MAGNIFOAM TECHNOLOGY INTERNATIONAL INC.

MAGNIFOAM TECHNOLOGY INTERNATIONAL INC.

March 21, 2005 18:17 ET

MTI Announces Private Placement of Common Shares With Dundee Securities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MAGNIFOAM TECHNOLOGY INTERNATIONAL INC.

TSX SYMBOL: MTI

MARCH 21, 2005 - 18:17 ET

MTI Announces Private Placement of Common Shares With
Dundee Securities

MISSISSAUGA, ONTARIO--(CCNMatthews - March 21, 2005) - Not for
distribution to U.S. news wire services or dissemination in the United
States

Magnifoam Technology International Inc. (MTI) (TSX:MTI) today announced
that it has entered into an agreement with Dundee Securities Corporation
in connection with an underwritten private placement offering of
4,260,000 common shares at a price of $2.35 per share, for aggregate
gross proceeds to Magnifoam of approximately $10.0 million. The
agreement also includes an over-allotment option under which Dundee
retains the option to purchase up to an additional 1,400,000 common
shares, within thirty days of closing, at the offering price of $2.35
per share.

Magnifoam intends to use the net proceeds of the offering to augment
working capital and for general corporate purposes.

The financing is scheduled to close on or about April 7, 2005 and is
subject to certain conditions including, but not limited to, the receipt
of all necessary approvals including the approval of the Toronto Stock
Exchange.

In connection with the recently completed acquisition of the assets of
the Groendyk Division of RBX Industries, Magnifoam also intends to apply
to applicable securities regulatory authorities for an exemption from
the requirement to have filed a business acquisition report with the
necessary audited financial statements relating to Groendyk. As a
result, Magnifoam was noted in default of certain disclosure obligations
under applicable securities laws. While Magnifoam believes that there is
considerable merit to its application, there can be no assurance that it
will be successful in securing the requested relief.

The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an exemption from the
registration requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there be
any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.

About the Company

Magnifoam Technology International Inc. (MTI) designs, develops and
manufactures custom-engineered products using silicone and other
cellular materials. The Company has three main product lines: Silicone,
Aerospace and Fabricated Products. MTI's manufacturing divisions develop
and produce silicone foam using patented technology, and design and
fabricate energy management systems from a variety of flexible, cellular
materials. Through its fully-owned subsidiary Leewood Elastomer GmbH,
MTI produces and distributes specialty silicone elastomer products. MTI
sells its products primarily in the aerospace and mass transit markets.
Secondary product categories include sporting goods, automotive,
industrial, medical and electronics markets. MTI's head office and
Canadian manufacturing operations are located in Mississauga, Ontario,
with international manufacturing operations located in Richmond,
Virginia, Buchanan, Virginia and Bremen, Germany. The Company also has
sales operations in England and Sweden, and an engineering support
centre in Brazil.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Magnifoam Technology International
    Bill Neill
    President and Chief Executive Officer
    (905) 564-9700
    or
    Fleishman-Hillard Canada
    David Ward
    Investor Relations
    (416) 214-0701