SOURCE: Coattec Industries, Inc.

August 15, 2005 09:30 ET

Coattec Announces Receipt of Favorable Market Study in Support of Their Future Strategy to Enter the US Market

MAINZ, GERMANY -- (MARKET WIRE) -- August 15, 2005 -- Coattec Industries, Inc. ("Coattec") (OTC: CTCK) announced today that is has received during the first week of August the roofing market study for the USA, which will be completed in September 2005 with the most current market data from the National Roofing Contractors Association (NRCA). The market study shows enough interesting aspects to lead the Board of Coattec Industries to adopt a positive forward strategy concerning its roofing foils for the US market. The market segment important to Coattec is the market for single housing, steep slope roofs, mostly tiled roofs. Steep slope roofs are dominant in the residential markets and are increasing to 70%. The study shows, "While single housing might drop some 7% in the year 2005, the +1.4 Million units still represents a healthy level." It shows also, that new construction is only 30% of steep slope residential roofs, and re-roofing represents almost 60% of this market, of which more than 80% is done by tear-off/replacement.

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 saving in house building. This again leads to the increased usage of roofing foils with specific energy saving and insulation and breathing characteristics. This trend is confirmed by research figures produced by the NRCA.

Research reveals that a large portion of existing building stock built before 1980 has roof systems with little or no insulation as part of the full system. "90% of home owners say they use more insulation or energy saving methods when they replace or re-cover an existing roof system."

One of the most important factors which affects the satisfactory performance of a roof is wind gusting. "Wind tunnel tests and practical evidence have shown that the satisfactory performance of a roof, and a tiled roof in particular, depends on the complementary function of the roof covering and the underlay." Underlays, roofing foils, represent a very small percentage of the total costs of a roof system, therefore Coattec Industries management believes that a high-quality product correctly priced should have its place in the future roofing market in the USA. The market study concludes: "The American legislation and regulations are showing an increasing awareness regarding high-quality construction, especially in fields of insulations and energy savings. With the popular use of membranes regarding protection against wetness a first step is already done. High quality roofing underlay -- as well as house wrapping material -- is combining the above-mentioned effect with much higher degree of insulation and roof breathing quality. Coattec has a huge potential to serve these two markets..."

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Certain of the statements made in this Company information summary regarding its business constitutes forward-looking statements contemplated under the Private Securities Litigation Reform Act of 1995 and certain factors could cause actual results to differ materially from those projected. For a brief discussion of the risks and uncertainties that may effect our business and future operating results, please refer to the filings which are on file with the SEC and the subsequent filings to be filed with the Pink Sheets information service.

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