Coattec Industries, Inc.: A Washington corporation

owns the exclusive license to technology to create a proprietary coating that has applications in various industries, primarily the residential housing market. The main use of the Company’s coating will be for roofing foils and housewraps that provide insulation and a humidity barrier while inhibiting the growth of mold in new homes. The market for house-wrap and roofing foils in the USA is estimated at more than 6.5 billion sqf per year. Based on the coating’s antibacterial properties, it also has several other uses in different industries. These uses include filters for air conditioning units, a potential replacement for PVC which is a commonly used plastic in the automotive industry, and for abrasion control in the glass industry.

BREAKTHROUGH TECHNOLOGY

• The Origin of Coattec

Coattec is a unique coating product based on secret, proprietary formulas exclusively licensed from European Environmental Technologies Corporation (EETC). Coattec’s technologies allow the application of a multi-use chemical material with characteristics combining resistance to fire and ultra violet rays, flexibility and pliability, as well as the ability to hold color and finish for long periods.

This material can be used as both a coating product and process that is capable of hosting important additives such as coloration, antibacterial materials, electric conductive materials, as well as a raw material used in manufacturing products such as vapor barriers for housing. Additionally, the material is an effective substitute for tar-lined paper and similar products offering greater elasticity and equal or superior performance characteristics and generally improved cost economies.

CTCK has been granted the exclusive rights to these coatings under a “no royalty provision.”

Coattec’s liquid coating material has several applications throughout different industries

• Market studies have indicated that the US market for Roofing Foils and Housewraps would provide the most widespread and profitable use of CTCK’s coating material

• Coattec is establishing import/export channels to take advantage of its product’s potential in both the US and European residential housing markets

CTCK MARKET ANALYSIS

Construction Industry - Housewraps and Roofing Foils
A market study conducted by the Company in September 2005 based on data from the National Roofing Contractors Association (NRCA) shows that the market segment important to Coattec is the construction market for single homes that primarily use steep slope roofs and mostly tiled roofs.

The study clearly indicates that new technologies and new building techniques are helping to increase the use of roofing foil despite the high pricing of raw materials. The market survey also shows that there is an increasing awareness regarding insulation and energy savings in house building.

The market for new construction of single homes is estimated to be at 1.4 million in 2005 and this only comprises 30% of the entire steep slope residential roof market. Re-roofing represents almost 60% of this market, where 80% of re-roofing is done my tear-off/replacement which favors the use of Coattec’s products.

The market for house-wrap and roofing foils in the USA is estimated at more than 6.5 billion square feet per year

Filter Industry
Coattec has special formulas for coating filters with
antibacterial materials that are made from natural products and are environmentally friendly. Test results with a UK firm have showed unparalleled results that show when used in air conditioning systems, the filters eliminate 98 – 99.5% of bacteria. Applications include air conditioning units, vacuum cleaning units, wallpaper in hospitals and other areas in buildings where the existence and spread of bacteria is a problem.

Rubber Industry
Coattec has special formulas applied to rubber surfaces with an aceton dissolvent to achieve friction reduction, and protect against UV and environmental influences. There was some successful testing done by BMW and Volkswagen on this for the possible replacement of PVC plastics used in cars. Benefits include: Friction reduction, UV protection, protection against environmental influences, unlimited color possibilities, noise reduction, flexiblity down to -49F and up to 356F.

PRODUCTS

Coatflex and Coattecflex ™ – An antibacterial housewrap, underlay and roofing foil that significantly inhibits mold while allowing incoming moisture to escape; resistant to tear and noise, water repellant, flame retardant and has UV protection.

Difflex – An antibacterial roofing foil that significantly inhibits mold while allowing incoming moisture to escape; resistant to tear and noise, water repellant, is flame retardant and has UV protection. Difflex is unique and superior to competing materials in the construction industry. The technology used in Difflex, when combined with air humidity, creates an antibacterial component in foils and housewraps forming a Ph value on the foil’s surface which is the highest measurement possible delivering tremendous mold inhibiting characteristics which are superior to other commercially available materials.

MANAGEMENT

Bernd Meinecke - President and Director – Mr. Meinecke has over 25 years of experience in production, engineering and general management. After serving as a manufacturing and development engineer in the French Saint Gobain Group, he worked for Corning Glass Group becoming the CEO in Germany for the German business of catalytic converters (ceramics), followed by entering as shareholder and Managing Director of Kemira Group, Finnland, an important catalytic converter manufacturer. In 1992, Mr. Meinecke was a founding member of Coattec Beschictungtechnologie, Germany.

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The foregoing statements are made under the "Safe Harbor" Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release.