The letter of intent sets forth commercial terms under which Dynetek and Luxfer may enter into a joint venture to manufacture and market CNG cylinders for the U.S. transit bus market in accordance with "Buy America" requirements. The parties will also consider expanding the scope of the proposed joint venture to include the CNG markets for China and India. The joint venture is subject to approval by the boards of directors by both companies and to execution of a formal joint venture agreement by September 30, 2004.

"This relationship is an incredible opportunity for Dynetek to pursue those CNG markets where Buy America has precluded our entrance," said Robb Thompson, Dynetek's President and CEO. "In addition, with the potential to work with Luxfer in penetrating two of the largest CNG markets in the world today, due to their worldwide presence and global production capabilities, is a further opportunity Dynetek cannot ignore."

"We recognize Dynetek as a global market leader in providing unique CNG solutions with their light-weight cylinders and systems," said Andy Butcher, general manager of the Luxfer Composite Cylinder Division. "Luxfer is already a leading worldwide provider of composite cylinders for life support, medical and paintball markets, and we believe that this business relationship with Dynetek will enable us to attain a significant share of the market for alternative fuel vehicles using CNG."

Dynetek Industries Ltd. designs, produces and markets one of the lightest and most advanced fuel storage and refueling systems for compressed natural gas, low emission vehicles and compressed hydrogen, zero-emission fuel cell vehicles. Dynetek is recognized around the world for its solutions-of-choice to the alternate fuel vehicle sector, evidenced by strategic relationships with major manufacturers around the globe. Dynetek is listed on the Toronto Stock Exchange, symbol: DNK.

Founded 1898, Luxfer Gas Cylinders is the world's largest manufacturer of composite and aluminum high-pressure cylinders. The company operates six manufacturing facilities in the U.S., England, France and Australia. Luxfer has manufactured more than 40 million cylinders for a wide variety of global markets, including life support, medical, beverage, specialty industrial gases, automotive and scuba.