ACE/Security Laminates Corporation Announces its First Quarter Results

OTTAWA, ONTARIO, CANADA – March 2, 2005 – ACE/Security Laminates™ Corporation (the “Corporation” or “ACE”) (TSX Venture: ASL) announces its results for its first quarter ended December 31, 2004.

The most significant event of the quarter has been the successful conclusion of a private placement at the end of November 2004 which brought gross proceeds of approximately $7.1 million to ACE. ACE is extremely proud of the confidence demonstrated by hundreds of investors since becoming public in May 2004.

Total revenues recorded for the three month period ended December 31, 2004 amounted to $1,301,692 compared to $1,415,174 for the same period in 2003.

The results for the three month period show a slight reduction on the sales of dealerships and sales of products to authorized dealers which amounts to $775,403 for the period ended December 31, 2004 compared with sales of $827,237 for the three month period ended December 31, 2003. In aligning itself with the new CICA guidelines on revenue recognition, the Corporation had to delay recording of approximately $350,000 in license revenues that would have been recorded as dealership sales under the 2003 prevailing accounting policies. By way of comparison, under the prevailing 2003 accounting policies, the dealership sales for the last quarter would have reached approximately $1,125,000, representing an increase of 36 % in comparison with the same quarter a year earlier. As a consequence, the amount of deferred revenues increased substantially during this quarter to reach $814,973. Management expects that between 25% and 40% of the deferred revenue outstanding balance at the end of any given quarter will be recorded as revenue in the following quarter.

Proudly, through our efforts, Canadian sales showed strong growth from $245,021 in the year ended in 2003 to $400,293 for 2004 representing a 63% increase. Foreign market have also showed strong growth by doubling-up from $144,842 in the year 2003 to $299,509 representing 23% of total revenues for the three month period ended in December 2004. Reduction in sales occurred in the American market as a direct consequence of the cut-backs in marketing efforts in the first half of 2004. Sales from direct contracting activities conducted by the Corporation in the three month period ended December 31, 2004 amounted to $494,716.

ACE’s overall expenses amounted to $1,421,845 for the three month period. ACE has invested in its marketing programs and hired new staff as anticipated in its business plan. In Management’s view, this investment will progressively show its dividends in the beginning of 2005.

Such investment in the sales and marketing infrastructure contributed to the Corporation posting an after tax loss for the quarter. As previously discussed, Management is of the opinion that the added marketing expenses committed since the second half of 2004 must be maintained until a new sales plateau is reached.

January and February 2005 Overview:

Management is pleased that a preliminary review of sales recorded in January and February of 2005, indicate that revenues already exceed by 20% the revenues recorded for the full quarter ended December 31, 2004.

“ACE had more than $5.5 million in cash at the end of December 2004. Never in the past did ACE have these resources to aggressively build its presence in the marketplace. In early April, ACE will be airing an infomercial in the United-States on the educational television series Pulse on America. In tandem with this infomercial ACE has been invited by major broadcast networks such as The Discovery Channel not once but twice to feature its products on its nationwide network. Management is confident that this media exposure will translate into superior brand awareness and sustainable growth.” said the President & CEO, Mr. Peter Fabian.

“Management will put all its efforts in creating value for its shareholders and building a strong profitable business. We are building an exceptional team of professionals that will reap tangible sales for our company in the near future” Mr. Fabian concluded.

Please refer to www.sedar.com to review the Corporation’s financial statements.

ACE/Security Laminates™ Corporation specializes in manufacturing and distributing, through a worldwide network of dealers, safety and security window laminating technology. Since 1999, ACE has established a presence in 40 countries.

ACE/Security Laminates™ Corporation produces a micro thin polyester laminate that, when applied to glass, protects against baseball bats, crowbars, rocks, fire, molotov cocktails, bombs, bullets and natural disasters.

This press release includes certain statements that are forward-looking statements. Any statement in this report that is not a statement of historical data may be deemed to be a forward-looking statement. When used in this report the words “believe”, “intend”, “expect”, “estimate” and other similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:
ACE/Security Laminates Corporation
Mr. Peter Fabian
President and Chief Executive Officer
(613) 237-0000 / ir@usace.com
www.acesecuritylaminates.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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