VANCOUVER, British Columbia, Nov. 16, 2004 (PRIMEZONE) -- Pinnacle Developments Inc. (Pink Sheets:PNCV) is pleased to announce the signing of a letter of intent to acquire Cantech Fibre Inc., a B.C. hardwood manufacturing company. Cantech Fibre currently has a significant contract to manufacture and deliver hardwood cants for sale to China and other foreign markets. The contract specifies volumes that will ramp up over the next 90 days from 50,000 to 800,000 board feet per month. The contract is expected to generate revenues of $6,650,000 per year in gross revenues and result in $2,515,000 in earnings per year.
Cantech Fibre is itself in negotiations to purchase a hardwood mill currently producing cants for the U.S. market place. This acquisition by Cantech Fibre would provide gains through the vertical and manufacturing integration of bringing the entire process under the control of one company. The mill involved in negotiations has gross revenues of $1,000,000 and earnings of $125,000 per year. It is estimated, however, that with upgrading and expansion the mill could generate $11,000,000 gross revenue per year and $1,500,000 annually. This acquisition would contribute significantly to the earnings of Cantech Fibre Inc. and in turn could provide steady growth and success for Pinnacle Developments.
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Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the company's operations, markets, products and prices and other factors discussed in the company's various filings with the Securities and Exchange Commission.