Royal Group Completes Acquisition of Imperial Oil's PVC Resin Manufacturing Facility.

TORONTO, Ontario--(BUSINESS WIRE)--Dec. 15, 1998--Royal Group Technologies Limited (TSE:RYG)(NYSE:ME) announced today that it has completed the acquisition of Imperial Oil's PVC resin manufacturing facility located in Sarnia, Ontario. The final purchase price was $67.6 million, before adjustments for working capital items.

Royal will utilize the entire 400 million pound per year capacity of the facility to satisfy the majority of its growing requirements for PVC resin. Production will be rationalized to efficiently produce a limited number of resin grades tailored to the specific needs of Royal's building product and building system operations.

Vic De Zen, Royal's Chairman, President and C.E.O., commented on the deal saying, "it will give us the resin we need in order to accommodate our growth and at the right cost". He added, "the acquisition is particularly timely given the ongoing PVC resin manufacturing industry consolidation".

Royal Group Technologies Limited is one of North America's largest extruders of vinyl building products, serving the custom profile (predominantly window), vertical window blind, siding and pipe segments of the market. Royal's Building Technologies Group manufactures a pre-engineered, modular building system, known as The Royal Building System(TM), and product lines derived from the System including foundations, garages and sheds. Royal's manufacturing facilities are primarily located in North America, with recent additions of facilities in South America, Europe and Asia.

This press release contains certain forward looking statements which should be considered in conjunction with the Management Discussion and Analysis section of Royal's 1997 annual report which identifies certain risks to attainment of envisioned results.