XPEL Licenses Technology to EdgeGuard

SAN ANTONIO--Feb. 3, 2005--XPEL Technologies Corp. (CNQ:XPEL.U)

-- Revenue-Sharing Participation

-- Cross-Selling Opportunities for X-Pel Product Dealers

XPEL Technologies Corp. (CNQ:XPEL.U) announced today the signing of a software licensing agreement allowing Colorado-based EdgeGuard International ("EdgeGuard") the ability to electronically deliver products to its dealer base in exchange for XPEL's participation in EdgeGuard's revenue growth. EdgeGuard's proprietary process utilizes a 4 mil (.004 inch) UV and abrasion resistant film, which is applied to a windshield's outer edge for substantially reducing the risk of "edge cracking." Now a $3 billion a year problem, studies reveal that 83% of all required windshield replacements result from cracks started at impact points within three inches of a windshield's outer edge.

Joe Bruning, EdgeGuard's Chief Executive, stated, "Having signed an agreement for the ability to use XPEL's technology for reaching our customer base really excites me. Their software gives us the capability to rapidly accelerate our business model in a broad and highly efficient manner. What they have is exactly the missing link we have needed for successfully penetrating our large market opportunity."

W. Rege Brunner, XPEL's Chairman and Chief Executive Officer, stated, "The arrangement with EdgeGuard is one where everyone is a winner. Our existing X-Pel(TM) Dealers get the opportunity to cross sell an additional vehicle protection product for making their offering more complete. EdgeGuard can build upon their current successes by using our technology for improving their market reach, while XPEL shareholders get to participate in what appears to be a substantial growth opportunity. We firmly believe this is just the beginning for XPEL to engage in similar types of transactions in the future, exchanging our technology for exciting revenue participations."

XPEL Technologies Corp. (www.xpel.com), publicly traded on the Canadian Trading and Quotation System Exchange, is the worldwide leader in the electronic delivery of top automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company's DAP software utility offers Dealers the industry's most efficient and productive tool set for better serving customers with "best of breed" solutions in real-time. XPEL has clear advantages over the competition through its strategic relationship with 3M, and its proprietary corporate framework consisting of an expansive library of installation-friendly window tint, paint and headlight protection products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and facilities, and established and growing sales distribution channels.

Certain statements contained herein ("The arrangement with EdgeGuard is one where everyone is a winner. Our existing X-Pel(TM) Dealers get the opportunity to cross sell an additional vehicle protection product for making their offering more complete. EdgeGuard can build upon their current successes by using our technology for improving their market reach, while XPEL shareholders get to participate in what appears to be a substantial growth opportunity. We firmly believe this is just the beginning for XPEL to engage in similar types of transactions in the future, exchanging our technology for exciting revenue participations.") are considered "forward-looking statements." These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors.

The CNQ has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

Cusip: U98409102