Mr. Allen Lone reports

AUGUSTA COMPLETES SUCCESSFUL TRIP TO MIDDLE EAST

Augusta Industries Inc.'s wholly owned subsidiary Fox-Tek Canada Inc. has concluded its sales and marketing trip to the Middle East. Thierry Cherpillod, vice-president of operations, spent a month in various parts of the Middle East including, Saudi Arabia, Oman and the United Arab Emirates, building strategic partnerships and relationships with large multinational corporations identified as having a need for the corporation's sensing systems.

While in Saudi Arabia, two field trial systems were installed and fully commissioned on assets for Saudi Arabia's major oil and gas integrated producer. As this is the first field system for that country, both of these systems are continuous and sending their data back to Fox-Tek's data servers in Ontario. The client has access to the data through a secure Web portal where the information is presented in a visually intuitive fashion. The field testing will be completed by the fourth quarter of this year. With the anticipated success of the two field trials, the corporation believes that its systems and technology will be accepted throughout Saudi Arabia and the Middle East.

In the Sultanate of Oman, the corporation has been working very closely with one of the country's major oil and gas companies for many years. This has led to a decision by the company to initiate a complete field trial program to be started later this year. This will consist of approximately three systems used in actual field conditions and to monitor a number of the company's assets. While in Oman, a number of meetings and presentations were held to find an appropriate local partner. As a result of these meetings, the corporation entered into a non-disclosure agreement with Oman National Oil Services Company LLC of Muscat, Oman, whereby ONOSCO will supply local services including: installation and long-term maintenance. ONOSCO will also take an active part in developing new business opportunities with other local oil and gas companies.

In the UAE, Mr. Cherpillod participated in a full technical review of the corporation's technologies and services with one of the region's largest oil and gas service providers. Prior to the visit, a full technical and commercial proposal had been presented and well received. Fox-Tek will be registering with this company as a provider of advanced non-intrusive technologies on existing applications.

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