MAINZ, Germany, Feb. 28, 2006 (PRIMEZONE) -- Coattec Industries, Inc. (Pink Sheets:CTCK) announces that the Company is in discussions with Diversi-Plast, the world's largest manufacturer of corrugated plastic products, to manufacture Coattec's proprietary roofing foils and housewraps Coattecflex(tm), Coatflex(tm), and Difflex(tm) for distribution in the United States.
Both companies plan to investigate the feasibility of subcontracting production of Coattec's roofing products within the existing facilities of the LDI Group, which owns Diversi-Plast. If an agreement were to be reached, Coattec and Diversi-Plast would work together to determine the most effective sales and distribution channels within the U.S. market.
The outsourcing of manufacturing in the United States corresponds with the Company's initial business strategy. In addition to realizing great cost savings as a result of outsourcing, Coattec will be able to market its proprietary roofing products in the U.S. more rapidly than if it were to construct its own manufacturing facility.
Bernd Meinecke, President and CEO of Coattec Industries, commented, "We are pleased to begin discussions that will advance the U.S. manufacturing and distribution process of our roofing foils and underlays. With the successful execution of the non-competition agreement with Diversi-Plast announced earlier this year, it is a logical next step to strengthen the foundation of our business relationship and explore manufacturing opportunities within the United States. It is very important that we maintain the integrity and quality of our proprietary products during the manufacturing process and we have full confidence that Diversi-Plast can help us achieve this."
Bernd Meinecke, President and CEO of Coattec Industries also stated that the Company is fully aware of the circulation of unsolicited faxes about Coattec. He has reaffirmed that the Company is not responsible nor are any parties commissioned by the Company responsible for these faxes and Coattec is doing everything in its power to identify and pursue those responsible and put an end to the campaign.
For further information, please contact Bernd Meinecke at contact@coattecindustries.com or visit www.coattecindustries.com.
About Coattec Industries, Inc.
Coattec Industries owns the exclusive license to technology to create a proprietary coating that has applications in various industries, primarily the residential housing market. The main use of the Company's coating will be for roofing foils and housewraps that provide insulation and a humidity barrier while inhibiting the growth of mold in new homes. The coating's antibacterial properties make it useful in other industries including the home improvement industry as filters for air conditioning units, the automotive industry as a potential replacement for PVC, and the glass industry for abrasion control.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.