USPL - U.S. Plastic Lumber (USPL)

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U.S. Plastic Lumber Announces Sale of Slip Sheet Business

January 05, 2004

Transaction Strengthens Balance and Improves Focus on Core Business

BOCA RATON, FL, December 18, 2003 - U.S. Plastic Lumber Corp. (OTCBB:USPL), announced today that it has completed the sale of its slipsheet business to Illinois Tool Works Inc. (“ITW”) for a net purchase price of $8.4 million. Proceeds will be used for debt reduction and working capital.

Mark Alsentzer, CEO of USPL stated, “We are pleased that we have been able to close the sale of our slipsheet business to ITW. Although we had developed a strong slipsheet business, the company determined that the business was not an integral part of the future growth plans of USPL. As a result of the transaction, the company plans to reduce debt, and further strengthening our balance sheet. In addition, the sale provides the Company with working capital to allow USPL to continue to focus on what it believes offers the greatest growth opportunity for the foreseeable future.” Mr. Alsentzer also stated that ITW previously purchased the cornerboard business of USPL in May, 2003, which like slipsheet, was a part of the packaging division of USPL.

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Certain statements and information included in this press release constitute “forward looking statements” contained within the meaning of the Private Securities Litigation Act of 1995. When used in this press release, the words or phrases “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “projected”, “intends to” or similar expressions are intended to identify “forward-looking statements”. Such statements are subject to certain risks and uncertainties, including but not limited to risks associated with our credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, the affects of rapid growth upon the Company and the ability of management to effectively respond to such growth, demand for products and services of the Company, newly developing technologies, the Company’s ability to compete, regulatory matters, protection of the Company’s proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussions of such factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations are contained in the Company’s SEC filings.

CONTACT:

U.S. Plastic Lumber Corp.
Mark S. Alsentzer, CEO
561-394-3511

KCSA Worldwide
Evan Smith, CFA or Erica Pettit
212-896-1251 or 212-896-1248

http://www.usplasticlumber.com/news/index.phpfuseAction=item&archives=0&ngID=6&nsID=125