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'SURF' Completes Reg. D Rule 504 Financing

7 April 1999

'SURF' Completes Reg. D Rule 504 Financing

    SCOTTSDALE, Ariz.--April 7, 1999--American Surface Technologies International, Inc. (NASD Electronic Bulletin Board:SURF) is pleased to announce it completed it's 504 financing for $990,000 at $2.00 per share on March 31, 1999.
    This funding was placed in the United Kingdom and Switzerland with Institutional Investors and Specialized Environmental Funds.
    The use of proceeds for this financing will be the completion of the worlds first ever ready mixed, pour in place, rubberized resilient surface manufacturing plant in Calgary, Alberta. Additionally, a portion of the funds will be allocated to increased infrastructure and sales and marketing expenditures to meet industry needs as we move to the roll out of our patent pending and proprietary SP2 and Wearing Course (WC) product lines.
    We also continue to expand our sales and product opportunities here in the USA as well as in the United Kingdom and Europe. April will be the first month in which we begin shipping product from our production plant in Calgary, Alberta to customers and potential business partners in the United Kingdom, Switzerland, Netherlands, Arizona, California, Michigan and Alberta. We are currently scheduled to do a number of beta and commercial sites this month. As we approach the busy summer season of June, July and August we anticipate a substantial increase in demand for our product for use in a variety of environments. This demand will be driven by the latest legislation dealing with Safety and Head Impact Criteria as specified for playgrounds in compliance with the consumer Product Safety Commission guidelines and the requirements of the Americans with Disabilities Act.
    American Surface Technologies International, Inc. is the exclusive Licensee of the recently developed (patent pending) pour in place recycled tire rubber surfacing product SP2. SP2 is a polymer/rubber crumb based surfacing product, which eliminates the need for on site mixing of chemicals, binders and raw materials. SP2 puts 'THE SCIENCE IN THE DRUM' by having pre-mixed, ready to install, energy absorbing, pour in place rubber crumb.
    Forward looking statements and comments in this news release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the companies to complete the transaction and enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the company from time to time with the Securities and Exchange Commission in the future.