Urecoats Industries Announces Test Results andDistribution Rights for the Southern Hemisphere...

Business Editors

POMPANO BEACH, Fla.--(BUSINESS WIRE)--April 27, 2000

Urecoats Industries Inc. (the "Company"), a developer of roofing, sealant, and coating products through its wholly-owned subsidiaries Urecoats International, Inc. and Urecoats Technologies, Inc.,

Larry T. Clemons, President and COO of Urecoats Industries, states: "As we are aggressively moving out of Research and Development and into real world manufacturing, Urecoats is pleased to share information to our shareholders and the public at large. Remember it was just January of 2000 when we completed our fully functional proto-type tri-polymer spray applicator. Since then we have completely focused our time on testing and there will be a lot of testing to do. Be patient. By May 25th of 2000, we will complete two full productions, commercially viable delivery systems. Both systems will immediately be used for product application and additional testing. Urecoats must establish application procedures and safety protocols to advance towards market penetration. Three more systems will be completed by July 15th of 2000 (approx.) and these also will have pre-determined destinations for Company/Product profile and product application. As far as specific test results, there are two that we will release today."

1. THE WIND-UPLIFT TEST: In accordance with Factory Mutual Protocol, FMRC 12/24 wind-uplift pressure test Appendix D and the Dade County roofing protocol PA-114-95 Appendix D for simulated uplift pressure resistance of adhered roof systems assembly.

RESULTS: The simulated uplift resistance resulted in a passing pressure of 297.5 psf. The pressure ranging from 30 psf to 600 psf were increased in increments of 15 psf and held for one minute. The mode of failure was non-existent. URECOATS 100(TM) RUBBER SEALANT MEMBRANE(RSM)(TM) exceeded the limits of the testing equipment. As you are reading this the testing lab is ordering a new uplift machine with more resistance. Soon we should be able to see how far beyond 600 psf we can take our product. Obviously the test lab has never SEEN a waterproofing sealant with such magnificent adhesion and bonding characteristics.

Independent Roof Testing of South Florida, Inc. ("IRT"), has been involved with this product from its inception through all phases of research and development. Shirad Ali, General Manager of IRT, had this to say about the Urecoats product, "During the process of formulation and actually producing the product for market use, it became evident that due to Urecoats' ability to be integrated into and compatible with other systems, because of its excellent physical properties and exceedingly high wind uplift characteristics, the product has the potential to become a complete roof system. As a result, the Company will be able to stand alone and at the same time create additional markets by using the product as an adhesive for the attachment of insulation and a membrane to various substrates. It must be noted that this combination (bonding and wind uplift characteristics) does not exist in other roofing and/or waterproofing systems. IRT can say with confidence that the product URECOATS 100(TM) RUBBER SEALANT MEMBRANE(RSM)(TM) has met and exceeds all the set goals for which it was designed."

Urecoats has also retained Intertek Testing Services ("Intertek"), "The world's largest product testing laboratory". With Intertek's worldwide infrastructure and the Warnock Hersey Certification the foundation for our products entry into the worldwide marketplace will be widely and efficiently accepted. Urecoats next test result was for waterproofing.

2. WATER VAPOR TRANSMISSION AND PERMEATION: The water vapor transmission was conducted according to ASTM E 96-95. The samples were prepared according to the specifications of ASTM, D409.

RESULTS:

SAMPLE            WATER VAPOR TRANSMISSION     WATER VAPOR PERMEANCE
under 2 mm        0.024 g/hr/m2                4.819 ng/pa*s*m2
under 4 mm        0.018 g/hr/m2                3.536 ng/pa*s*m2

In conclusion the permeation and transmission levels are extremely low showing water repellent characteristics of a hydrophobic nature.

Dan Striebel of Intertek states, "We look forward to the testing of the Urecoats 100, Rubber Sealant Membrane for a "Class A" rating for combustible and non-combustible roof deck installations. We are confident in your new and highly innovative product that truly creates solutions for the building owner by creating a waterproof and fire retardent roofing material from recycled materials."

Mr. Clemons is pleased to announce the results of continued negotiations with Team Mexico. "Last week Mr. Antonio Domit of Team Mexico spent three days at Urecoats Industries finalizing arrangements for Urecoats' No. 2 delivery system to be shipped to Mexico City around June 26, 2000 for product unveiling. At that time it will be announced that contractual distribution rights for Mr. Domit and Team Mexico will include South America, Central America, Mexico, and the Caribbean Islands. Quotas, proformas and other pertinent information in relation to this Agreement will be released July 2000." Mr. Clemons further remarked, "that URECOATS 100(TM) RUBBER SEALANT MEMBRANE(RSM)(TM) cross-over industry appeal will make our product and distribution program a win-win situation for all of our future partners."

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed or implied in this release.

NOTE TO EDITORS: In the WATER VAPOR PERMEANCE section of the table, there is an asterisk between "pa" and "s" and between "s" and m2 (m to the second power). This symbol may not appear properly in some systems.