Mr. Allen Lone reports

AUGUSTA ENTERS INTO AGREEMENT WITH NEW YORK UNIVERSITY

Augusta Industries Inc.'s wholly owned subsidiary, Fox Tek Canada Inc., has entered into an agreement with the Office of Industrial Liaison at New York University (NYU) to explore the development of advanced fibre optical strain sensors for use in the oil and gas and civil infrastructure sectors. The patented fibre optic loop-sensor technology was originally developed by Dr. Nikhil Gupta at NYU's Polytechnic School of Engineering.

The partnership with NYU is part of Fox Tek's continuing commitment to the development of advanced non-intrusive optical sensor technology. The goal of the agreement and the relationship between NYU and Fox Tek is to further develop the technology with the goal of commercializing the technology. Fox Tek believes that the fibre optic loop-sensor technology will have great advantages over the equivalent classical sensors currently used and should prove very successful in key applications.

"We look forward to the possibilities that this opportunity brings. With NYU's strong research capabilities, combined with Fox Tek's strong understanding of its client base, we are very keen on the improvements this will bring to the industry, particularly in our space," commented Allen Lone, president and chief executive officer of the corporation.

"The oil and gas industry presents some of the most challenging conditions, and the partnership with Fox Tek will allow us to test our sensor technology in real-world applications and environments," said Dr. Gupta, associate professor at NYU and inventor of the sensor technology.

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