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ICI signs an Option Agreement with Barclays to License Housing Products in Five African Countries

^{Published on 2010-09-29 06:15:22 - Market Wire}
 

Estimated annual revenue per license forecasted at USD $6,000,000

TORONTO, Sept. 29 /CNW/ - Innovative Composites International Inc. (IC:TSX-V) ("ICI" or the "Company"), is pleased to announce it has signed an Option Agreement ("Agreement") giving Barclays Gedi Group ("BGG") an exclusive option to license ICI's patent protected housing design in 5 African counties. BGG is a privately held US company providing a full range of construction services that has pioneered the field of quality, feature-rich living environments for families with low to moderate incomes, primarily in the Middle East and Africa and has built over 25,000 residential units in a total of 226 completed projects worldwide.

According to the Agreement, BGG has 9 months to execute license agreements for the 5 countries and ICI would be paid a USD $250,000 one-time fee for each country it licenses. BGG would fully fund a manufacturing facility in the respective countries including all of the capital equipment, any of ICI's management and engineering time and all other related expenses. ICI would retain a 20% ownership stake in each facility as well as a 12% royalty on built houses. BGG would indemnify ICI against any losses or liability associated with the plant or products.

BGG conservatively estimates annual housing sales at approximately USD $50,000,000 per country which would put ICI's royalty stream at about USD $6,000,000 for each license granted.

"ICI's housing products are a great solution for Africa because of the energy efficiency, durability and virtually unlimited appearance variations. Utilization of thermoplastic allows for fast cycle times and therefore lower cost, which is an enormous advantage in the emerging African market," said Wayne Gerl, President of Barclays Gedi Group.

"This arrangement represents a potentially very significant revenue stream with no downside to ICI and its shareholders," commented Terry Ball, President of ICI. "BGG has the resources, experience and know-how to build large scale affordable housing projects and the fact that they have selected ICI's product is a great validation of our capabilities. We look forward to executing license agreements and to start building these manufacturing facilities in Africa in the near future," he added.

About Barclay's Gedi Group.

In 2003, the principals of Barclays Group International, Gedi Construction and Gerl Construction merged to form the Barclays Gedi Group (BGG), an international construction consortium with over 100 years of combined experience delivering large-scale development projects across the globe. Recently, BGG has been expanding rapidly in emerging economies with construction projects and operations in Algeria, Libya, Qatar and Tunisia.

To date, Barclays Gedi Group has implemented more than 226 projects internationally. Projects range from retail centres to large-scale residential projects in all corners of the world.

About Innovative Composites International Inc.

Headquartered in Toronto, Canada, ICI is a high-tech engineering and manufacturing company established in 2007 by a group of entrepreneurs with a successful track record in commercializing advanced materials.

The Company is currently focused in two areas: Structure Lite(TM) panels, a unique line of application-ready structural composite panels and Hero 451(TM), a line of environmentally friendly fire inhibitors and suppressant. ICI's goal is to deliver products that exceed industry standards with greater durability, strength, flexibility and safety.

ICI is partnering directly with leaders in its target industries as it considers it to be the fastest way to bring products to market. ICI's customized solutions are intended to provide partners with material advantages over their competitors.

To find out more about Innovative Composites International Inc. (IC: TSX-V), please visit our website at [ http://www.innovativecompositesinc.com ]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

"Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections."

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