ZCL Receives Installation Contract for its Lifeliner System

For Immediate Release

Edmonton, Alberta October 20, 2006... ZCL Composites Inc. is pleased to announce that it has been awarded a contract by Chevron Hong Kong Limited (Caltex) to install the LIFELINER System(tm) for a number of single walled tanks at two locations representing test sites. Upon the successful completion of these sites, the opportunity exists for multiple locations within Hong Kong and throughout Southeast Asia where Chevron (Caltex) has similar operations.

This unique UL / ULC listed internal fibreglass system allows "in-situ" upgrades of a single wall tank to a secondary contained lining system using a patented three dimensional glass fabric combined with a proprietary state-of-the-art curing system. There is a very large and growing need for upgrading both underground and aboveground liquid storage, driven by environmental legislation and industry standards requiring secondary containment for storage of hazardous liquids.

Further opportunities exist in North America and Southeast Asia for the corrosion free storage of new fuels including the new ethanol blended fuels and other blends now being legislated in certain parts of Canada and the USA. We have also received an order from Shell Canada to upgrade a number of sites in Ontario to complete before calendar year end.

"The potential for generating considerable revenues from this technology is very exciting," says Ven Côté, President of ZCL Composites Inc. who went on to say, "This is a quick start on multiple fronts from North America to Southeast Asia where the potential for thousands of sites exists for making the LIFELINER System(tm) and the Phoenix Lining System® the preferred method of secondary containment of existing single walled tanks. This new generation of environmental protection will change our industry. This officially confirms the commencement of this long awaited system."

ZCL Composites Inc. trades on the Toronto Stock Exchange under the symbol "ZCL" and is Canada's largest manufacturer of fiberglass underground storage tanks.

For further information, please contact:

Venence G. Côté President & CEO ZCL Composites Inc. (780) 466-6648 Ven.Cote@zcl.com

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