JOINT VENTURE TO PRODUCE RECYCLED RAILROAD TIES TO REPLACE CREOSOTE TREATED WOOD PRODUCTS FORMED BY TWO PENNSYLVANIA FIRMS.

September 3, 2004- Philadelphia

Global Rubber Inc, one of North America's largest recycled rubber processor, and Effektive Design, a new product development company, announced plans today to manufacture composite railroad ties at Global Rubber's Reading, PA plant. The joint venture incorporates the use of patented technology in the manufacture of structural composite materials such as railroad and landscape ties. The proposed railroad ties will be used to replace creosote treated wooden railroad ties, which environmental agencies have targeted because of adverse effects of chemicals leeching from the ties reaching groundwater.

Global Rubber plans to utilize patented technology developed by Effektive Design, based in Lafayette Hill, PA. " The railroad tie market is huge and is in need of a high-quality, reasonably priced composite railroad tie," said Michael Hovsepian, CEO of Global Rubber Inc. As the railroad industry scrambles for replacements for railroad ties, no clear winner has emerged. "Effektive Design's composite reinforcement system is unique in the industry and should eliminate the problems encountered by similar composite replacements on the market today," added Hovsepian.

The patented technology, under development for nearly nine years, utilizes structural reinforcements in combination with composite materials, similar to reinforced concrete. "We are excited about partnering with such a credible and reliable manufacturer such as Global Rubber," said Charles Nygard, CEO of Effektive Design. Nygard added, " Global Rubber has proven to be a market leader and their extensive knowledge of this market was instrumental in choosing them to manufacture our product. As we work to develop even more applications for recycled rubber products, Global's extensive recycling and manufacturing experience will be crucial to our further success in recycled rubber industry."

Production of the new railroad ties is expected to begin sometime around the first quarter of 2005. Over 16 million railroad ties were replaced in 2002, representing nearly $5 billion in replacement railroad ties.