(PI) Joint Release -- Royal Group and Premdor Form Strategic Alliance.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 20, 1999

(TSE:RYG.) (NYSE:RYG) (NYSE:PI) (TSE:PDI.)

Royal Group Technologies Limited (RYG: TSE, NYSE) and Premdor Inc. (PDI: TSE, PI: NYSE) announced today that they have entered into an agreement in principle to form a long-term Strategic Alliance involving the manufacture and distribution of doors and door-related components, including door frames, door lite frames, side lite frames and doors made from composite materials. Under the terms of the Alliance agreement, the two companies will work together to introduce technologically advanced, composite residential and architectural door products to global markets. The initial focus of the Alliance will be the North American residential steel entry door market.

The Alliance will utilize Royal's patented Ecoproducts recycling. technology, which permits use of a broad range of low cost, polymer based materials to manufacture affordable, durable and maintenance-free products. Royal will manufacture composite door products in its industrial complex located in Woodbridge and may commence production in other strategic geographic locations in the future. The door products will be incorporated into doors and door systems manufactured by Premdor and distributed through its extensive distribution network in North America, South America, Europe and Asia, including the Middle East.

As part of the Alliance, Steelwood Doors Inc., a subsidiary of Royal producing steel clad entry doors, will be sold to Premdor for $14.5 million, satisfied through issuance of 1 million treasury shares of the common stock of Premdor and $1.25 million in cash. Royal will continue to produce and market its own line of vinyl patio doors and garage doors.

It is expected that the Strategic Alliance Agreement will be concluded and effective by January 31, 2000.

Vic De Zen, Royal's Chairman, President and C.E.O. commented that the Alliance "is a major strategic initiative for both companies, which will bring door products to market that are far superior in quality and durability to those offered currently."

Philip Orsino, President and C.E.O. of Premdor, added that, "the Alliance is a partnership of two entrepreneurial Canadian companies with highly complementary capabilities. It is a powerful combination of Premdor's wide-reaching multiple channel distribution network, sales and marketing expertise and brand identity, with Royal's proven manufacturing expertise and innovative technologies that have played an important role in the rapidly changing markets for building products worldwide."

It is estimated that over 15 million entry and passageway doors and systems are sold in North America alone each year. While Royal is a relatively small player in the global door market, Premdor manufactures and sells over 30 million doors annually.

Premdor operates over 60 manufacturing and value-added facilities in eight countries and has over 7000 employees world-wide. The Premdor Group of Companies manufacture, merchandise and sell their products to large distributors, jobbers, home center chains and wholesale and retail building supply dealers across North and South America, France, the United Kingdom and other countries in Europe and Asia.

Royal Group Technologies Limited is a manufacturer of innovative, polymer-based home improvement, consumer and construction products. The company has extensive vertical integration, with operations dedicated to provision of materials, machinery, tooling, real estate and transportation services to its plants producing finished products. Royal's manufacturing facilities are primarily located throughout North America, with international operations in South America, Europe and, Asia.