ZCL Partners with Freberg Environmental to Address Florida Underground Tank Insurance Crisis

Orlando, Florida, April 23, 2009 — ZCL Composites Inc. (TSX:ZCL), North America’s largest underground fiberglass tank manufacturer, announced today that it has partnered with Freberg Environmental Insurance of Denver to offer Prezerver, a comprehensive, non-cancellable, ten-year underground storage tank insurance policy for ZCL’s U.S. customers.

The program will be administered by Willis HRH, the North American division of global insurance broker Willis Group Holdings (NYSE: WSH). Edmonton-based ZCL operates in the U.S. through its wholly owned subsidiary, Xerxes Corporation, which it acquired in February 2007. ZCL announced the partnership at the Risk and Insurance Management Society’s 2009 Annual Conference here.

The Prezerver policy is available to owners of ZCL underground storage tanks anywhere in the U.S., but the new policy particularly helps gas station owners dealing with a potential insurance crisis in Florida. Florida’s Department of Environmental Protection has mandated that all existing single-wall tanks be upgraded to secondary containment by December 31, 2009. Potentially thousands of Florida service station and convenience store owners who have not yet upgraded their existing single-wall fuel storage tanks to secondary containment may soon be forced to cease operations. In addition, those who have not completed this required upgrade are experiencing cancellation or non-renewal of their liability insurance policies. For many station owners, these liability insurance policies are required for them to meet federal and state Financial Responsibility requirements, and therefore to remain in business.

The Prezerver insurance solution follows ZCL’s introduction into the U.S. market last year of its Prezerver double-wall storage tanks manufactured with Parabeam®, ZCL’s patented, three-dimensional glass fiber material. ZCL’s unique design of double-wall storage tanks using Parabeam® allows the tanks to be continuously monitored using a brine-filled interstice.

“This advanced design makes it possible to do what was previously thought to be impossible, allowing us to offer a ten-year, non-cancellable policy for a one-time fixed premium,” says the Denver-based underwriter for the program, Stacy Brown, President and Managing Partner of Freberg Environmental Insurance.

The Prezerver insurance policy also is available for U.S. customers of ZCL’s patented Phoenix System™, an in-situ installed secondary containment system. The Phoenix System makes it possible to install ZCL’s highly successful double-wall technology within existing single-wall underground tanks (both steel and fiberglass). The Phoenix System eliminates the need to excavate and replace existing tanks, thereby reducing overall upgrade costs, and nearly eliminating costly “down time” for the related convenience store business of the station operator. The Phoenix System is UL-listed and approved by the State of Florida as a secondary containment system.

“Prezerver is designed to be more efficient and cost-effective than other alternatives intended to satisfy U.S. financial responsibility requirements for station owners,” said Ven Côté, ZCL’s President and Chief Executive Officer. “We believe U.S. customers will respond strongly to the advantages of Prezerver insurance. The combination of Prezerver tanks and Prezerver insurance offers an affordable combination to station owners struggling to comply with the Florida secondary containment deadline.”

Freberg’s Brown said, “Prezerver includes a comprehensive array of insurance coverages in a unique package, including third-party liability, first-party clean-up and physical damage coverages.” One of the factors that enables underwriters to offer such broad coverage is the impressive track record of ZCL’s Prezerver program, Brown added.

ZCL introduced double-wall fiberglass tanks using Parabeam in Canada in 1989 and created the Prezerver insurance policy in Canada in 1996. There has never been a substantiated claim against the Prezerver policy in Canada. For U.S. customers, the one-time premium feature of the Preserver insurance policy eliminates annual renewals, thereby avoiding the likelihood of premium rate increases as tanks age. The Prezerver policy is transferable to a new site owner and lenders can be added as additional insureds. Prezerver is underwritten in the U.S. by Endurance American Specialty Insurance Co., rated A by the rating agency A.M. Best Co. The coverage was arranged by Willis HRH through Freberg Environmental Insurance.

The U.S. coverage offered under Prezerver provides many advantages over alternative financial assurance mechanisms. Unlike most state funds, Prezerver also provides coverage for equipment repair and replacement costs. Further, the Prezerver policy pays on the owner’s behalf as clean-up expenses are incurred, while state funds typically reimburse only after remediation and repair costs have been paid by the site owner.
In addition to the Prezerver insurance policy, ZCL and Xerxes provide a manufacturer’s warranty of up to 30 years against corrosion on its underground fibreglass tanks, provided the products are installed and used solely for storage of listed liquids.

About ZCL

ZCL Composites Inc. is North America’s largest underground fibreglass tank manufacturer. ZCL trades on the Toronto Stock Exchange under the symbol ZCL. Additional information on ZCL may be found at www.zcl.com.

About Freberg Environmental Insurance

Freberg Environmental Insurance (FEI) is an insurance program manager that specializes in developing, marketing and underwriting environmental insurance programs. FEI is part of the Willis Programs unit of Willis HRH, the North American retail business of Willis Group Holdings (NYSE: WSH), the global insurance broker. Additional information about Willis made be found at www.willis.com.

Disclaimer

This news release contains forward-looking statements concerning future events or ZCL's future performance. Actual events or results could differ materially from a conclusion, forecast or projection in such forward-looking statements due to a number of known and unknown risks, uncertainties and other factors affecting ZCL's business, the industries ZCL serves and the economy generally. Certain material factors or assumptions have been applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking statements. ZCL believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

For more information, please contact:

ZCL:

Ronald M. Bachmeier, COO
ZCL Composites Inc.
(780) 466-6648
ron.bachmeier@zcl.com

Freberg Environmental:

Will Thoretz
Willis Group Holdings
(212) 915-8251
will.thoretz@willis.com