Innovative Composites International Inc. Enters Agreement to Sell Certain Assets

Innovative Composites International Inc. (CSE:IC) ("ICI", or the "Company") is
pleased to announce that it has entered into an agreement pursuant to which
ICI's wholly-owned subsidiary, Innovative Composites, Inc. (the "Subsidiary"),
will sell all of the assets located at the Subsidiary's facility in Sault Ste.
Marie, Michigan (the "Facility") for aggregate consideration of US $1,300,000,
subject to customary closing adjustments (the "Transaction").


ICI and the Subsidiary will provide the purchaser with an exclusive right and
license for the use of all intellectual property used in the operation of the
Facility. This intellectual property license is limited to the automotive
industry (trucks and buses) and is irrevocable, subject to the purchaser paying
a royalty equal to 2.5% of collections from the sale of products utilizing the
licensed intellectual property. 


The assets being sold pursuant to the Transaction include, among other things,
all the Subsidiary's machinery and equipment, supplier and customer contacts as
well as certain licenses, permits, approvals, and relevant records which pertain
to the operations at the Facility.


In addition to customary closing conditions, the Transaction is subject to
approval by the Company's debentureholders, who have security over certain
assets of the Company including the Subsidiary's assets located at the Facility
which are being sold pursuant to the Transaction.


ICI intends to use the proceeds of the Transaction will be used to repay
indebtedness related to the Facility and for general corporate purposes.


"We are pleased about what this transaction means for us," said Mark Rivers,
ICI's Chief Executive Officer. "It is continued validation of the value and
uniqueness of our technology and provides us with much needed working capital,
allowing us to focus our efforts, costs and operations in one location, which is
appropriate for our current development stage," Mr. Rivers continued. 


About Innovative Composites International Inc.

Headquartered in Toronto, Canada, Innovative Composites International Inc. is a
high-tech engineering and manufacturing company whose goal is to utilize its
proprietary "green" composite materials and building systems to provide
innovative, engineered product solutions to markets that include shelters and
containers, construction and housing, and industrial applications.


To find out more about ICI please visit our website at:
www.innovativecompositesinc.com.


The CSE has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.


Statements made in this press release include forward-looking statements that
involve a number of risks and uncertainties. These statements relate to future
events or future performance and reflect management's current expectations and
assumptions. The forward-looking statements contained in this document are based
on certain key expectations and assumptions made by ICI, including expectations
and assumptions concerning the approval of the Transaction by ICI's
debentureholders.


Although ICI believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because ICI can give no assurance
that they will prove to be correct. Since forward looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to, the failure to close the Transaction based on the inability of
either party to meet a condition to closing as set forth in the purchase
agreement or the failure to obtain the requisite debentureholder approval.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Innovative Composites International Inc.
Mark Rivers
Chief Executive Officer
[phone]
[e-mail]
www.innovativecompositesinc.com