Mr. Allen Lone reports

AUGUSTA SIGNS AN AGREEMENT TO DEVELOP ADVANCED OPTICAL SENSORS

Augusta Industries Inc.'s wholly owned subsidiary FOX-TEK Canada Inc. has entered into an agreement with FBGS to develop advanced optical sensors. These sensors will not be based on the existing standard strain FBG sensors that FOX-TEK currently uses, but rather the development of sensors that can detect anomalous changes in operating conditions where they are installed. For example, the detection of a certain chemical within its "sniffing" range.

The partnership with FBGS will enable FOX-TEK to remain a competitive leader in the field of optical sensors. While optical strain sensors still have a large use throughout the industry, the same industry is demanding access to sensors that are able to perform more specific detection and/or measurements. This allows for quicker response to any unwanted changes, and in turn, allows the industry to quickly respond to potential threats to the integrity of its operations.

Allen Lone, president and chief executive officer of the corporation, commented, "This partnership is critical for us to maintain our competitive edge and to permit us to grow into new unexploited markets."

FOX-TEK fully expects the existing market demand for advanced, cost-efficient sensors to continue to grow over the years. FOX-TEK will continue to bring these new technologies to both new and existing clients, which is exactly what the industry has come to expect from the company.

We seek Safe Harbor.