ZCL Composites Inc. Closes Equity Financing

September 27, 2002

Edmonton, Alberta September 27, 2002 ... ZCL Composites Inc. ("ZCL") is pleased to announce that it has completed the private placement to ARC Energy Venture Fund 3 of 7,368,422 units ("Unit") at $0.95 per Unit for total proceeds to ZCL of $7.0 million. This financing proposal was initially announced by news release on August 8, 2002.

Each Unit is comprised of one common share of ZCL and 0.5 Performance Warrants ("Warrant"). Each whole Warrant entitles the holder to subscribe for one common share at a price of $0.95 for a period of up to five years subject to a performance vesting provision. The Warrants vest at one-third intervals upon the weighted-average trading price of ZCL common shares reaching thresholds, for a period of twenty trading days, of $1.90, $2.85 and $3.80 per common share. One-half of the Warrants will be transferred to senior officers of ZCL.

ARC Energy Venture Fund 3 is an investment fund specializing in oil and gas exploration and production and service companies and which is managed by ARC Equity Management (Fund 3) Ltd., part of the ARC Financial group of companies.

"We are very pleased to have completed this financing with ARC who share our vision for the Company," says Ven Côté, President & CEO of ZCL. "We are now in a position to repay our debenture which is due on November 30, 2002, and to move to the next level in the implementation of our growth strategy."

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 VP Finance & CFO ZCL Composites Inc. (780) 466-6648 tony.barlott@zcl.com