Installation of Raymor's High Capacity Single-Walled Carbon Nanotubes Production Unit Completed: Operations Begin.

MONTREAL -- Raymor Industries Inc. (TSX VENTURE:RAR), a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, is proud to announce that the installation of its high capacity unit for the production of single-walled carbon nanotubes has now been completed, and operations will begin immediately.This is a key milestone towards demonstrating to major customers, including those in the aerospace and defense sectors, our capacity to produce high quality single-walled carbon nanotubes at high throughputs.The capacity of this first single-walled carbon nanotube production unit will increase to 10,000 grams/day during the 2nd quarter of 2006. Following this, Raymor will install new units to meet market demand, thus becoming the largest producer of single-walled carbon nanotubes in the world.

"Our single-walled carbon nanotubes will be a technology platform for the commercialization of numerous applications in aerospace, defense, energy, and other sectors," said Mr. Stephane Robert, President of Raymor Industries. "With major aerospace manufacturers committing to the construction of composite-based commercial aircraft, our capacity to supply high quality single-walled carbon nanotubes will serve as a catalyst for the incorporation of these phenomenal materials in new aircraft," added Mr. Robert.

Single-walled carbon nanotubes are unique forms of pure carbon, which are up to 100 times stronger than steel at 1/6th the weight i.e. very strong, lightweight materials. These materials have impressive electrical properties, as they can conduct electricity up to 1000 times greater than copper. Single-walled carbon nanotubes can transfer heat up to 10 times greater than copper. Given these phenomenal properties, single-walled carbon nanotubes will be the technology platform for a multitude of applications, including:

Aerospace:       Electrically active, thermally conductive polymers,
                 nanotube structural enhanced composites; etc.
Defense:         Enhanced lightweight ballistic protection, field
                 sensors; etc.
Energy:          Hydrogen storage for fuel cells, battery electrodes,
                 etc.
Electronics/IT:  Heat sinks; nanochips, hard drive heads, etc.
Medical:         New drug delivery medications, devices, etc.
Sports:          Enhanced golf, tennis, baseball, cycling equipment,
                 etc.
Telecom:         Antennas, microwave amplifier devices, etc.
Automotive:      Fuel cells, structural components, electronics; etc.
Consumer:        Flat panel displays, textiles, paint, efficient
                 lighting, water filtration, etc.

Raymor's high quality single-walled carbon nanotubes are produced using a unique, patented, plasma-based process. As compared to the other techniques for commercially producing single-walled carbon nanotubes (CVD, Gas Phase CVD, Arc, Laser Ablation), Raymor will produce in a continuous process large volumes of high quality single-walled carbon nanotubes at a reasonable price to facilitate the full integration into commercial products.

The Freedonia Group, in a report released in January 2006, predicts the global carbon nanotubes market to be a US$10 billion industry by 2020.

About Raymor Industries

RAYMOR INDUSTRIES INC. (TSX-V:RAR) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephane Robert, President.

The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release

RAYMOR INDUSTRIES INC. (TSX VENTURE:RAR)