BlueFire Research Initiates Coverage of EPII.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by BlueFire Research

MINNEAPOLIS--(BUSINESS WIRE)--April 18, 2000

Eagle Pacific receives Outperform rating,

12-month target price of $24.50/Share

BlueFire Research, an SEC registered investment adviser affiliated with BlueFire Partners, today initiates coverage of Eagle Pacific Industries, Inc. (Nasdaq: EPII - $12 1/8) with an Outperform rating and a 12-month target price of $24.50 per share, based on an enterprise valuation of five times EBITDA for the fiscal year that ends in December 2000. Eagle Pacific Industries, based in Minneapolis, Minnesota, is North America's second largest producer of PVC pipe, the ubiquitous plastic pipe used for plumbing, electrical conduit, irrigation, and a host of other applications.

"We are initiating coverage of Eagle Pacific Industries with an Outperform rating," said BlueFire Research Managing Director Lee Schafer. "In our view, Spell Capital Partners, the equity buyout group that controls the company, has created both a low-cost producer as well as an industry leader that can continue to take market share through consolidation."

"The company is operating in a very favorable industry environment, and unless the economy goes into a sharp recession, these conditions should last into 2001," Schafer continued. "We also take comfort in the fact that Eagle Pacific is a growth company that will generate real cash earnings in 2000 of more than $3 per share."

Effective April 27 and pending shareholder approval, Eagle Pacific Industries will change its name to PW Eagle, Inc., and its Nasdaq symbol will become PWEI.

The initial research report on Eagle Pacific Industries will be made available to BlueFire's proprietary database of investment professionals and through a number of the nationally recognized services that currently provide equity research online or by traditional subscription means. For more information and a copy of the Eagle Pacific Industries report, please send an electronic mail message to [e-mail] or telephone [phone].

BlueFire Research was formed in January by Minneapolis-based BlueFire Partners to provide investment research on small capitalization growth companies in health care, technology, financial institutions, consumer, and industrial growth sectors. BlueFire Research prepares and provides research reports and periodic updates to investment professionals and the investment community on mid-cap, small-cap and micro-cap companies who, in most cases, are clients of BlueFire Partners. The reports include earnings estimates and recommendations based on fundamental and relative valuation models.

BlueFire Partners has a national reputation for expertise in advising growing companies in the areas of investor relations, media relations, public relations, corporate strategy and quality initiatives, as well as providing graphic design services. The firm is one of the largest independent public relations firms in the Twin Cities and has the largest investor relations practice in the Midwest with more than 40 publicly held clients. BlueFire has 26 employees and associates and is a member of the Phoenix Network of independent public relations agencies in North America and Europe.

The research report on Eagle Pacific Industries was prepared by BlueFire Research, a Registered Investment Adviser, and an affiliate of a company that provides a variety of professional services for the subject company of this report. Those services can include, but not be limited to, investor relations and public relations counsel, media consulting, graphic design, and management consulting. However, the subject company of this report has paid no direct compensation to the investment adviser or its affiliate for the preparation, distribution, and dissemination of this report. This report is for information purposes only and does not constitute an offer or solicitation of an offer to buy or sell any securities. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. No officer, director or employee of BlueFire Research, or its affiliate, owns securities in the subject company of this report unless otherwise and specifically disclosed.