Summerwood Industries Inc. Announces Major Transaction

Summerwood Industries Inc. recently announced that it has received the conditional approval from The Alberta Stock Exchange for its Major Transaction.

As announced on March 17, 1997, Summerwood intends to purchase all of the issued and outstanding shares of Recycled Solutions for Industry Inc. ("RSI"), an Alberta industrial coatings corporation, as its Major Transaction. The Corporation will issue 17,750,000 shares, at a deemed price of $0.20 per share, in exchange for the issued and outstanding shares of RSI.

It is intended that the shares of RSI will be purchased by the Corporation pursuant to an Offer to Purchase/Take-over Bid Circular which the Corporation will distribute to the shareholders of RSI. The Offer to Purchase will be open for acceptance until September 15, 1998. The Corporation has set September 15, 1998 as the date of the shareholders meeting which will be held in order to approve the Major Transaction. If the Major Transaction receives approval at this meeting, the Corporation intends to take up and pay for all RSI shares tendered pursuant to the Offer to Purchase no later than September 18, 1998.

RSI is an Alberta corporation that is engaged in the blending, development and distribution of industrial coating products marketed under the trade name "Uni-Seal". These coating products are a combination of a two-part hybrid urethane formulation that includes recycled crumb rubber, obtained from scrap tires, and selected chemicals. Several multipurpose formulations have been developed which provide the essential properties required of maintenance coatings including water resistance, tensile strength, adhesion, flexibility, varying thickness, non-conductivity, elasticity and hardness. The products are different from many existing coating products which utilize epoxies and resins, by the application of a "green solution" of recycled tires which provides a non-toxic, UV resistant alternative for the coatings industry which is free from volatile organic compounds.