Royal Group advises of challenging business conditions in second quarter & announces plan to enhance performance and shareholder

Royal Group advises of challenging business conditions in second
quarter & announces plan to enhance performance and shareholder value 


TORONTO, July 15  /PRNewswire-FirstCall/ -- Royal Group Technologies Limited
(RYG-TSX; RYG-NYSE) today advised that its consolidated sales were less than it
expected during the second quarter, partly as a result of inclement weather
conditions early in the quarter. In addition, Royal advised that its gross
margins continue to be under pressure from higher raw material costs. The
Company expects second quarter earnings per share to be substantially below
earnings per share of $0.38 reported for the comparable quarter in the previous
year. Royal Group will report its second quarter financial results on August
12, 2005.

Looking forward, the Board wants Royal Group to be prepared for either the sale
of the Company, or its continuation as a public entity should a fair offer not
result from the previously announced sale process. Therefore, the Board has
approved a four-part management plan aimed at improving financial performance,
and identifying the appreciation in values of certain assets. The plan contains
the following elements:

      -  Business unit portfolio restructuring, involving identification of
         measures to create value from non-core operations, and actions to
         recast or divest of non-performing operations;
      -  Actions to identify and quantify cost and margin opportunities,
         divisionally and across the enterprise;
      -  Enhancing the full potential of core businesses through
         development of a strategic plan by September 2005; and,
      -  Exploration of options to refinance the Company, which include the
         recognition of the value imbedded in real estate.



To assist with the first three elements of management's plan, a premiere global
strategy consulting firm has been retained. Royal Group envisions the
consulting firm's participation to span six months. They will also assist with
development of plans to improve the Company's information and reporting
systems.

To address the Company's inefficient capital structure and to improve its
liquidity position, various refinancing alternatives are being explored,
including possible monetization of Royal Group's extensive industrial real
estate portfolio. RBC Capital Markets Real Estate Group has been retained to
evaluate options for the possible monetization of Royal Group's extensive real
estate holdings, in the context of the prevailing strong market for industrial
and commercial buildings. PricewaterhouseCoopers is also assisting the Company
in evaluating the real estate options, including potential tax implications.

Royal Group's Board intends to meet as needed during the summer to review
actions recommended by management within the foregoing framework, and make
timely decisions related thereto. The Company will announce any major decisions
taken and their anticipated impact on financial results.

Any actions taken will be intended to enhance shareholder value, whether the
Company is sold or continues as a public entity.

Lawrence J. Blanford, who was appointed President and CEO of Royal Group on May
24, 2005, commented on his Management team's evolving plans saying, "we are
beginning to make the difficult decisions necessary to deal with our tough
business situation, by targeting our plans at improving profit margins,
reducing invested capital and providing greater strategic focus to the
organization." Mr. Blanford concluded saying, "we intend to implement our plans
to create value with a sense of urgency, working to build the confidence of
customers, suppliers, employees and financial stakeholders".

The company will host a conference call pertaining to its financial results at
10:00 AM on August 12, which will be webcast simultaneously and in its
entirety. The webcast can be accessed though the company's web site at
http://www.royalgrouptech.com/.

Royal Group Technologies is a manufacturer of innovative, polymer-based home
improvement, consumer, and construction products. The company has extensive
vertical integration, with operations dedicated to provision of materials,
machinery, tooling, real estate, and transportation services to its plants
producing finished products. Royal's manufacturing facilities are primarily
located throughout North America, with international operations in South
America, Europe, and Asia. Additional investment information is available on
Royal Group's web site at http://www.royalgrouptech.com/ under the "Investor
Relations" section.

The information in this document contains certain forward-looking statements
with respect to Royal Group Technologies Limited, its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature, these
forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are inherently
subject to significant, known and unknown, business, economic, competitive and
other risks, uncertainties and other factors affecting Royal specifically or
its industry generally that could cause actual performance, achievements and
financial results to differ materially from those contemplated by the
forward-looking statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the outcome of the
ongoing internal review and investigations by the Special Committee of the
Board of Directors; fluctuations in the level of renovation, remodeling and
construction activity; changes in product costs and pricing; an inability to
achieve or delays in achieving savings related to the cost reductions or
increases in revenues related to sales price increases; the sufficiency of our
restructuring activities, including the potential for higher actual costs to be
incurred in connection with restructuring activities compared to the estimated
costs of such actions; the ability to recruit and retain qualified employees;
the level of outstanding debt and our current debt ratings; the ability to meet
the financial covenants in our credit facilities; changes in product mix; the
growth rate of the markets into which Royal's products are sold; market
acceptance and demand for Royal's products; changes in availability or prices
for raw materials; pricing pressures resulting from competition; difficulty in
developing and introducing new products; failure to penetrate new markets
effectively; the effect on foreign operations of currency fluctuations,
tariffs, nationalization, exchange controls, limitations on foreign investment
in local business and other political, economic and regulatory risks;
difficulty in preserving proprietary technology; adverse resolution of any
litigation, investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or environmental
laws, rules and regulations; currency risk exposure and other risks described
from time to time in publicly filed disclosure documents and securities
commission reports of Royal Group Technologies Limited and its subsidiaries and
affiliates. In view of these uncertainties we caution readers not to place
undue reliance on these forward-looking statements. Statements made in this
document are made as of July 15, 2005 and Royal disclaims any intention or
obligation to update or revise any statements made herein, whether as a result
of new information, future events or otherwise. 

DATASOURCE: Royal Group Technologies Limited



CONTACT: Mark Badger, Vice President of Marketing and Corporate

Communications, Royal Group Technologies Limited, Phone [phone]

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