Lenox Polymers Introduces New Product; Will Cut Mold Costs for Plastic Auto Parts.

PORT HURON, Mich.--(BUSINESS WIRE)--Dec. 17, 1996-- LENOX LIMITED (CANADIAN DEALING NETWORK LENP.) Lenox Polymers today announced the introduction of a new product line utilizing a unique resin-based composite material to produce molds which are used to manufacture plastic parts for the automotive,

The new mold products have been production-proven in the auto industry during the past two years. They are used to construct molds for production processes such as reaction injection molding (RIM), compression molding, resin transfer molding (RTM), thermoforming, and contact molding. These molds are capable of manufacturing parts in polyurethane, ABS, polyolefin, nylon, and fiberglass materials.

Automotive components such as doors, hoods, interior panels, spoilers, bumpers, etc. may be produced in molds constructed of these innovative Lenox materials.

Lenox began delivery of the new mold materials in November, and a $100,000 mold program to manufacture plastic car door interiors has been initiated and funded by a major automotive supplier. The first parts have already been produced for one of the major U.S. automobile manufacturers. Other new products using this mold system are a wing-type automotive spoiler and a structural canoe seat.

Ken Kurple, President of Lenox, said the major advantages of this mold making system are the short lead times for construction, lower comparative costs, thermal conductivity, and high operating temperature capability. "Other composite systems, such as laminated epoxy, may have poor thermal performance and life expectancy," Mr. Kurple said.

He noted that the increase in sophistication of products and the time it takes to engineer them has resulted in powerful demand to reduce lead times. Molds made from the Lenox materials can be produced in days, versus months, using conventional mold fabrication techniques and materials. Not only will the reduced lead times benefit the end product manufacturer, but the profitability of the mold maker will be increased as well, he added.

The lower cost in the Lenox-based mold construction is due in large part to reduced labor requirement. The unique combination of high performance polymers with metals and fibers produce the high performance composite having operating temperature capability of more than 600 degrees F.

The extraordinary physical properties of these mold materials creates a nice fit with the existing Lenox lignin-based resins used for manufacturing the plastic end product. "We see our new mold material providing an excellent introduction for the Lenox lignin- based plastic materials. The synergy is terrific," Mr. Kurple said.

Molds for manufacturing are commonly called "tooling" in the industry, and the complete tooling of an automobile line costs hundreds of millions of dollars. The automotive industry, on average, is on a five-year cycle, with new tools being produced at least every five years per product line. The new Lenox products can help to reduce the time to retool by a significant margin. The tooling industry exceeds $5 billion annually in the United States alone.

Lenox Polymers Limited holds multiple patents on the production of high-performance polymers using lignin, a wood product. Lignin is the "glue" that binds the cellulosic fiber of wood together, and this is obtainable from black liquor, the waste product of wood pulp paper mills. With unique Lenox technology, lignin becomes a reactive polymeric material which can be molded in various processes as well as used as a binder in the foundry and wood products industries.

In other new product news, Mr. Kurple said a Lenox-based product was introduced by Prestone in 1995 as "Spray N' Go," a tire traction spray for use on icy roads. Several hundred thousand cans of "Spray N' Go," have been produced and are being sold in the United States and Canada.

Lenox Polymers Limited is a specialized resin products company which has a patented and proprietary, low-cost method to produce very high quality lignin from the waste black liquor of kraft-type pulp mills. Lignin is a natural glue derivative of wood that can replace certain petrochemicals used in plastics. The new lignin- based resins possess a number of environmental, economic and quality advantages for foundry, adhesive, coating, foam, and plastic applications.

Shares of Lenox trade on the Canadian Dealing Network (LENP) and OTC B.B. (LXPYF).

CONTACT: Lenox Polymers Limited

Ken Kurple, 810/ 364-3774

or

Hume, Kieran Inc.

Jon W. Kieran, 416/ 868-1079

or

Hume, Kieran Inc.

Cathy Hume, 416/ 868-1079