Raytec Development Corp.: Spin-off of Technology Division Completed as EPA Approval Pends.

Business Editors/High-Tech Writers

PORTLAND, Ore.--(BUSINESS WIRE)--July 25, 2003

Company Prepares to Launch Marketing

The Company has received final approval from the TSX Venture Exchange for the spin-off of their technology division, Raytec Technologies Inc. In the

"This transaction is a critical step forward for shareholders of both companies," according to Jerry Minni, Raytec's President & CEO. "Raytec is freed from subsidizing technology development and overhead costs; that is good for our cash flow. From a balance sheet perspective, 29 million shares of the newly-public Avantec significantly enhances our balance sheet."

Upon receiving full EPA approval, Avantec will immediately begin selling the Sani-T Bag to buyers from various industrial sectors it has developed over the past two years. Raytec, in addition to operating its perishable-food control business, will begin introducing the Sani-T Bag to their existing client base market of 60% of the US retail grocery business.

"There are countless markets for the Sani-T Bag technology," according to Bernardo Rico, President and CEO of Avantec, "from reducing spoilage losses in the food industry, sanitizing hard surfaces anywhere, to killing pathogenic bacteria such as Anthrax. By separating the two companies each can develop independent markets based upon different but complimentary marketing strategies. Raytec's strength is in the retail food industry in the US and Canada."

"We are the dominant supplier in that market with over eighteen year's experience building relationships and solving our clients' problems. In anticipation of EPA approval, we have approached several of our largest retail grocery clients and they have expressed significant interest in the Sani-T Bag. Once the EPA grants us final approval we will begin with trials immediately, said Jerry Minni."

About Avantec (AVV)

Avantec, a subsidiary of Raytec Development Corp., is a manufacturer of specialty antimicrobials with particular emphasis on dry-media chlorine dioxide. It's leading product, Sani-T Bag(TM), has EPA registration and is currently being commercialized as a biocide for cooling towers and allows for the safe and low cost production of chlorine dioxide for a variety of uses, such as hard surface disinfecting, food processing, odor control, controlling the ripening and shrinkage of produce, and military uses in remote areas. The company is also expecting registration for hard surface sanitation. AVV's manufacturing and laboratory facilities are located in Columbus, OH.

About Raytec (RAY)

Established in 1979, Raytec currently ranks as the leading manufacturer, developer and marketer of perishable-food control systems for the North American commercial grocery industry. Clients include such household names as: Albertson's, Fred Meyer, Lowes Foods, Safeway and Winn-Dixie, Raytec's technologies help the food industry improve profit margins by reducing product loss, enhancing product quality and controlling safe food processing.

RAYTEC DEVELOPMENT CORP.

Jerry A. Minni

President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.