PolyCarbon Industries, Inc.
to Acquire Borregaard Synthesis, Inc.

DEVENS, Mass., Aug. 23 /PRNewswire/ -- Edward Price, President and co-founder of PolyCarbon Industries, Inc. (PCI) announces that PCI has signed an agreement to acquire the assets of Borregaard Synthesis, Inc. (BSI) located in Newburyport, MA. This transaction, which is expected to be completed by the end of August, will allow PCI to continue to meet customer commitments affected by the loss of its Leominster, MA manufacturing plant in March 2005, and further accelerate its growth strategy by expanding its pipeline of products. PCI, founded in 1996, is a privately held company that manufactures active pharmaceutical ingredients (API's) and custom chemicals for specialty pharmaceutical companies and other related industries. BSI is a member of the Borregaard Group which manufacturers wood based specialty chemicals in addition to fine chemical products for the medical/photo-imaging, pharmaceutical and food manufacturing/aroma markets. The combined company will be named PCI Synthesis, Inc. and will have more than 50 employees and will operate two sites in Devens, MA and Newburyport, MA. The company plans to relocate its headquarters to Newburyport while the Devens facility will concentrate on Research and Development activities. "We are excited to merge the two companies and leverage each other's capabilities to establish a leading provider of products and services to the industries that each company currently serves," says Mr. Price. "We have a history of working with the companies in business at the Newburyport site and are confident that we will be able to exceed our customers' expectations going forward. The Newburyport site has the significant additional capacity we will need to meet the demands of our current product pipeline that will mature over the next couple of years."

SOURCE: PolyCarbon Industries, Inc.