Primix Corporation (PMXX)

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(BUSINESS WIRE) --Primix Corporation (NASDAQ OTC:PMXX) developer and manufacturer of the "Primix Tie" is delighted to announce that a Joint Venture/License Agreement between Primix Corporation and Qingdao Maple Leaf Environmental Technologies, Inc. (QMLET) was finalized and signed on April 28th, 2005. This agreement allows QMLET to produce the "Primix Tie" exclusively in China. This contract was signed pursuant to The State Intellectual Property Office of the Peoples Republic of China allowing the Primix patent for a composite railroad crosstie. Primix filed a patent application in China on November 12, 1999 based on its US patent application. This application was published in the Chinese Patent Gazette for Invention, Volume 18, Issue Number 4. The application was granted on December 24, 2004. The Chinese Patent Certificate will be issued about June 8, 2005. This much anticipated development has been a major hurdle in the signing of a Joint Venture/License Agreement with Qingdao Maple Leaf Environmental Technologies, Inc.

Extensive time was needed to finalize all the terms and conditions for this dramatic new joint venture. The basics of the Joint Venture/License agreement provides for a per crosstie royalty and a 25% equity interest of QMLET by Primix Corporation, making Primix one of the "only" composite crossties licensed in China.

Mr. Yuan Qiang, President/CEO of Qingdao Maple Leaf Environmental Technologies, Inc., projects, "The Primix China plant will be in production by September 15, 2005. It is anticipated that production should reach 500,000 crossties within six months and 1,000,000 crossties by September 15, 2006." The Primix China plant is a new 60-acre complex complete with a 70,000 sq. ft. production facility, including a three-story office complex, a warehouse, two engineering buildings, a canteen, and multiple three-story buildings to house employees. The production capability of this new plant is 2,000,000 crossties/sleepers per year.

China is one of the world's fastest growing economies. According to the China Railways Magazine Number 2/2000, China planned to invest 50 billion annually in railway construction from 2000 to 2005. In 2000, China had 70,057 total km (43,531 miles) of track by 2003 this had increased to 73,002 km (45,361 miles) an increase of 6% over a three year period. By 2020, China has the ambitious goal of adding 28,000 km (17,398 miles) of railways. In the last 30 years China's total rail has increased by 33%. The anticipated need for new crossties in China for the next few years is close to 90,000,000 crossties.

This press release contains forward-looking statements identified by words such as "believe," "expect," "anticipates" and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Primix Corporation cautions investors not to place undue reliance on forward-looking statements, which speak only as to management's expectations on this date.

Some paragraphs of this press release, particularly those describing Primix's strategies, operating expenses reductions and business plans, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended and Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Primix is working to achieve those goals, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in marketing its products and services, need for capital, competition from other companies and other actors, any of which could have an adverse effect on the business plans of Primix, its reputation in the industry or its expected financial return from operations. Factors such as these could have an adverse effect on Primix's results of operations. In light of significant uncertainties not included in the forward-looking statements herein, the inclusion of such information should not be regarded as a representation by Primix that it will be achieved.

SOURCE: Primix Corporation

Primix Corporation
Carl Fischer (Investor Relations), 574-858-0069
Web Site: http://www.primixcorp.net

Copyright Business Wire 2005