RS Composite Poles Tackling Tough Scandinavian Climate

RStandard(R) Poles Gain Market Acceptance Through Exclusive Melbye Distributorship

CALGARY , Nov. 23 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX), a technology innovator and manufacturer of advanced composite products for infrastructure markets, announces it has secured an exclusive distributor agreement with Melbye Scandinavia to sell RStandard(R) composite poles in Scandinavia. Melbye is already actively marketing RStandard poles and has found eager acceptance from both Skagerak Energi AS and Stattnet, Norway's national grid owner and operator.

Through Melbye's marketing efforts, RStandard composite poles were used for part of a 132kV insulated line in Norway recently installed by Skagerak Energi AS. The project contained nine RStandard poles divided into three H-frames and three single poles forming part of line that is being upgraded from 66kV to 132kV. Because of RStandard's modular design, Skagerak was able to increase the height of the poles to allow longer spans, an impossibility with wooden poles. This installation option allowed Skagerak to build this section with only six pole installation sites instead of the previous nine, and allowed the poles to be installed along the borders of a farmer's fields, rather than in the middle of them, which satisfied the farmer.

Skagerak's department manager for transmission lines, Geir Otto Pettersen , stated, "Skagerak Energi has about 1200km of lines at 132kV. Most of the poles were installed in the 1960's and are in poor shape, weakened by rot, termites and woodpeckers. Skagerak Energi has reinvested in the network to replace the old wood poles. This reinvestment will continue for several years to come. Up to now, Skagerak Nett has used steel towers to replace the old wood poles. For this reason, it was very interesting to us that RStandard poles were available as an alternative to steel. We decided very quickly that we wanted to gain experience with this product. In co-operation with Melbye Scandinavia, we decided to replace some wood poles suffering from wood rot with RStandard composite poles. To quickly gain experience, we decided to use grey and brown RStandard poles in both H-frame and single pole configurations in both soil and rock.

From our experience so far, we have determined that this is a product that Skagerak Energi will consider as an alternative to steel for future installations. With RStandard poles, we get the ease of installing a wood pole, but the durability and strength of steel. These poles set easily and quickly with soil as the only foundation. For Skagerak, the RStandard pole's light weight is of great importance since we can use our standard tools and machinery. Their modular design allows for compact transport and surprisingly easy installation and makes them excellent emergency stock since the modules can be mixed and matched to suit a particular pole requirement. Skagerak Nett is considering the total ownership cost in products that will be used in our network. The RStandard poles look very promising in this respect and we are looking forward to further co-operation."

In addition to the Skagerak project, Norway's main transmission operator, Statnett SF, is planning to deploy RStandard poles as part of a new 132kV line along Norway's northern mountainous border with Russia .

Statnett's project manager for the new line, Tore Jakobsen, stated, "We are very much looking forward to installing and evaluating the performance of a few RStandard poles to start with in a new 132kV line in Northern Norway along the Russian border. The line runs through extremely rugged mountainous terrain that is prone to high winds and icy conditions in addition to temperatures that can creep below minus 50 degrees Celsius. The poles' light weight means, among other advantages, that smaller helicopters can be used for the installation rather than the larger helicopters needed for installing ordinary creosote-soaked wooden poles. This, by itself, represents a considerable savings for us. In addition, much lighter equipment is needed for tower erection which again saves a lot in terms of environmental damage and terrain repair costs."

Both installations are examples of how utilities are looking to RStandard to reduce total ownership costs of their pole infrastructure while also improving the robustness of their grids. RStandard composite poles free utilities from the vigorous and expensive maintenance required for wood poles, especially in harsh climates.

Melbye Scandinavia chief executive officer, Christian Aasheim, stated, "We are constantly looking for new value-add products for our current and future customers that also offer environmentally friendly solutions. RStandard composite poles are an excellent example of our sales strategy. With our first project delivery to Skagerak Energi, we have gained valuable experience that has enhanced our practical understanding of some of the challenging installation scenarios we are faced with in Scandinavia, thus providing us with important knowledge for future projects. With the high level of interest we are experiencing in the market for these poles, we believe the future will bring many opportunities for Melbye Scandinavia and RS".

Paul Giannelia, president and chief executive officer of RS, pointed out, "The rugged terrain of Norway , Sweden and Finland present definite challenges for the installation of transmission and distribution lines. The superior strength and light weight of our poles gives our customers options for installation never before available. We are quite pleased they recognize the multi-leveled value proposition of using our strong, task flexible, maintenance-free poles."

About Melbye

Melbye Scandinavia is a technical marketing and sales organization which provides infrastructure network solutions to the energy and telecom markets. The head office is situated in Oslo , Norway , but the group has a total of 10 direct sales offices in Norway , Sweden and Denmark . Annual turnover is around MUS$ 56 and the company has 70 employees. For more information, visit www.melbye.no/english/aboutus.

About Skagerak Energi AS

Skagerak Energi, the parent of Skagerak Nett, became one of Norway's biggest power suppliers at the turn of the 21st century. With approximately 825 employees and an annual production of 5,400GWh, Skagerak Nett is one of Norway's biggest power suppliers and serves about 175,000 customers. For more information, visit http://www.skagerakenergi.no/.

About Statnett

Statnett is Norway's national main grid owner and operator. Statnett is responsible for all high voltage electricity transmission and distribution in Norway . Statnett is the transmission system operator of the Norwegian electricity power system. The Norwegian electricity grid is split into three levels: main grid (300 and 420kV), regional grid (66 and 132kV) and distribution grid (12 and 24kV). For more information, visit www.statnett.no/en/.

About RS

RS is an ISO 9001:2008 certified technology innovator that develops advanced composite material products for infrastructure markets. The composite products manufactured using the Company's proprietary resins and processes are typically lighter, more durable and longer-lasting than competing products made from the traditional building blocks of wood, steel or concrete. RS's flagship product is its award-winning RStandard(R) composite pole. The pole is used as transmission and distribution poles to carry electric grids and as communication structures for various uses including wireless networks and microwave communications systems. For the latest on RS's developments and case studies, go to the company's website at www.grouprsi.com.

"RStandard" is a registered trademark of RS

For further information: Laurien Abel, Investor Relations and Communications, Tel: [phone], Fax: [phone], Email: [email protected]