Composite Solutions Inc. Announces Record Revenue and Earnings.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--March 11, 2004

Composite Solutions Inc. (CSI) (OTC BB: KIPS) announced record revenue and earnings for the 1st quarter of Fiscal Year 2004. The quarterly revenue of $687,170 was substantially greater than the annual revenue for CSI's fiscal years 2003 and 2002 ($426,021 and $227,439, respectively). With net income of $75,588, CSI reported its first profitable quarter. CSI also announced the issuance of a secured Promissory Note providing $300,000, less issuance costs, to be used for operating capital during the 2nd and 3rd quarters of fiscal year 2004. This note is payable on or before July 9, 2004.

The improved financial performance reflects the growing acceptance of CSI's Retroshield(TM) system in Korea where it is marketed and installed by Composite Solutions, Korea (CSK) under an exclusive license agreement with CSI. "The CSI-CSK partnership is demonstrating the performance of CSI's structural engineering technology in an important Asian market," said Thomas Bache, CSI President. "We look forward to working with CSK on an expanding range of activities over the next several years."

Over the past six months, CSK installed Retroshield(TM) systems to strengthen several structures in Seoul. "CSK is especially proud of our contribution to the Cheonggyecheon restoration project," said Frank Park, CSK President. "Retroshield(TM) provided an innovative new way to strengthen the existing slabs as the old viaduct was opened to restore a natural environment as this river flows through central Seoul."

CSI is an early-stage company providing innovative new technology solutions for a wide variety of civil engineering and construction applications. The core technology is integration of fiber-reinforced polymer (FRP) composite materials with traditional construction materials for dramatic improvements in structural performance.

Except for historical information contained in this document, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company and its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory, reimbursement and trade environment; and the risk factors reported from time to time in the company's reports filed with the Securities and Exchange Commission.