Kafus Enters into Moulding Alliance with FibreForm
TORONTO, July 12, 2000 - The CanFibre Group Ltd. (CDN: CFGL.), a subsidiary of Kafus Industries Ltd. (AMEX:), is pleased to announce it has entered into an alliance with FibreForm LLC of Los Angeles, California to produce and sell a line of primed mouldings under the ALLGREEN(TM) brand name across North America. The mouldings, which have already commenced shipment, will be produced by FibreForm for CanFibre and is expected to consume approximately 25% of CanFibre's current production capacity. Additionally this alliance will allow CanFibre to realize significantly improved margins on its medium density fiberboard (MDF) product and provide customers a higher value product at competitive prices.
CanFibre has also secured agreements with, and commenced shipments to, various wholesale distributors which will the Company a broader geographic coverage and better enhance its MDF distribution capabilities across North America. The largest of these distributors includes: Goodfellow, Inc. which has 17 facilities across the mid-western U.S. and throughout Canada; Hardwoods Inc. with 23 facilities located in the western and mid-western states; and a broad distribution network across southern California and Arizona including Weber Plywood & Lumber Co., Royal Plywood LLC, National Wood Products, Inc., Progressive Hardwoods Company, California Panel & Veneer Company and Philips Plywood Co. Under these agreements, each of these distributors will purchase and stock in their warehouses a wide range of CanFibre's MDF products which will provide individual purchasers more immediate access to ALLGREEN(TM) products on a broader regional basis. These distribution programs are expected to utilize approximately 60% of CanFibre's current MDF production.
CanFibre also continues to make shipments of its MDF to a growing number of Home Depot outlets as part of its direct retail sales efforts. Chris Carl, President of CanFibre stated: "The success of these programs clearly demonstrates the value our customers place on high quality, competitively priced products, and our superior environmental features. By transitioning away from a commodity approach to sales and focusing more towards value-added strategies, CanFibre has created a 'win-win' condition for its customers and its shareholders."
The foregoing contains forward-looking statements, which are subject to contingencies and uncertainties. Such forward looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could prove to be inaccurate including without limitation, the assumption that Kafus will be able to raise the necessary financing to develop its projects and that there is market acceptance for its products. Actual events, transactions, and results may differ materially from anticipated events, transactions or results described in such statements. Material uncertainties about the future of the company exist. Kafus is subject to a number of risks and uncertainties which are set forth in its filings, with the Securities Exchange Commission.
CONTACT: The CanFibre Group Ltd.
Chris Carl, President, 416/681-9990
416/681-9992 (FAX)
Website: www.canfibre.com
or
Kafus Industries Ltd.
Tony Francel, 941/698-8920 or Toll Free:1-888-333-5377
781/326-5105 (FAX)
Website: www.kafus.com