Ginsite Materials Signs Agreement to Merge with Envirocon To Create a Construction Supplier Powerhouse... Appoints Wayne Doss as New CEO.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--June 30, 1999--

In a move to maximize marketing contacts and create the most cost-effective and technologically advanced wall paneling system in the construction industry, Ginsite Materials, Inc. (OTC BB:GSIT) of Fort Lauderdale, FL has an agreement to merge subject to due diligence with Envirocon, a Denver-based construction industry supplier.

According to Envirocon's president and CEO, Frank Glinton, "Our high-wind and earthquake-resistant building panels are ideal for the construction of residential homes and commercial buildings. Ginsite's technologically superior coating material perfectly complements our product. Combining the two gives us one of the most marketable construction solutions available worldwide."

The Envirocon Panel, manufactured from steel mesh and an insulated foam core, has the structural integrity to build multi-story buildings, as well as single family homes.

The company has signed a five-year agreement with Affordable Homes of America (OTC BB:AHOA) to sell Affordable Homes 80% of all Envirocon Panels produced in the United States for use in the construction of low and medium priced homes. The company also has a firm letter of intent from United Builders International. of Santa Rosa, CA to provide panels for the construction of 50,000 homes over the next five years.

Murray Ginsberg, the inventor of Ginsite and founder of Ginsite Materials, Inc. sees great potential with the marketing and financial incentives for the merger, but stresses that there is even more to it. "There is a tremendous level of synergy between Ginsite and Envirocon," he explained. "It's like the cliche, `a whole is more than the sum of its parts.' We work very well together and we're already seeing how Ginsite and Envirocon have more opportunities when together than as separate entities."

This merger comes shortly after Ginsite's decision to appoint Wayne Doss as its new CEO in charge of running the day-to-day operations of the company. Doss, a 20-year veteran of the manufacturing and construction industries, gives Ginsite the strong business direction it needs to realize its goals for mass production and global marketing and sales.

Doss comes to Ginsite after serving as president of Keller Industries, a $250 million diversified building products company. While at Keller, he successfully doubled the sales of the ladder division, reduced corporate overhead in half on three occasions, eliminated the use of hazardous chemicals, and negotiated the sale and purchase of several divisions. Doss's extensive management background gives Ginsite a decisive, proven leader.

"We have an exceptional product and I'm excited to be playing such an integral role during this period of renewed growth," Doss said. "Plus, with Envirocon's marketing expertise, we can easily reach further into markets we've just barely touched, like West Indies, Pacific Rim and Asia. I am very optimistic about our future."

Ginsite Materials, Inc. has created the material formulation to solve a critical worldwide environmental and housing need. Inspired by the goals of ending deforestation and providing shelter to families in third-world countries, the company manufactures a high-quality, affordable coating material for the building and marine industries.

Ginsite's interactive web site--www.ginsite.com--provides detailed product and application information. As a direct marketing channel, the internet has proven itself to be a very effective tool for Ginsite. It allows users (including the company `s target market of do-it-yourselfers and contractors) to enjoy easy access to mixing instructions and application tips, as well as pricing and online ordering.

Terms of the merger agreement have not been disclosed. No stock exchange has approved or disapproved the information contained herein. The statements contained in this document, which are not historical facts, may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, demand and competition for the Company's products and services, and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings.