Thursday, June 3, 2004
International Barrier Completes US$1 Million Acquisition of Pyrotite Fire Retardant Technology
Acquisition Opens Global Sales & Licensing Opportunities for Unique Fire Resistant Building Materials
Watkins, MN, Vancouver, BC, May 4, 2004 - International Barrier Technology, Inc. ("Barrier") (IBTGF: OTCBB; IBH: TSXV), a manufacturer and marketer of fire resistant building materials, completed the acquisition from Pyrotite Corporation of the Pyrotite fire retardant technology, Pyrotite trademark, US and international patents, and know-how (collectively, "Pyrotite Technology") for US $1 million on June 2, 2004. Based on Barrier's success in developing a US market and sales for Blazeguard®, its award-winning, fire resistant wood panel, this acquisition now enables the company to significantly expand market opportunities and sales growth of Blazeguard and the Pyrotite Technology in new countries, new applications, and through new business strategies such as licensing.
"Barrier is well positioned to capitalize on the acquisition of Pyrotite™ Technology," said Mike Huddy, president. "Top US homebuilders are users of Blazeguard and demand has never been stronger for this effective fire-rated sheathing, with record sales announced for the first quarter. For the first time, Barrier has the opportunity to pursue corporate growth without license limitations and the obligation to pay royalties on sales revenue. Our current focus has been extended to establishing licensing relationships with industry leaders in the U.S. and international markets, in existing as well as promising new applications. With $8.7 billion in residential and commercial property damage caused by fire in the US in 2002, and $3.0 billion in damage caused by the California wildfires alone in 2003, there are clearly significant unmet needs for effective materials to help protect people and property from fire. Blazeguard and the Pyrotite Technology can help meet these needs."
Barrier's acquisition of the Pyrotite technology provides the following opportunities and benefits:
About International Barrier Technology Inc.
- Licensing and other business models: Barrier will have the unrestricted ability to establish licensing and other business arrangements with third parties worldwide. This enables Barrier to leverage the resources of companies with expertise in particular applications and countries to accelerate the commercialization of Blazeguard and Pyrotite.
- New applications: Barrier's Blazeguard® wood panels are currently used as fire resistant sheathing in residential and commercial modular buildings. Potential fire resistance applications in engineered wood products, paint, plastics, and expanded polystyrene significantly broaden the array of new product and market opportunities.
- Geographic extension from the US to global markets: Many countries use construction methods and have emerging building codes favoring building materials that help protect people and property from fire, adding significant new target markets.
- Eliminates sales royalties payable by Barrier. The agreement excludes certain specific applications that are not part of Barrier's current business or intended business plan, for which Pyrotite Corporation will pay Barrier a royalty. With no royalties payable by Barrier, the company has a significant incentive to develop new geographic markets, applications, and licensing relatio
International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials. Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire. Barrier's award-winning Blazeguard wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard customers include Centex (CTX: NYSE), D.R. Horton (DHI: NYSE), KB Home (KBH: NYSE), and Lennar (LEN: NYSE). Lowe's Companies (LOW: NYSE), Stock Building Supply, and Mule-Hide Products Co., Inc. are Blazeguard distributors. Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene
Barrier is part of the DJ Building Materials Index (US)
INTERNATIONAL BARRIER TECHNOLOGY INC.
Per: "MICHAEL HUDDY"
President & Director
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.
Dawn Van Zant, ECON Investor Relations, Inc.
Source: International Barrier Technology Inc.
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