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URETHANE TECHNOLOGIES AGREES TO SUPPLY FLAT-FREE AIRLESS BICYCLE TIRE TECHNOLOGY TO TWO ASIAN MANUFACTURERS

 Company Expects To Become Profitable In First Half Of 1994
 IRVINE, Calif., July 7 /PRNewswire/ -- Urethane Technologies Inc. (NASDAQ: UTEC) today announced it has reached agreements to supply its airless tire technology to two Asian bicycle tire manufacturers. Based on the production volumes projected by those manufacturers, the company expects to become profitable in the first half of 1994. Shipment of the company's proprietary chemical compounds used to produce the tires is anticipated to begin in the third quarter, 1993.
 One manufacturer has requested its first shipment of the company's proprietary chemicals be delivered in August. That manufacturer has estimated its chemical requirements will be based on producing 500,000 to 750,000 bicycle tires in 1993 and 2 million tires in 1994. The manufacturer has requested the company not disclose its name, for competitive reasons, until the end of the year when it has solidified its market position.
 Urethane Technologies has also signed a letter of understanding to supply its bicycle tire technology to Wei Hei Yicklong Industrial Development Co. Ltd., a Chinese conglomerate that has a light industrial and bicycle-tire manufacturing division, based in the Shandong province of the People's Republic. Wei Hei estimates its chemical and other technological support needs to be based on production and sales of up to 500,000 bicycle tires in 1993, 3 million tires in 1994 and 5 million tires in 1995.
 The Wei Hei supply arrangement is subject to execution of a chemical sales agreement expected to be completed some time in the third quarter of this year, with chemical shipments to follow immediately.
 A Urethane Technologies technical team has been working with both new customers to adapt their existing manufacturing equipment to be able to produce the company's airless bicycle tires.
 Roy McClellan, Urethane Technologies president, said, "It is gratifying to see our intensive research and development and marketing efforts of the past couple of years coming to fruition.
 "While we believe these two agreements, based on the customers' projected requirements, will enable Urethane Technologies to become profitable sometime in the first half of next year, this does not take into consideration potential revenues from a recently announced licensing agreement with Taiwan-based Fore Better International Development Co. (FBID) or any other existing or prospective company business. FBID has stated it is currently conducting market research and evaluating distribution channel options," McClellan added. "We remain actively involved in discussions with other potential OEM customers throughout Asia -- the world's largest bicycle market."
 Urethane Technologies develops proprietary polyurethane technology which the company licenses and sells to original equipment manufacturers. Applications now in development include airless bicycle tires, bathroom and kitchen fixtures and athletic shoe soles.
 For information on Urethane by fax, dial 800-PRO-INFO, ext. 171.
 -0- 7/7/93
 /CONTACT: Julie Creed (Chicago), 312-266-7800, Sue Caulton (San Francisco), 415-986-1591, or John H. Shaw (Los Angeles), 818-783-2400, all of The Financial Relations Board for Urethane Technologies/
 (UTEC)


CO: Urethane Techonolgies Inc.; Wei Hei Yicklong Industrial
 Development Co. Ltd. ST: California IN: SU: CON


LM-MF -- LA004 -- 8941 07/07/93 09:01 EDT
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Date:Jul 7, 1993
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