AT Plastics Starts Commercial Production At Edmonton Copolymers Plant.

EDMONTON, Alberta--(BUSINESS WIRE)--Dec. 4, 1998--AT Plastics Inc.(TSE:ATP.) (AMEX:ATJ) AT Plastics today announced the completion and initial start-up of commercial production at its expanded Edmonton copolymers plant. This world-class facility incorporates extensive proprietary technology and is expected to increase the Company's copolymer production capacity by upwards to 70 percent in 1999. Construction of the plant commenced in the spring of 1996, with completion targeted for this fall.

"Our new copolymers plant has been designed to produce a wide range of specialty products, some of which were difficult to produce in the pre-expanded facility," said J. G. (Geoff) Clarke, President & Chief Executive Officer. "We are pleased with the initial performance of the new plant, and can now begin to assess its total capabilities over the next few months."

The Edmonton copolymers plant is expected to reach capacity operation relatively quickly, as the Company has established marketing plans to sell product in North American and off-shore markets, including Europe and the Pacific Rim.

"We are excited about our ability to increase sales after a number of years of essentially fixed capacity," explained Clarke. "Our initial product mix will include a smaller proportion of specialty products in the early years of operation. However, we will gradually enhance the product mix from this facility to include a higher proportion of specialty products, with the objective of achieving pre-expansion margins within a few years."

The expansion of the Edmonton copolymers facility is the largest component of a five part expansion program. This program is designed to about double AT Plastics' sales capacity to $400 million, based on 1998 average selling prices and product mix. The last phase of this expansion program is the Company's specialty compounds facility located in Peachtree City, Georgia. This plant is currently in the final stages of commissioning.

The total cost of the Company's expansion program, which was initiated in 1995, is approximately $230 million. This cost includes training, commissioning, insurance and capitalized spare parts, but not capitalized interest.

AT Plastics develops and manufactures specialty plastics raw materials and fabricated products. The Company operates in specialized markets where its product development and process engineering have allowed it to develop proprietary and patented technologies, and to establish international niche market positions. AT Plastics' shares are listed on The Toronto Stock Exchange, under the trading symbol "ATP", and on the American Stock Exchange, under the trading symbol "ATJ".

The preceding discussion is based on current available information and management expectations. Actual results may differ materially. AT Plastics reports in Canadian dollars.