Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

August 21, 2006 09:54 ET

Polyair Inter Pack Inc. Announces Agreement on Sale of Above Ground Pool Business and Management Appointments

TORONTO, ONTARIO--(CCNMatthews - Aug. 21, 2006) - Polyair Inter Pack Inc. (TSE:PPK)(AMEX:PPK) announced today that its wholly owned subsidiary, Cantar Pool Products Limited ("Cantar") has entered into an agreement with Northern Lights Recreation Co. for the sale of its above ground pool business. Northern Lights Recreation is a company owned by Steven Cohen who has been in the pool business for 35 years. The agreement provides for the purchaser to acquire intellectual property, inventory, equipment and goodwill associated with the segment of Cantar's business comprising the manufacture, distribution and sale of above ground swimming pools. The assets being sold do not include those related to the manufacture of pool equipment and the accounts receivable. The sale is expected to be completed by September 5th, 2006 after satisfaction of all conditions outlined in the asset purchase agreement. The amount of proceeds will be determined pursuant to a physical verification of inventory, and net proceeds of the sale will be applied to pay down bank debt.

Polyair also announced the appointment of Victor D'Souza, as its interim CEO and of Michael Freel to the position of Director of Finance. The recent appointments and sale of the above ground pool business are part of the Company's announced strategy to exit from the pool business and to improve its overall profitability. In its packaging division, which after the sale of the pool business will be the Company's principal business, the Company is undertaking a reorganization of its operations with a view to reduce operating expenses and improve its working capital position.

Polyair Inter Pack Inc. (www.Polyair.com) in its Polyair Packaging division manufactures and distributes a wide range of protective packaging products. These products are sold to distributors and retailers across North America. The company operates nine manufacturing facilities, seven of which are in the US where it generates the majority of its sales.

Certain information included in this release contains statements that are forward looking. Such forward-looking information involves risks and uncertainties that could significantly affect anticipated results in the future. We caution that forward-looking statements should not be regarded as a representation by the company that the future plans, estimates, or expectations contemplated by us will in fact be achieved. Please refer to the company's reports filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) for a description of the business environment in which it operates and important factors that may materially affect its results. Polyair Inter Pack is not under any obligation, and expressly disclaims any such obligation, to update or alter its forward-looking statements.

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