Pan Terra Industries Inc.
TSX VENTURE : PNT

Pan Terra Industries Inc.

July 05, 2005 09:00 ET

Pan Terra Awarded Trenchless Technology Project

CALGARY, ALBERTA--(CCNMatthews - July 5, 2005) - Pan Terra Industries Inc. (TSX VENTURE:PNT) is pleased to announce that its Bluebird Division in Calgary has been awarded a trenchless pipe-bursting project worth approximately $1 million (Canadian Funds).

This project is to increase the size of a one-kilometer sanitary sewer from 375 mm (15") diameter pipe to 600 mm (24") using pipe-bursting technology under the Cochrane Golf Course for the Town of Cochrane. A trenchless solution has been selected because of economic benefit, and the need to minimize rehabilitation and disruption to the golf course, Town of Cochrane and private property.

This project and others are a further confirmation that Pan Terra's growth in trenchless technology markets further positions the company as a leading full service installer in western Canada for underground trenchless technologies including digital video, cleaning, cure-in-place liner, pipe bursting, slip lining technologies and open cut methods. This project will commence in September 2005 and will be completed this year.

Trenchless Technology Strategy

In addition to this project, Pan Terra is continuing its growth in trenchless technologies following a strategy of offering integrated solutions involving the design, engineering, manufacturing and installation of Cure In Place Pipe (CIPP) liners. This is consistent with the Company's previously announced proposed acquisition of Pacific Multilining Inc. (PMI) on March 15, 2005. The Company announces that it proposes to purchase installers across North America to build a network of CIPP rehabilitation service providers, capable of offering integrated solutions including pipe bursting and CIPP.

Pan Terra is a founding member of the North American Society of Trenchless Technology (NASTT), Northwest Chapter, Calgary Section with partners the City of Calgary, Associated Engineering, the University of Calgary and Thuro Inc. As a founding member, Pan Terra will be a sponsor of the Alberta NASTT Trenchless Technology Conference in Calgary on November 16, 2005, and will co-author and submit a paper discussing an innovative pipe bursting project utilizing an exterior slip lining and auguring method for CP Rail in Medicine Hat.

Infrastructure

Pan Terra is also pleased to announce the purchase and implementation of the world's leading suite of construction industry software from HCSS and Quest for: digital estimating, field data collection, real time project costing and management reporting. The software enables the automation of several of the Company's business processes and places highly effective tools directly in the hands of its estimators, projects managers, site superintendents and executive team. The growth of the Company has precipitated the need for scalable decision support technology that enhances execution performance at job sites and management reporting. The Company recognizes that the information systems required to run a $25 million business are dramatically different than for a $10 million owner-operator business. The new technology is currently being used for estimating and managing projects of significant size and complexity. The new software and business processes are having a positive impact on the accuracy and speed at which project pricing proposals are prepared. The Company is now benefiting from the new software and expects to leverage the software by providing a world-class management information platform for acquired companies. Pan Terra's technology platform will facilitate the seamless integration of acquisitions and provides greater sophistication of the total package offered to clients. The requirements for the new software are driven largely by the rapid growth of the Company and the need for real time project costing information and performance measurements.

Pan Terra continues to integrate technological solutions for excavation, demolition and site preparation, with focus on providing one stop solutions for customers. As the acquisition strategy of the company is developed, the company will offer environment and society friendly answers for municipalities and contractors in growing markets in Alberta and western Canada.

Sale of Non-Strategic Assets

Pan Terra announces that it has executed a binding Letter of Intent with a third party regarding the sale of Pan Terra's Atlee Buffalo Salt Water disposal well for a cash consideration of $500,000 subject to due diligence, and entering into a definitive purchase and sale agreement, with an anticipated closing date of August 15, 2005.

For additional information on Pan Terra and its growth strategy, please visit an Internet broadcast with Don Sandford, CEO at Corporate Update at the following URL: http://www.mercurymedia.ca/audio/updates/player.html.

About Pan Terra

Pan Terra is an innovative construction solutions contractor that develops new sites and redevelops existing sites to the point where an owner, developer, or general contractor can proceed with building construction. The focus of the Company is site preparation and underground utility installations and rehabilitation. The Company offers packaged services in industrial, commercial, retail and residential markets. Pan Terra's major clients include leading General Contractors, Owners and Developers. The Company has extensive relationships with architects, engineers, and consultants. Pan Terra's growth plan includes: acquisition of successful companies, leveraging of environmental and trenchless technology solutions and total dedication to exceptional operational performance and achievement.


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