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March 29, 1999 01:00 AM

ARIZ. FIRM TO MANUFACTURE, MARKET SURFACING MATERIAL

Ryan Van Benthuysen Crain News Service
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    SCOTTSDALE, Ariz.—American Surface Technologies International Inc. has obtained exclusive rights to make and distribute SafetyPlay II Surfacing worldwide. American Surface Technologies officials expect the product, which won't be available until later this month, to reach $10 million in annual sales within a few years, according to D'Arcy Funfer, investment relations representative.

    SafetyPlay II Surfacing, or SP2, is the only polymer/rubber crumb-based surfacing product on the market that doesn't require on-site mixing, said Jim Loggie, business development and marketing representative.

    The product is used mainly for playgrounds, day-care centers, recreational facilities, landscaping and running and walking paths.

    American Surface Technologies gained the exclusive rights to manufacture and distribute SP2 when on Jan. 20 it took over all the outstanding shares of SafetyPlay Surfaces Inc. of Calgary and American Surfaces Technologies Inc. of Scottsdale.

    The business now has the exclusive license to manufacture and distribute SP2 in the U.S., Canada, Mexico and Central and South America.

    The firm also intends to take advantage of its one-month option to claim distribution rights in the rest of the world, not including the United Kingdom and France, Mr. Funfer said.

    American Surface Technologies plans to build five factories at a cost of $350,000 apiece. Each will produce 10 tons of SP2 per day, he said.

    The first factory, already under construction in Innisfail, Alberta, was scheduled to be completed by March 1.

    Other plants are planned tentatively for construction in Scottsdale, California, New York and Florida, Mr. Funfer said.

    American Surface Technologies officials are banking on an immediate high demand for SP2 on the West Coast based on new California legislation, Mr. Loggie said.

    The new regulations require safe and soft ground surfaces for all playgrounds. Mr. Loggie said he expects similar laws to be introduced in other states.

    ``I think the industry as a whole realizes when it starts in California, it will work its way across the country,'' he said.

    But there are several other playground surfaces that meet California's regulations, including loose fill like sand and fiber.

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