the first quarter of $145,000, or $0.016 per share ($nil last year), related to the effect of a change in Provincial income tax rates.

"These positive results underscore our success in reducing costs and achieving manufacturing efficiencies. We are in a stronger financial position than ever before," said Ven Côté, President. "We now look to growth in Canada, in the USA and internationally, utilizing our strong domestic base, our proven technology, and our innovation and leadership in the industry."

ZCL Composites Inc. trades on the Toronto Stock Exchange under the symbol "ZCL" and is Canada's largest manufacturer of fiberglass underground storage tanks. ZCL's complete fuel storage systems marketed under the "Prezerver" trademark carry a $2 million warranty against pollution.

For further information, please contact:

Venence G. Côté President & CEO ZCL Composites Inc. (780) 466-6648 ven.cote@zcl.com

Tony G. Barlott V.P. Finance & CFO ZCL Composites Inc. (780) 466-6648 tony.barlott@zcl.com