Royal Laser Corp.
TSX : RLC

Royal Laser Corp.
Canadian Hydrogen Energy Company Ltd.

May 11, 2006 17:08 ET

Royal Laser Corp.-Announces Intent to Partner with Canadian Hydrogen Energy Company Ltd. 'CHEC'

TORONTO, ONTARIO--(CCNMatthews - May 11, 2006) - Royal Laser Corp. ("Royal Laser")(TSX:RLC), and CHEC, are pleased to announce that they have signed a letter of intent ("Letter of Intent") to enter into exclusive manufacturing agreements to: i) manufacture CHEC's Hydrogen Fuel Injection ("HFI") System and, ii) develop new hydrogen fuel injection technology for the original equipment manufacturer ("OEM") market through Hydrogen Hybrid Technologies Inc. ("HHT"), a wholly owned subsidiary of CHEC. The HFI technology boasts Environmental Technology Verification ("ETV") certification, increasingly the international standard for environmental claims, administered in Canada by Environment Canada. The HFI technology uses electricity to split water to generate hydrogen and oxygen and then injects those gases into the fuel-air mixture of any internal combustion engine. The result is a more efficient combustion of diesel, gasoline, biofuel or other fossil fuels; thereby dramatically reducing fuel consumption exhaust emissions, oil degradation and engine wear while increasing horsepower and torque. Installed on over 150 fleets, trucks, buses, ambulances and light trucks, as well as on diesel generators, the products have 60 million miles of testing and applied use.

In addition, the Letter of Intent contemplates Royal Laser subscribing for shares in the capital of CHEC and acquiring shares in the capital of HHT from CHEC and in exchange, CHEC will subscribe for shares in the capital of Royal Laser. The terms and conditions are to be finalized upon completion of due diligence of the parties, regulatory approval, judicial approval if required and completion of definitive agreements (the "Transaction"). The closing of the Transaction is expected to be completed on or before May 31, 2006.

"Today, the OEM's are globally producing over 54 million new vehicles per year. Achieving a small percentage of the total market share could translate into over $1 billion in annual sales. As another milestone in our original distribution structure, we are extremely pleased to have the opportunity to partner with a growth-oriented entrepreneurial company such as Royal Laser, a company that is known for their quality of production", said Ira M. Lyons, President of CHEC. "The HFI technology represents bridge to the hydrogen economy which we all hope will eventually materialize and can play a major role in helping the OEM's and trucking companies meet the tough new 2007 and 2010 emissions standards", Lyons added.

Currently, CHEC is one of the leading companies in the hydrogen-injection market and is actively manufacturing and distributing in the heavy goods, bus, emergency vehicle and other markets and has over 120 certified installation centres - one of the largest retail distribution networks for any hydrogen product in the world - operating across North America.

"This Transaction is another example of our commitment to innovation and leadership in product development and manufacturing, particularly in the newly emerging area of emission reduction technologies", said William Iannaci, Chief Executive Officer of Royal Laser, a company with facilities that have ISO 9001:2000 and ISO/TS 16949:2002 certifications. "The CHEC HFI technology not only represents a solution to the challenge of particulate and greenhouse gas reductions, but it is an automotive technology that provides an extremely fast payback period to the end user by providing them with significant fuel and maintenance savings. In line with our recent Envyrozone acquisition, the CHEC Transaction demonstrates our continued commitment to environmental solutions, and we look forward to contributing to the next generation of hydrogen-hybrid cars." said Iannaci.

Royal Laser Corp., through its wholly owned operating subsidiaries, manufactures custom wood and metal products targeted at the retail in-store development industry, as well as being a custom flat rolled steel service centre targeted at the automotive and the OEM industrial products, construction industries and retail in-store development industry, in Canada, the United States and increasingly, overseas. Further information can be found at www.royallaser.com as well as www.sedar.com.

About Canadian Hydrogen Energy Company: CHEC's HFI is one of the world's most advanced on-board hydrogen generating system. The system offers unparalleled benefits for virtually any internal combustion engine, with increased horsepower, decreased emissions and a minimum 10% improvement in fuel economy guaranteed. Further information on the company and its innovative products can be found at www.chechfi.com.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to Royal Laser. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include risks and factors as are detailed from time to time in the Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressed qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Royal Laser Corp.
    Bill Iannaci
    Chief Executive Officer
    (416) 679-9474
    billi@royallaser.com
    or
    Canadian Hydrogen Energy Company Limited
    Ira M. Lyons
    President
    (800) 550-4066 or (905) 697-7011
    ilyons@chechfi.com