NEWS RELEASE

Kinectrics Expands Nuclear Parts Supply Capabilities to include Nuclear Pressure Boundary Components

TORONTO, Ontario, July 2, 2004 – David Harris, CEO of Kinectrics Inc. today announced Kinectrics’ commitment to attainment of a TSSA Certificate of Authorization for the supply of nuclear pressure boundary components under CSA N285.0 – 95 / NCA 4000. "We view Technical Safety Standards & Safety Authority (TSSA) recognition though the Nuclear Certificate of Authorization (C of A) as a key step in Kinectrics’ ongoing corporate objective to become a leading supplier of approved nuclear parts in North America", said Harris. "We are firmly committed to building a reliable source of supply for our clients in this critical area", he added.

On June 30 Kinectrics submitted its application to TSSA for the Nuclear C of A. The application included submission of Kinectrics’ Quality Assurance Manual–Nuclear, detailing Kinectrics’ quality compliance process. In further support of TSSA application requirements Kinectrics has commenced the manufacture of its first nuclear component, an artifact to demonstrate quality assurance and manufacturing capabilities to TSSA during the final audit.

The demonstration project managed by Kevin Maynard, a Senior Project Manager with Kinectrics, is expected to last eight weeks with completion anticipated for late August. "We are committed to achieving the TSSA Quality Assurance scheduled program date through this benchmark project", said Harris.

The final review and successful audit by TSSA of the Kinectrics quality process will elevate the company to approved manufacturer status for Nuclear Class 1, 2 & 3 components. The new qualification will underline Kinectrics’ long-standing reputation as a leader in the provision of nuclear parts, services and generation plant capabilities. Kinectrics currently provides customers with established quality programs in ISO 9001-2000 registration, 10 CFR 50 App B Equipment Qualification, and ISO 17025 for Metrology and Analytical Chemistry.

Kinectrics Inc. is a member of the AEA Technology Group, offering clients the advantage of over 90 years of proven expertise and experience, founded on solving the most demanding technical challenges for Ontario Hydro, one of North America’s largest and most reliable utilities. Kinectrics’ team of over 200 scientists and engineers is recognized worldwide for outstanding technical excellence in the energy sector.