Normiska Acquires Compressed Baling Line - Increases Perlite Production Capacity January 23, 2001 MISSISSAUGA, ONTARIO -- Normiska Corporation (CDNX - NCO) is pleased to announce the installation of a compressed baling line at the company's Fort Frances production center in Northwestern, Ontario. This will allow the company to more efficiently handle, package and transport the peat it produces. Installation and commissioning has commenced and is scheduled for completion this winter. The effect of this upgrade of the plant and transportation infrastructure will impact on sales margins in the third quarter of fiscal 2001. Overall, $200,000 of this planned $400,000 plant expansion is being provided by way of a federal grant through the Human Resources Development Canada Transitional Jobs Fund. In conjunction with the installation of the baling line the company continues to expand the harvestable area of its Fort Frances peat bog. In other news the company has completed initial modifications to its perlite expansion facilities in Lachine, Quebec. The changes are designed to double the amount of perlite produced over that of the past year. The project was carried out in response to increased demand for Normiska's perlite products. Sales should be impacted by this effort in the second quarter of fiscal 2001. Normiska's core business is the production and manufacturing of horticultural materials for sale to North American markets. Normiska operates production facilities in Lachine, Quebec and Fort Frances, Ontario. These operations supply markets in the continental northeast and the U.S. Midwest, respectively. Normiska has a two-path growth plan which calls for growth by way of development of existing assets and by way of acquisition. Normiska's high quality products are used in landscaping, golf course construction, nurseries and greenhouses. Please visit our website at www.normiska.com Normiska has 6,352,202 common shares issued and outstanding. WATCH US GROW! FOR FURTHER INFORMATION PLEASE CONTACT: John M. Arnold, Chairman and CFO David Graham, President and CEO (905) 212-9555 (905) 212-9526 (FAX) e-mail: normisk1@on.aibn.com No securities exchange has approved nor disapproved of this news release.