CPI Plastics Group Ltd.: Eon'R' Fencing And Decking To Be Distributed By Universal Forest Products Inc

Business Wire, Nov 22, 2005

TORONTO -- Landmark agreement to expand market for premium wood-alternative outdoor living product

CPI Plastics Group Ltd. (CPI)(TSX:CPI), maker of Eon(R) decking, fencing, and railing, as well as spa cladding and accessories, has entered into an exclusive agreement with Universal Forest Products Inc. (UFP) that will see Eon(R)'s premium engineered plastic decking, railing and fencing products distributed to big-box retailers, other independent retailers and building customers throughout the United States.

"We are excited by this opportunity to partner with Universal Forest Products and to harness the power of their national distribution system and marketing efforts," said Ronald Mitchell, President, CPI Plastics Group. "This agreement is in line with our overall strategy for growing the market for Eon(R) products in the U.S., and for establishing Eon(R) as the premium wood-alternative for outdoor living needs. The momentum from this agreement, and similar efforts going forward, will allow retailers to leverage Eon(R)'s unique features and multiple applications to help consumers create the outdoor living spaces of their dreams."

The Eon(R) decking system is a premium, highly engineered product that includes deck boards, cladding, a wing clip fastening system, and a fast and easy-to-install railing system. It comes in six colors and provides the beauty and feel of natural wood without splitting, fading, cracking and warping. Unlike competing composite technologies, Eon(R) does not contain organic materials, which are vulnerable to the elements. The Eon(R) fencing system, to be launched in the fourth quarter of this year, includes six-foot panels in two colors (redwood and cedar) and two styles; a complete privacy panel and a panel with a lattice top. The fence panels come packaged and ready-to-assemble.

"Eon(R) is a superior product with a track record of success, manufactured by a company committed to quality, customer service and integrity," said Universal Forest Products' CEO William G. Currie. "All of those things make it an attractive addition to the Universal portfolio."

Universal Forest Products is the leading manufacturer and distributor of wood and wood-alternative products in the U.S. With more than 9,000 employees and 100 facilities coast-to-coast, Universal's strong national presence allows it to serve large retailers like Home Depot, as well as thousands of smaller, independent businesses, home-builders and contractors across America. Universal will use its existing national distribution systems, and may add to those systems, to create additional opportunity for Eon(R) products.

"The distribution deal with Universal is a landmark agreement for CPI," said Mitchell. "We are pleased by the confidence an industry leader like Universal is demonstrating in Eon(R) products. We believe this confidence is well placed. In Eon(R) Universal gains a dependable and unmatched wood-alternative product that complements its other product lines, while Eon(R) will benefit from Universal's very strong relationship with Home Depot and the independent dealer network throughout the U.S."

About CPI

CPI Plastics Group Ltd. is a Canadian-based plastics processor and a recognized international leader in thermoplastics profile design, engineering, processing and value-added manufacturing. CPI is comprised of three key divisions. CPI's Outdoor Living Products Group manufactures and markets Eon(R) Decking and Fencing Systems, as well as high value added cladding and accessory components to the outdoor hot tub/spa industry. CPI's Film Products Group manufactures and markets the Rack Sack(R) household refuse management system and a wide range of branded and private label household and industrial refuse bags. CPI's Custom Products Group supplies leading OEM manufacturers with custom profile solutions to enhance quality, cost effectiveness and process ability. Based in Mississauga, Ontario and Pleasant Prairie, Wisconsin, CPI's dedicated team of over 800 employees currently manufactures out of six plants occupying 530,000 square feet of manufacturing space and housing over 135 extruders. To learn more about CPI, visit our website at www.cpiplastics.com.

About Universal Forest Products

Based in Grand Rapids, Michigan, Universal markets, manufactures and engineers wood and wood-alternative products for D-I-Y retail home centers; structural lumber products for the manufactured housing industry; engineered wood components for the site-built construction market; and specialty wood packaging for various industries. It also provides framing services for site-built construction customers. In 2004, Universal reported sales of $2.45 billion.

CPI Plastics Group Ltd. (TSX:CPI)