(Montreal, Quebec) - Raymor Industries is proud to announce that its wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings Inc. (AP&C) has received a contract from Turbomeca, a SNECMA Group aerospace company, to provide metallic coating services for helicopter turbine engine components. AP&C won the contract after having undergone an approval process for its anti-wear metallic coating production unit and its quality management system. As a result, AP&C becomes an approved supplier for Turbomeca, a division of the large aerospace company, SNECMA Group.

“This contract with Turbomeca is very important, because it represents for our company a source of recurring revenue for products & services of high added value and a breakthrough in the aeronautical sector,” highlights Mr. Stéphane Robert, President of Raymor Industries.

With its current client base, its anticipated accreditations from targeted companies, and its current production capacity for one shift, AP&C targets generating revenues of up to CDN$4 million over the next twelve months from its Metal & Ceramic Coatings Division. This capacity may increase with the addition of more shifts, without additional investment in equipment. This division has highly-specialized equipment for the operation of processes, such as HVOF (High
Velocity Oxyfuel), APS (Atmospheric Plasma Spray), VPS (Vacuum Plasma Spray), the analytical labs, and a highly-skilled workforce for the production and development of new nano and conventional coatings. The goal of AP&C is to become a leader in metal and ceramic coatings in sectors such as aerospace, mining, power turbines, and other industries with specialized equipment.

“AP&C’s expertise in thermal spray coatings is very appealing for the Canadian Aerospace sector. AP&C is currently attracting the attention of many industrial leaders both in Quebec and abroad, in this area; and I believe that AP&C’s technology represents a significant competitive advantage for Quebec,” adds Mr. Michel Baril, well-known in the aerospace sector and a member of Raymor Industries Board of Directors

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Analysts from the renowned Freedonia Group evaluated the anti-wear coatings market to be US$1.52 billion in 1999 and US$1.68 billion in 2004. They anticipate a steady annual growth rate of 6.3% for this market, which should lead to sales of more that US$2.27 billion in 2009.

“As well, the current trend towards raw material cost reductions will make thermal spray coatings more and more affordable, allowing this type product to penetrate existing, untapped markets, such as industrial equipment and heavy machinery. This is why we anticipate a strong growth in demand for AP&C products,” concludes Mr. Robert.

RAYMOR INDUSTRIES INC. (TSX-V:RAR) has for mission to be the largest Canadian developer of high technology and a producer/recycler of advanced materials and nanomaterials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) metal and ceramic coatings, which largely targets aerospace, military, and mining applications; (2) spherical metallic powders, primarily used for biomedical and aerospace applications; (3) nanotechnology products, including nano-powders, nano-coatings, and carbon nanotubes for “the applications of tomorrow”; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to 20 patents throughout the world.

FOR MORE INFORMATION, PLEASE CONTACT:
Raymond Fournel – Investor Relations
Tel: 514-932-3485 (NEW)
Fax: 514-932-3644 (NEW)
E-mail: investor@raymor.com
www.raymor.com

FOR MORE INFORMATION ON NANOTECHNOLOGY AND ITS POTENTIAL, PLEASE VISIT THE FOLLOWING SITE: www.nanoquebec.ca