RCAI Quarterly Financials Shows Significant Progress

LAKE FOREST, Calif.--May 19, 2004--RCAI (Reclamation Consulting & Applications Inc.) (OTCBB:RCAA) announced that the company's third quarter financial statements showed significant progress.

RCAI's operating net loss has dropped from $1,001,695 in the second quarter ended Dec. 3, 20031, 2003 to $221,153 in the third quarter ended March 31, 2004. Of the $221,153 quarterly loss, $182,593 is comprised of legal settlements and related attorneys fees (non-operating expenses), making the actual operating loss only $38,560. This represents a $963,135 improvement over last quarter.

RCAI's income statement now shows sales are being realized with approximately $114,000 in receivables booked in the third quarter as compared to only $6,000 booked in the previous quarter.

Gordon Davies, president and director of RCAI, stated: "The company's third quarter financial statements show that RCAI is well on its way to profitability. Re-structuring, which management undertook in 2003 with the goal of significantly reducing overhead while maximizing profit, is proving to be very successful." Mr. Davies went on to say: "This quarter's financials clearly show that operating expenses have been brought under tight control. With the 2004 construction season now underway throughout the U.S.A. and Canada, we are seeing expected increase in sales and a great deal of success in the development of new markets."

About RCAI's Products

The ALDEROX(TM) line of non-stick products is a completely non-hazardous, ready-to-use, 100% biodegradable blend of natural materials. With the use of this product asphalt slides easily from truck beds, concrete is easily released from forms and molds and clay/mud is easily removed from the undercarriages of vehicles. The use of ALDEROX(TM) products has been proven to substantially reduce operating and maintenance costs.

About RCAI

With headquarters in Lake Forest, RCAI develops, manufactures and markets a range of environmentally friendly asphalt release agents (ALDEROX(TM) ASA-12(TM)), concrete form oils (ALDEROX(TM) KR7(TM)) and non-stick industrial vehicle and equipment coatings for the oil-sands harvesting and mining industries (ALDEROX(TM) TSR(TM)) based on proprietary, patent-pending ALDEROX(TM) formulation technology. RCAI is also the exclusive distributor of bio-diesel to the commercial marine industry worldwide for Topia Energy Inc., Canada's largest producer and supplier of bio-diesel. RCAI is represented in the United States by North American Systems Inc., in Canada by Canadian Release Agents Inc. and in Puerto Rico and the Caribbean by CHC LLC.

Forward-Looking Statements

Except for any historical information contained herein, this news release contains forward-looking statements regarding the company's future financial performance, the performance of new products and the company's ability to bring new products to market that involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms and conditions associated with licensees', the impact of competitive products and pricing, and general economic conditions as they affect the company's customers, as well as other risks detailed from time to time in the company's SEC reports.

For more information about RCAI and the company's comprehensive list of product offerings, call the company directly at tel. 949-609-0590. Information can also be requested via e-mail to info@rca-inc.com or through RCAI's Web site at http://www.rca-inc.com. RCAI's head office is located at 23832 Rockfield Blvd., Suite 275, Lake Forest, CA 92630.

Note to Editors: The RCAI logo, ALDEROX(TM), ASA-12(TM), KR7(TM) and TSR(TM) are registered trademarks of Reclamation Consulting & Applications Inc.