Composite Solutions Inc. and MI Pipes Form Technology Partnership to Manufacture Carbon Liners for Large Water Conduit Renewal; Partnership to Service Global Market.

Business Editors and High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--March 28, 2002

Composite Solutions Inc. (CSI) (OTCBB:KIPS) announced today that it has signed a Technology Partnership Agreement (TPA) with MI Pipes (M) Sdn Bhd. of Malaysia (a Subsidiary of Timah Langat Holdings Sdn Bhd.).

Under the TPA, Composite Solutions Inc. (CSI) and MI Pipes (MIP) will join forces to design, manufacture, and market carbon composite liners for the structural renewal of large Pre-stressed Concrete Cylindrical Pipes (PCCPs).

PCCPs are used worldwide to transport water from its source to urban areas. The pipes are typically high pressure (e.g., 8 to 24 bar) with diameters ranging from up to 22 ft. The pipe construction is generally concrete with no internal reinforcement; instead they are over-wrapped with steel pre-stressing strands. Since their inception in the mid 1940s, over 20,000 miles of PCCPs have been placed in the U.S. alone. A significant portion of these are now approaching the end of their lifespan which, in turn, has been cut short in many cases by corrosion of the steel strands due to adverse soil chemistry and other factors. Pipe replacement is not desirable because of the large costs involved. Structural liners represent a more affordable solution. The development of Carbon Composite liners is perceived to be advantageous from the standpoints of system cost, installation speed and durability.

CSI (www.compositesolutionsinc.com) provides innovative solutions to the construction industry via the application of fiber-reinforced polymer composites (FRPs). Advanced forms of these materials, which were developed for the defense industry beginning in the 1960s, typically consist of ultra high-strength carbon fibers in a thermoset (e.g., epoxy) matrix (CFRPs). Such fibers are significantly stronger and lighter than construction steel. Under the TPA, CSI will design the CFRP liners, develop the necessary liner fabrication process, and recommend liner installation methods and quality control procedures.

MIP (www.mipipes.net) is a company established in Malaysia with expertise in the manufacturing and marketing of pipes based on the use of glass fiber-reinforced polymer (GFRP) composites. MIP also has expertise in the production of GFRP liners for pipe rehabilitation. Under the TPA, MIP will develop and test manufacturing procedures for the large-scale production and distribution of the higher strength CFRP liners deemed necessary for PCCP rehabilitation.

The TPA contains provisions that define the sharing of revenues between CSI and MIP that result from the sales of liners for PCCP rehabilitation.

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.