Cryopak Industries Inc. Purchases Northland Ice-Gel and Northland Custom Packaging; Positioning the Company for Immediate Growth and Rapid Expansion.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 16, 1999--

Cryopak Industries Inc. (VSE: CII.V) Thursday signed an agreement in principle to purchase Northland Ice-Gel Inc. and Northland Custom Packaging Inc.

Cryopak will pay a purchase price, primarily in cash, but facilitated by the issuance of common stock and "earn-out provisions" that call for continued growth in sales and EBITDA. (At this time, details of the purchase price are not being revealed for competitive reasons).

The purchase is subject to the completion of due diligence, signing a formal purchase agreement and approval of the Vancouver Stock Exchange.

The Northland companies have experienced an average annual growth rate of 80 percent in each of the past two years and sales are estimated to reach $3.5 million CDN in the current fiscal year.

Cryopak Industries Inc., through its 100 percent owned subsidiary Cryopak Corp. develops, manufactures and markets temperature controlling products and packing systems into a diverse market of perishable product transportation including the shipping of temperature sensitive pharmaceutical and seafood products.

The products have also been introduced into the airline catering sector as a safe alternative to dry ice in the temperature maintenance of airline food and beverages.

John Morgan, president and chief executive officer of Cryopak Corp. stated, "The acquisition of the Northland companies clearly enhances our potential for rapid expansion through cross-selling opportunities; allows for immediate expansion of our sales force; and will be accretive to Cryopak earnings resulting in positive cash flow for the combined venture."

As a leading manufacturer of gels and gel packs, Northland will provide additional sales channels that will directly benefit Cryopak. The addition of gel technology will enhance the total available product line for advanced packaging solutions.

In addition to the standard gel pack, Northland manufactures hot and cold gel inserts for a major consumer products company which are sold under their brand. In October of this year, the company will begin shipping a "comfort gel pack", an application for retail called "Simply Cozy," to K-Mart.

Another retail product with hot and cold applications marketed under the "Equate" brand name is being sold through Wal-Mart/Canada.

Charn Rai, the founder of Northland Ice-Gel and Northland Custom Packaging also shares in the vision for expansion through this acquisition.

Rai stated, "Many of the users of our products also use Cryopak products for shipping. The products can be used individually or in combination depending on the shipping requirements. The synergy of the products both in terms of sales and manufacturing efforts will greatly enhance our growth."

Northland was founded in 1989 as a family-owned business with four employees. Today it has 30 employees and provides products to customers across North America. In addition to its relationship with Cryopak products the company provides contract packaging services to companies worldwide.

Morgan concluded, "The acquisition of the Northland companies further expands our efforts to become the premier provider of temperature controlled packing solutions. Our own recent steps towards product branding and development of a retail product line will obviously be enhanced by this relationship."

Note: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.