ZCL Composites Inc. Reports First Quarter Results

August 18, 2003

Edmonton, Alberta August 18, 2003.... ZCL Composites Inc. is pleased to report revenue of $7.2 million for the first fiscal quarter ended June 30, 2003, a 47% increase from revenue of $4.9 million for the quarter last year. Net income for the quarter was $236,000, up from a net loss of $93,000 for the first quarter last year. Basic and diluted earnings per share for the first quarter were $0.01, as compared to loss of $0.03 per share for the quarter last year. Convertible subordinated debenture costs of $216,000 were deducted in the calculation of the loss per share in the first quarter last year, and with the repayment of the debenture, these costs were not incurred this year.

This strong performance was the result of the acquisitions of Mocoat Services Incorporated and Parabeam Industries BV, revenue from new products, along with improved activity in traditional industry sectors. Activity picked up in the downstream and upstream sectors of the petroleum industry in the latter part of last fiscal year, and carried into the first quarter of this year. Historically, the first and fourth quarters have the lowest levels of activity, corresponding to the seasonality of the installation of underground liquid storage systems in Canada.

"Our growth target will be achieved through both internal expansion and acquisitions. We are positioned for growth through new products, as well as continued strength in our traditional markets. Our current focus is the development and marketing of our tank lining technologies," says Ven Côté, President. "The first quarter was a good start to our fiscal 2004 year. With continued growth in revenue and income, coupled with an improved investor communication program, we look forward to better performance in the price of our shares."

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