RTI's Revenues for Fiscal 2001 Exceeded $2.3 Million But Fall Short of Projections

    LOS ANGELES--Jan. 18, 2002--Rubber Technology International, Inc. (OTCBB:RTEK) announced today that unaudited gross revenues for fiscal 2001 fell short of projected revenues but exceeded $2,300,000.
    Annual sales for 2001 reflect more than a 200% increase in sales over fiscal 2000 revenues. Audited financials for the fiscal year ended November 30, 2001 are expected to be filed with the company's annual report on Form 10-KSB by February 28, 2002.
    Trevor Webb, president of Rubber Technology International, stated that Fourth Quarter results were below the company's expectations, substantially due to the mid-September transfer of over 3.2 million pounds of asphalt rubber shipments into Spring of 2002 and the cancellation of approximately one million pounds of rubber deliveries. These events have dramatically diminished the company's cash position, postponed the acquisition of equipment and delayed the operational preparation of the company's sand and gravel division, in addition to presenting concerns as to the company's cash flow through the winter months. The company is currently attempting to develop alternative financing options to cover its cash shortfall. No assurances can be made, however, that the company will be successful in obtaining such financing or that such financings will be on terms favorable to the company.
    Webb continued, "During the first quarter of fiscal 2002, we are focusing on our molding operation and have been increasing molding production. We are developing new products and producing crumb rubber that we are using in our molding operation. We are also expanding the sale of our crumb rubber to other molding companies."

    About Rubber Technology International, Inc.

    Rubber Technology International, Inc. is a leader in the tire recycling industry, offering an ecological solution to recalled and scrap tires, grinding them into crumb rubber for use in their molded products and for sale as a raw material as well as for use as safety landing material under playground equipment.
    RTI's crumb rubber is sold to the asphalt industry for use in rubberized asphalt, which is a rapidly expanding industry as more highway departments are adding crumb rubber from scrap tires to their asphalt mixes. Tests have shown that the advantages of adding crumb rubber to asphalt are that highways last longer and are significantly quieter than conventional asphalt.

    This release may contain forward-looking statements that the company believes are within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, without limitation, continued acceptance of the company's products, legislative and marketplace changes, and governmental regulations affecting the company's operations.