ACE/Security Laminates Corporation

ACE/Security Laminates Corporation

September 21, 2005 16:47 ET

ACE Engages Demers Beaulne as Successor Auditor; Halt Trade Remains In Effect

OTTAWA, ONTARIO--(CCNMatthews - Sept. 21, 2005) - Ace/Security Laminates Corporation™ (TSX VENTURE:ASL) is pleased to announce that its Board of Directors, acting on the recommendation of its Audit Committee, has appointed Demers Beaulne as the company's successor auditor. The company's former auditor, Raymond Chabot Grant Thornton LLP, resigned in May of this year. The audit committee of the Board of Directors has full confidence in Demers Beaulne and is looking forward to moving ACE's business forward with the assistance of the new auditors.

The company's stock was halted by the TSX Venture Exchange on September 2, 2005. As previously described in press releases dated June 14, 2005 and August 16, 2005, ACE had given an undertaking to the TSX Venture Exchange that external auditors would be in place by August 31, 2005. As ACE was still in the final stages of engaging Demers Beaulne at that time, the TSX Venture Exchange imposed a halt on trading.

Further to the ACE's press release of June 14, 2005, Deloitte and Touche LLP has completed their special engagement of ACE's transactions with its major supplier. The Company will dislcose the findings of this report in a separate press release, which will be issued in the near future.

Concurrent with the TSX Venture Exchange review of the financial affairs of ACE, the interim Chief Financial Officer of ACE along with the company's new accounting staff are in the process of reviewing the books and records of ACE. As previously disclosed in a press release dated August 31, 2005, the interim Chief Financial Officer has found that (i) proper internal controls have been inadequate; (ii) accounting and bookkeeping has been inadequate and led to errors and inaccuracies; and (iii) analysis, documentation and support for transactions has been weak. Further, the Company's accounting software is out of date and is in the process of being replaced. Once the interim Chief Financial Officer completes the review of the company's financial affairs, ACE will determine whether any historical financial statements need be restated and will make the appropriate disclosure to the TSX Venture Exchange and the market if a restatement is required.

In the meantime, ACE is responding to and is fully committed to resolving the concerns of the TSX Venture Exchange in order to ensure that there is full disclosure of the company's financial affairs with a view to moving towards an end to the halt trade. ACE has, throughout the period of the halt trade, continued its normal business activities and intends to continue to run its business in the normal course while the halt trade is in effect.

ACE/Security Laminates™ Corporation specializes in manufacturing and distributing, through a worldwide network of dealers, safety and security window laminating technology.

Since 1999, ACE has established a presence in 40 countries. ACE produces a micro thin polyester laminate that, when applied to glass, protects against baseball bats, crowbars, rocks, fire, Molotov cocktails, bombs, bullets and natural disasters.

The advantages of ACE's products are found in their protective capabilities, transparent finish, and simple application to existing windows. What makes ACE's security laminates the obvious choice when protecting people and property is the extensive third party testing they have undergone against threat levels ranging from break and entry to bullets and bombs; demonstrating the product's high-end performance.

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

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