News Release

ARC, Genics Inc. commercialize technology to prevent mold, decay in wood building products

Business Announcement

Alberta Research Council Inc.

EDMONTON (November 24, 2004) - The Alberta Research Council Inc. (ARC) together with Genics Inc., of Acheson, Alberta, have developed a technology to prevent mold, decay and termite attacks in wood composite products such as oriented strandboard (OSB). Called CobraCrushTM, the technology has been proven safe and effective for the applicator and the environment, and is already approved for use in the US by the Environmental Protection Agency (EPA). Genics is also finalizing a similar certification arrangement with the Pest Management Regulatory Agency (PMRA) in Canada.

"We're very excited about this new product we've developed with ARC's expertise and facilities," says Wesley Wall, vice-president, Product Development, Genics Inc. "Our Cobra line of products have undergone more than three years of laboratory testing and the results have been successful while maintaining the physical properties of the wood composite. We have developed a strong body of data to support our product claims."

The technology involves embedding amorphous glass crystals in OSB along with the resin during the panel manufacturing process. The crystals are embedded by spraying a copper borate powder onto the chips before they are pressed into a panel. Extensive research on this product was conducted under confidentiality agreements with ARC, the Universities of Hawaii and British Columbia, and Forintek, a Canadian consortium of forestry companies interested in creating and applying innovative concepts, processes, products and education.

"One of the challenges that the building and housing manufacturers face today is mold and decay within the wall cavity," says Rob Wellwood, manager of ARC's Forest Products business. "Our unit's role at ARC is to partner with industry to address issues like this and to develop technologies, which will add value to the wood composites industry. "

Our scientists are very experienced at helping companies bring innovative products from the laboratory to the marketplace where the consumer will ultimately benefit."

ARC and Genics Inc. have a history of partnering to develop innovative technology. In 1999, the two organizations developed another wood preservative product called Post GuardTM, to extend the useful life of utility poles.

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The Alberta Research Council develops and commercializes technologies to give clients a competitive advantage. A leader in innovation, ARC provides solutions globally to the energy, life sciences, agriculture, environment, forestry and manufacturing sectors. ARC's Forest Products group offers a full-service research and testing facility for engineered composite panel products, new processes and product testing, and scale-up capabilities to help reduce manufacturing costs and give clients a competitive advantage for value-added products.

Genics Inc., part of the ATCO Group of companies, develops, manufactures and markets a complete array of innovative wood preservatives for the utility, commercial and residential markets.

For more information or to arrange an interview, contact:

Bernie Poitras
Corporate Relations
Alberta Research Council Inc.
Edmonton, AB
Tel: (780) 450-5145
E-mail: poitras@arc.ab.ca

Wesley Wall
Genics Inc.
Acheson, Alberta
Tel: (780) 962-1000
E-mail: Wes.Wall@genicsinc.com


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