MISSISSAUGA, ONTARIO -- Normiska Corporation (CDN - NORP) is pleased to announce the acquisition of certain operating assets of V.I.L. Vermiculite Inc. (an arms length company) for $3,000,000. V.I.L. manufactured horticultural grades of vermiculite and perlite and was the largest supplier of these products in Eastern Canada. The acquired assets will continue to be operated as a division of Normiska Corporation.

Normiska's core business is the production and manufacturing of horticultural materials for sale to North American horticultural markets.

The acquisition of the V.I.L. product lines and the manufacturing plant for vermiculite and perlite will compliment Normiska's existing line of professional grade sphagnum peat moss, pine bark mulches and bark composts. Vermiculite and perlite are mineral feedstocks which are blended with peat moss and bark in value added blended horticultural soil-less growing mediums.

With the acquisition Normiska will operate production facilities in Lachine, Quebec and Fort Frances, Ontario. These operations supply markets in the continental northeast and the U.S. midwest, respectively.

The immediate significance of the purchase will be an increase of revenue to Normiska from $1.2 million in 1998-99 to a projection of total revenue in excess of $7.0 million in 1999-2000.

Normiska has acquired the V.I.L. marketing and operational team, providing an opportunity to penetrate new geographic regions and product sectors. This integration of expertise will increase Normiska's ability to expand in response to the high growth experienced in horticultural markets.

Normiska is a rapidly developing company that has identified high growth opportunities in the horticultural sector. Normiska's high quality products are used in landscaping, golf course construction, nurseries and greenhouses.

The purchase price of $3,000,000 in the agreement calls for a cash payment of $2,460,000 and $540,000 through the issuance of common shares of Normiska. A total of 564,204 common shares have been issued to satisfy equity portion of the purchase price. The company has secured $2,000,000 in debt financing with Laurentian Bank of Canada, repayable over 48 months at an interest rate of prime plus 1.75%, and has negotiated a subordinated loan in the amount of $600,000, repayable at the end of fifty months bearing interest at prime plus 3% per annum, to satisfy the cash portion of the purchase price.

The company has retained Goepel McDermid Inc. as agent to issue a minimum of 530,000 and a maximum of 2,000,000 special warrants, convertible into common shares at a price of $0.95. Proceeds of this offering will be employed for working capital and for expansion of production capacity to meet demand.

Normiska has 5,650,544 common shares issued and outstanding following the issuance of 524,204 shares to complete the V.I.L. acquisition. 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.