SOURCE: Thresher Industries, Inc.

December 15, 2006 16:05 ET

Thresher Industries Completes Acquisition of Talon Composites

HANFORD, CA -- (MARKET WIRE) -- December 15, 2006 -- Thresher Industries (PINKSHEETS: THRI), a Hanford, California-based manufacturer of quality aluminum and composite castings, announced today that it has completed its acquisition of Talon Composites, a manufacturer of premium metal matrix composites. Roger Rowell, CFO Thresher Industries, worked with R.J. Easton to orchestrate and conclude the acquisition. Details on terms were not disclosed.

Tom Flessner, President and CEO of Thresher Industries, said, "We are pleased to announce the completion of our acquisition of Talon Composites, our transition team is now working with Talon to expedite relocation of Talon's manufacturing to Hanford. I look forward to working with Robin Carden and his team in relocating and resuming production in Hanford. The transition team is working to complete the installation of all Talon manufacturing equipment in the new 13 acre, 110,000 square foot facility recently renovated for this purpose. We will complete the transfer of equipment for Talon by year end."

Robin Carden, President and CEO of Talon Composites, said, "Our new metal matrix material enables us to realize clear advantages over conventional aluminum alloys, including excellent thermal conductivity, stiffness and ease of machining. Thresher's advanced processing equipment will allow us to reach out to many new markets. The Talon team looks forward to working alongside Tom Flessner and Thresher Industries team in the coming years."

Thresher's acquisition of Talon allows it to leverage its manufacturing strength to develop and market Talon's products in the high growth nuclear market and other target industries. To date Talon Composites has focused on providing superior neutron absorbing materials and manufactured components for nuclear transport and storage containers. We believe that no competitive product can match the superior properties of Talbor® which include superior neutron shielding capability, weight benefits, high thermal conductivity and other attributes. Talon has fulfilled orders from NAC and BNFL. The metal matrix, Talbor, has been used in Casks for Neutron attenuation in China, and is in the process of finishing the 3 order with BNFL for fuel shipment across Europe. The Pacific Rim customers are actively engaged in designing Talbor into containment structures for casks. The results generated demonstrate that there is rapidly growing worldwide interest in the use of Talon's materials in the nuclear industry.

It is anticipated that there is an estimated worldwide market of $500-800 million for Talbor products in the nuclear industry alone. The superior properties of Talon's materials have also proved valuable in many other applications where a combination of light weight, stiffness, longevity and strength are important -- e.g., engines, electronics, defense and aerospace. This market is expected to expand dramatically over the next few years as the nuclear industry continues to grow, wet storage facilities become full, and aluminum-based shielding materials are used in more storage and transportation structures. Thresher also believes that there is significant potential for Talon's products to expand into additional markets: electronics, automotive, sports, defense/aerospace and others. Talon's premiere product is Talbor, a patented composite principally made of boron carbide and aluminum. Talbor's composition and method of manufacture gives it high resistance to wear, great stiffness, light weight, and high strength. Talbor's density is 60% that of titanium with a specific stiffness 60% higher. Likewise, Talbor's density is roughly one-third that of steel with a specific stiffness 30% higher. Talbor exhibits surface hardness higher than titanium and comparable to many steel alloys.

Talon's facility in Hanford, California will be adjacent to Thresher Industries current headquarters and its manufacturing group. Thresher Industries now has approximately 110,000 square feet of office and manufacturing space at its 13 acre Hanford headquarters.

Thresher's Rowell stated, "Thresher Industries Foundry Group will continue to provide quality specialized aluminium castings to its growing customer base while providing new materials to our customers using our advanced manufacturing technologies to increase sales and profits for Thresher."

Safe Harbor Statement

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.

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