IPL Inc.

IPL Inc.

October 26, 2006 09:00 ET

IPL's Expertise and Technology Transcend International Borders

One of India's Largest Corporations Identifies SmartCrate'TM' as the Best Reusable Container for Handling Food

SAINT-DAMIEN, QUEBEC--(CCNMatthews - Oct. 26, 2006) - IPL Inc.(TSX:IPI.A), one of North America's leading producers of plastic products, today announced the sale of technology and expertise for manufacturing its reusable SmartCrate™ containers to Reliance Industries Limited, one of India's most powerful industrial conglomerates. This commercial agreement also covers the sale of some moulds currently used to manufacture these containers, which are specially designed for the transportation and handling of perishable products.

Developed in partnership with Quebec's Ministere de l'Agriculture, des Pecheries et de l'Alimentation and Universite Laval, under the direction of Dr. Jean-Pierre Emond and his team, IPL introduced SmartCrate™ reusable collapsible crates to North American markets five years ago. Designed for a range of uses, such as handling fruits and vegetables, these high value-added crates have been a real hit with customers due to their avant-garde design, durability, affordability and great versatility.

Within the next two years, Reliance Industries intends to launch a chain of 1,500 retail grocery stores with sales projected to be approximately $25 billion a year. The in-depth analyses recently carried out by Reliance Industries to pinpoint the best system for supplying the future stores with fruits and vegetables convinced the corporation that SmartCrate™ was clearly the most efficient handling solution currently on the market worldwide and that there was no reason to invest in developing an alternative technology.

"Once again, IPL has set itself apart from the competition with its proven technological know-how and the indisputable quality of its innovative products," declared Serge Bragdon, IPL's President and CEO. "Today's announcement is doubly important as it makes IPL a true partner to Reliance Industries, supporting its development and long-term operational excellence not only in the field of plastics but also in retail trade. This business partnership will also help strengthen IPL's position in its current markets by accelerating the development of its technology and manufacturing methods while optimizing the quality of the products offered to North American customers. In other words, this business agreement is a win-win proposition for Reliance Industries as well as IPL, which intends to take full advantage of promising technical developments and the new, greater opportunities that are now opening up for all of its products."

About Reliance Industries

Founded in 1966, Reliance Industries Limited is a diversified company with operations in the textile, petrochemical, oil refining and plastics sectors. With annual earnings in the order of $20 billion and market capitalization of $41.5 billion, Reliance Industries is one of India's largest companies, accounting for 3.5% of the national GDP in the world's second most populous country after China.

About IPL

IPL Inc. is one of the leading North American producers of moulded plastic products through injection and extrusion for different industrial manufacturing sectors. IPL employs more than 1,000 people in its four plants located in Saint-Damien, Saint-Lazare and Lawrenceville (Quebec), and Edmundston (New Brunswick). The company manufactures and markets over 400 products for packaging and materials handling. IPL also provides highly technical value-added custom moulding services for the automotive and transport industries, as well as for various industrial uses. Further information about IPL is available at www.ipl-plastics.com.

Forward-looking statements

Except for historical information provided herein, this press release may contain statements of a forward-looking nature concerning the future performance of the Company. These statements are based on management's best possible evaluation of future events, and as such involve a number of risks and uncertainties. The factors apt to cause variances in the results include, among others, fluctuations in quarterly results, change in demand for the Company's products and services, the impact of competition on prices and the market in general, and any economic changes. As a result, readers are advised that actual results may differ from expected results.

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