ZCL Composites Inc. Reports Year End Results

June 11, 2002

Edmonton, Alberta June 11, 2002.... ZCL Composites Inc. . is pleased to report net earnings of $1,836,000 for the year ended March 31, 2002, up from earnings of $1,534,000 for the year ended March 31, 2001.

After adjusting for the costs of the convertible subordinated debenture, basic and diluted earnings per share was $0.11 before and after goodwill charges for 2002, as compared to earnings per share of $0.11 before goodwill charges and $0.09 after goodwill charges for 2001. Effective April 1, 2001, the Company adopted the new recommendations of the Canadian Institute of Chartered Accountants with respect to accounting for goodwill.

Revenue for the year was $25.1 million, down from record revenue of $29.3 million for 2001. Certain upgrade and new installation programs in both the upstream and downstream sectors of the petroleum industry were deferred during the year 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.

Operating earnings increased to $3,406,000 for 2002 from $2,484,000 in 2001. 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 last three quarters this year with the acquisition of the assets and redemption of the shares of ZCL-USA, Inc. in the first quarter.

Net earnings for the fourth quarter this year were $75,000 (basic and diluted loss per share of $0.02) compared to net earnings of $157,000 (basic and diluted net earnings per share of $0.00) for the fourth quarter last year. Operating earnings were $206,000 for the quarter this year and $134,000 last year. Restructuring costs were $324,000 in the fourth quarter last year ($nil in the fourth quarter this year). Revenue for the fourth quarter was $4.9 million this year, as compared to $5.9 million last year.

"The positive results for the year underscore our success in reducing costs and achieving manufacturing efficiencies. We are in a stronger financial position than ever before," said Ven Côté, President. "With continued strength in our primary markets, we expect to sustain our earnings in our core business over the next year. We now look to growth in Canada, in the USA and internationally, utilizing our strong domestic base and customer alliances, our technology and manufacturing expertise, 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