Ameriplas Holdings Ltd.

Ameriplas Holdings Ltd.

January 12, 2007 10:45 ET

Ameriplas Increases Production Capacity

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 12, 2007) - Ameriplas Holdings Ltd. (TSX VENTURE:AHL) is increasing its preform production capacity by the purchase a new injection moulding machine with the capacity to produce up to 200 million preforms per year. This additional capacity will allow Ameriplas to take on additional customers which have been asking to purchase preforms from Ameriplas. This increase represents a capacity increase of approximately 30%.

In 2005, Ameriplas completed the construction of its new preform production facility in St. Jean-sur-Richelieu, Quebec. In 2006, Ameriplas added one new production machine to the factory which was dedicated to one new client. In 2006, Ameriplas also focussed on achieving profitability and paying down debt. The addition of this new machine, in early 2007, will allow Ameriplas to improve its cash flow and profitability further, and continue to reduce its debt.

Clement Lussier, President of the Company, commented: "Our customers are growing and they need more preforms. In order to keep up with the customers' demands in the peak season, we need to expand our production volume and this new machine will allow us to accomplish that."

The purchase of this new injection moulding machine will be financed from a loan of $525,000 and working capital. The loan is secured by the equipment and a personal guarantees by two administrators. The loan term is five years and the interest rate is 15%.

In addition, the Board of Directors has approved the conversion of $55,999 in amounts due to two directors into common shares of the Company at the average trading price of the last two weeks in December 2006 of $0.075 per share. These common shares will be subject to a four-month hold period. The conversion of these long outstanding amounts will help to reduce the Company's debts further and is subject to the approval of the TSX Venture Exchange.


Ameriplas has been in the business of manufacturing plastic preforms for the Canadian and U.S. water and soft drinks bottling industry since December 1999. Preforms are sold to beverage companies that heat and blow them into the form of bottles used for their beverages. PET preforms are used industry wide in the production of plastic beverage containers to avoid the costs and difficulties of shipping bulky plastic bottles. A primary use of these bottles is for bottled water, which is the fastest growing segment of the beverage industry. Other uses include soft drinks, sports drinks and beer.

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

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