January 22, 2007

FormaShape™ Announces $750,000
Investment in New Technology

FormaShape™ (www.formashape.com), one of North America's leading manufacturers of composite fibreglass, announced today that it is investing $750,000 in new technology to extend its manufacturing capabilities. The acquisition of the PaR Systems Inc. MRTM 125 Marine Milling 5-axis router strengthens FormaShape's™ reputation as a unique and unprecedented competitor in the industry.

"This is a very exciting time for our Company," explained Peter Jeffrey, President of FormaShape™. "This machine brings our whole operation to a new level. Our capabilities already included design, fabrication of our own molds, and the production of high volume parts using the RTM (Resin Transfer Molding) technology. Now we will be able to build our own plugs for these molds: we have effectively internalized our supply chain."

"With this acquisition, we will be able to repatriate work that we are currently outsourcing to the United States, thereby eliminating wait times and reducing production costs. We will stand alone as the only composite manufacturer with the ability to provide a complete one-stop full service for large, high volume and high quality composite parts," Jeffrey added. FormaShape will also be offering its 5-axis and mold fabrication services to other composite manufacturers in western North America.

The 5-Axis Computer Numeric Control Router (CNC Router) will provide automated milling and fabrication of three dimensional objects. The machine has an X-axis of 45 feet / 13.7 meters, a Y-axis of 20 feet / 6.1 meters and a Z-axis of 8 feet / 2.4 meters. It can build precise 3D shapes ranging from the size of a basketball up to a 40 foot boat hull. Currently, FormaShape builds some parts that exceed 160 square feet, or 15 square meters. Other industries with need of large composite parts include: marine, semiconductor, medical equipment and civil infrastructure.

FormaShape™ will take delivery of the machine in August and plans to have it operational in September.

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