Cyclics and Lomotek Agree to Develop South African Rotational Moulding Market; Lomotek Polymers to Bring Innovative Plastic To Customers

SCHWARZHEIDE, Germany--March 16, 2005--Lomotek Polymers Pty. Ltd., has entered into an agreement with Cyclics Corporation to be the distributor for CBT(R) resin for rotational moulding in South Africa. Lomotek's technical expertise, innovative customer base and strong financial backing played a key role in Cyclics decision to target South Africa for early introduction of its CBT resin products.

Key initial applications for the region include fuel tanks, shipping barrels and specialty mannequins. Lomotek, in conjunction with their customers, will take a lead on developing a unique aspect of CBT resin in rotational moulding; the ability to adhere to polyethylene as an inner skin. Since CBT resin polymerizes into PBT, the inner layer of PBT provides fuel barrier properties and chemical resistance, while the polyethylene layer will help to minimize the overall system cost. Lomotek will also investigate using CBT resin in casting systems to produce high end bathroom fixtures and bench tops.

"Lomotek had a vision for rotational moulding applications employing our CBT resin from the very first discussion," said John Ciovacco, Head of Global Marketing for Cyclics Corporation. "Their engineering plastics background, broad plastics experience and willingness to invest in growth make them an ideal early partner."

Lomotek Polymers to Bring Innovative Plastic to Customers

"The rotomoulding industry has long been looking for a polymer that can achieve excellent aesthetics, high stiffness, high heat distortion, good chemical resistance and the ability to use existing painting and repair techniques--all rolled into one polymer," said Clive Roberson, Director Marketing and Operations. "This could well be the breakthrough that will allow the rotomoulding industry to move into a new level of product performance."

Initial trails at a leading South African rotational molder have been highly successful and encouraging. "At Roto Solutions we are looking to build our business on developing rotational moulding technologies," Gary Lategan, Director of Roto Solutions, the development arm of Atlas Plastics Pty. Ltd. in Klerksdorp, South Africa. "Our experience with CBT resin shows a wealth of exciting opportunities and growth into entirely new markets."

Cyclics first CBT resin plant, in Schwarzheide, Germany, will achieve an annual rate of over 10 million pounds in 2006. By the fourth quarter of 2005, Cyclics will announce the location of their second plant, expected to have an annual capacity of 50-100 million pounds. There has been no decision as to the new plant's location, with a number of sites currently being considered.

Cyclics Corporation, headquartered in Schenectady, New York, U.S.A. and its wholly owned subsidiary, Cyclics Europe GmbH based in Schwarzheide, Germany, manufacture innovative plastics that offer breakthroughs in processing, making new products possible and changing the economics of existing ones. The water-like processing viscosities of Cyclics' engineering thermoplastic products offer improvements in performance and productivity for structural composites, compounding, casting, nanocomposites, coatings and rotational moulding. Cyclics has alliances with Ahlstrom Glassfibre Oy, Alcan Composites, BASF, Davy Process Technology, Dow Automotive and The P Group.

Lomotek Polymers (Pty) Ltd., part of the Lomold Group of companies based in Cape Town South Africa with offices in Johannesburg has a primary focus of producing high quality color compounded polyethylene powders for the rotational moulding market in South Africa. Further to their focused business the management of Lomotek Polymers has a wealth of knowledge and experience with high-tech engineering polymers spanning across the entire plastics industry in South Africa. The founding principle of Lomotek Polymers is to advance mutually beneficial business growth.

(R) CBT is a Registered Trademark of Cyclics Corporation.