SOURCE: Protec Industries Inc.

December 12, 2008 17:36 ET

Protec Industries Inc. Announces Failure of Financing Arrangements and Resignation of President

VANCOUVER, BC--(Marketwire - December 12, 2008) - Mr. Arne Przybilla, President, Protec Industries Inc. (PINKSHEETS: PTCS) ("Protec" or the "Company"), regrets to announce that the proposed (August 26, 2008) financing for the Company's interests in certain Ukraine oil and gas projects has failed. Following the investors' defaults of the signed Joint-Venture financing agreements, Protec has determined that Mr. Serdar Ozpoyraz, President, Eurofund Capital Management Co. Ltd., and Mr. Ramiz Aliev, a member of the Azerbaiani Aliev family, are unable and/or unwilling to proceed with the agreed financing.

Individuals closest to all parties involved indicate that the current global economic crisis has had a serious negative impact for Mr. Ozpoyraz and Mr. Aliev. Also, there was a continuing concern about the Company's ability to meet its own ongoing obligations.

Mr. Arne Przybilla states, "After this latest financing failure I consulted with an independent investment banking expert regarding the Company's inability to obtain financing for its project opportunities. Now it is very clear that Protec will not find investors willing to pay Protec's past and current obligations, including my salary for the past several years, plus finance any of Protec's existing project obligations, all of which are in default. Therefore, after filing my claim for unpaid salary and expenses, I am immediately submitting my resignation."

Unfortunately, due to the Company's failure to obtain equity or debt financing for all previously-announced projects in Ukraine, Texas, Poland, Slovakia, etc., Protec has defaulted on all agreements. Thus, the Company has no rights to, or ownership of, any of these projects or assets.

Finally, the Company notes the death of its only other director, Mr. Edgar Luber, after his brave battle with cancer.

Protec Industries Inc. is a USA company listed on the Pink Sheets under the symbol "PTCS." As a result of the actions announced herein the Company which has no secured creditors shall be inactive.

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.

On behalf of the Board of Directors, resigned.

Arne Przybilla
President, resigned

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