ZCL Composites Inc. Reports Fourth Fiscal Quarter and Year End Results

June 8, 2004

Edmonton, Alberta June 8, 2004 ... ZCL Composites Inc. (TSX:ZCL) is pleased to report record results for the fourth fiscal quarter and year ended March 31, 2004.

Revenue for the year ended March 31, 2004 increased by 28.9% to a record $33.9 million, from $26.3 million for the year ended March 31, 2003. Net income increased by $1.2 million for the year, to a record $1,952,000 from $756,000 last year. Basic and diluted earnings per share increased by $0.09, to $0.11 in 2004 from $0.02 last year.

In the fourth quarter, revenue was a record $7.9 million this year, up by 30.1% from $6.1 million last year. Net income for the fourth quarter increased to $485,000 from $4,000 for the quarter last year. Basic and diluted earnings per share were $0.03 as compared to $0.00 for the fourth quarter last year.

Revenue in fiscal 2004 was higher than 2003 in each quarter, except for the second quarter where completion and shipment of a number of large orders was delayed to early in the third quarter. The first, third and fourth quarters of 2004 were each record quarters. Historically, the first and fourth fiscal quarters have the lowest levels of activity, corresponding to the seasonality of the installation of underground liquid storage systems in Canada.

Activity in the downstream and upstream sectors of the petroleum industry, as well as other traditional markets, was strong throughout 2004. Products introduced in recent years – home heating oil tanks, ProtektorTM and Pinnacle oilfield tanks, filament wound pressure vessels, as well as custom storage and lining systems - continue to gain market acceptance and contribute to revenue.

The increase in net income this year was due to the higher revenue, plus a recovery of prior years’ income taxes of $145,000, or $0.01 per share, in the fourth quarter. However, net income in 2004 was reduced by $880,000 ($580,000 after tax, or $0.03 per share) in the second quarter by the provision for impairment of the agreement receivable from ZCL Enviro Systems, Inc. Net income in 2003 was negatively impacted by losses incurred by Mocoat Services Incorporated and Parabeam Industries BV, purchased during that year, as steps were taken to integrate those operations into the overall liquid storage business.

Earnings per share in 2003 were reduced by $0.03 (2004 – nil) due to the costs, net of tax, of the convertible subordinated debenture. The debenture was repaid in September 2002 and these costs were eliminated. During fiscal 2004, all long-term debt was repaid.

Cash flows from operating activities increased by $2.7 million, to $6.1 million in 2004 from $3.4 million in 2003, commensurate with the increase in income before amortization, provision for impairment of agreement receivable and future income taxes.

The development and marketing of the tank lining technologies, as well as other new products, continues to be a priority. The Company is working with customers and suppliers to develop new lining materials and processes and deliver a product with superior quality and performance, along with inherently safe installation techniques. Product development costs of $141,000 were deferred in 2004.

The Company has alliance agreements and long-term contracts with many of its key customers. Subsequent to March 31, 2004, two major contracts were announced.

“Our success is based on our customers and the principles that guide them,” said Ven Côté, President and CEO. “Contracts such as these are an expression of confidence in ZCL, and our commitment and ability to consistently supply the high quality products and services that our customers value.”

“We have focused on the growth of our business, through both internal expansion and acquisitions, and have achieved our overall target for this fiscal year,” added Mr. Côté. “We will further expand domestic and international markets for our tank manufacturing and lining technologies by leveraging our innovative industry leadership and customer relationships. With continued strength in our traditional markets, and growth of new products, we expect to meet our growth objectives for the next year.”

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.

The consolidated financial statements of the Company are prepared in accordance with Canadian generally accepted accounting principles. Certain information in this news release may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties. Many internal and external factors may cause actual results to differ materially from those expressed or implied. The Company disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events, or otherwise.

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