ZCL Composites Inc. Reports Third Fiscal Quarter Results

February 17, 2004

Edmonton, Alberta February 17, 2004... ZCL Composites Inc. today reported revenue of $10.7 million for the third fiscal quarter ended December 31, 2003, a record quarter, and an increase of 50.9% from revenue of $7.1 million for the quarter last year. Net income for the quarter was $1.1 million, an increase from net income of $108,000 last year. Basic and diluted earnings per share for the third quarter were $0.06, as compared to $0.01 per share last year. Activity in the downstream and upstream sectors of the petroleum industry, as well as other traditional markets, was strong in the third quarter.

Revenue was $26.0 million for the nine-month period, up 28.6% from revenue of $20.2 million for the period last year. Net income for nine months was $1.5 million, up from net income of $752,000 last year. Basic and diluted earnings per share for nine months this year were $0.08, as compared to $0.02 per share last year. Earnings were reduced by $0.03 per share in the second quarter of this year, as a result of the provision for impairment of the agreement receivable from ZCL Enviro Systems, Inc. of $880,000 ($580,000 after tax). Convertible subordinated debenture costs of $461,000 were deducted in the calculation of earnings per share for the nine-month period last year, and with the repayment of the debenture in September 2002, these costs were not incurred this year.

“Our third quarter was an overall record in terms of revenue from liquid storage systems. Notwithstanding that the fourth quarter traditionally has a lower level of activity, we remain on track to meet our overall growth objectives for this fiscal year, and the outlook for next year is very positive,” says Ven Côté, President and CEO. “We are positioned for growth through continued strength in our traditional markets, as well as new products. Our current focus is the development and marketing of our tank lining technologies.”

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.

Unaudited interim financial statements for the period ended December 31, 2003, along with management’s discussion and analysis, will be mailed and filed on SEDAR in accordance with applicable regulatory requirements. 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