Diversified Thermal Solutions Announces the Creation of Subsidiary Distribution Company, Refractory & Industrial Supply Group, Inc.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Jan. 2, 2003

Diversified Thermal Solutions, Inc. (OTC-BB: DVTS) announces the creation of its 100% wholly owned subsidiary Refractory & Industrial Supply Group, Inc. (RIS Group). RIS Group will act as the marketing and distribution arm for all of the refractory products and has been operating and generating revenue since October, 2002. Diversified's President & CEO, B. Grant Hunter stated, "We have recently entered into arrangements for the supply of refractory bricks and specialties (castables, mortars, and plastics). Two arrangements are with companies representing bricks from Chinese manufacturers that will enable us to supplement our domestically produced brick lines with basic, extra high alumina, and fused / vitreous silicia brick and special shapes. The other is with Reno Refractories, Inc. (www.renorefractories.com), a specialties manufacturer in Morris, Alabama." Mr. Hunter further stated, "These relationships are important because this will allow RIS Group to offer our customers a complete line of quality refractory products at very competitive prices, and also avails a new sales outlet, through Reno, for our brick lines due to the fact that Reno is a specialties producer only. We have also aligned with several Manufacturer's Representatives that will represent all of our brick lines, allowing for additional sales outlets with coverage in the Northeast and Southeastern U.S., and Central and Western Canada. As RIS Group continues to grow so will the product lines we will offer. Our ultimate goal is to become a true industrial supply operation, additionally offering insulating products such as insulating firebrick, ceramic fiber clothes, blankets, and boards, wear products, corrosion applications, metallic anchors, and welding and safety supplies."

Safe Harbor Statement

These statements constitute forward-looking statements (within the meaning Private Securities Litigation Reform Act of 1995), which involve significant risk and uncertainties. A variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements.

DVTS does not assume any obligation to update these forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Factors that could cause such a difference include, but are not limited to general economic and market conditions, the business opportunities (or lack thereof) that may be presented to and pursued by the Company, changes in laws or regulations affecting the Company, and other factors, most of which are beyond the control of the company.