Larry Oakley's Opinion

This column is strictly my personal opinion regarding one or more of the Special Situations I follow. I will be replacing this column each time one of these companies has reached what I feel is an important milestone. Many of you told me the Web has lots of facts, but is almost totally lacking in opinion. You asked me to give my personal interpretation of what is happening. That's what this column does.

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Date Posted: 08/17/06

Conforce International, Inc. (Pink Sheets: CFRI)

I'm just beginning to investigate this situation. I like the fact that it has a solid base operation as well as a new product development that appears to have a very large market.

What CFRI Does

CFRI's main business is container handling & storage through its multi-acre 5,000+ container capacity terminal facility in Ontario. Its current customers include some of the world's largest international steamship lines including P&O NedLloyd, Zim Integrated Shipping, & China Shipping Container Lines.

It is also engaged in the R&D of a proprietary composite product designed to change the way shipping containers are made, worldwide. It developed a material that simulates the characteristics of wood while testing lighter, stronger, & more cost effective.

CFRI's New Product

Called "EKO-FLOR," the environmentally friendly product recently completed its Phase One final internal product formulation testing. EKO-FLOR is a composite container flooring system. It successfully passed all key strength & resistance tests, & it is now going into prototype production for the commencement of final internal profile testing.

The tests conducted on the EKO-FLOR formulation were designed to determine the durability of the composite under controlled conditions. They took into consideration load bearing strength, dimensional stability, anti-slip properties, resistance, impact, compression, tension, shear, as well as the formulation's resistance to water, decay, termite/insect attack, & high fire resistance relative to wood.

CFRI's development personnel confirmed that the EKO-FLOR composite material is expected to meet the Institute of International Container Lessors (IICL) Floorboard Strength Test, & that the overall qualities of the product should be considered superior to wood.

CFRI is now providing complete design specifications for the manufacture of dies in order to produce precise prototypes in connection with its latest formulation & design profile. Once the prototypes have been completed, the product will enter into Phase Two final internal profile testing which will confirm the results of Phase One clinical formulation testing under infrastructure conditions. This process will be followed immediately by the Phase Three testing, the final phase in the process, which is described as external prototype testing by an independent third party organization for industry certification. The testing process, in its entirety, is expected to be complete within a few weeks, at which time the company anticipates that it will be in a position to accept industry orders for both new production & retrofit containers.

A chart describing the complete product testing process can be found at www.conforce1.com by pressing the EKO-FLOR menu button.

CFRI signed an exclusive supply agreement with manufacturing giant Royal Group Technologies for the production of EKO-FLOR in strategically located facilities around the world.

CFRI's Financial Position

Annual revenues from CRFI's Container Terminal division for the period ended 3/31/2006 increased significantly over last year's same period sales. CRFI's annual report states that revenues in 2005 increased by 169% to $1,595,295 from $592,778 in 2004, while EBITDA increased by 52% to $204,860. The company had a small loss for the recent quarter, due to the R&D investment it has made in the EKO-FLOR development.

Conforce President & CEO Marino Kulas said: "I am very pleased with the company's consistent performance over the last twelve months. While the depot operation provides a solid foundation for the company, we believe that truly significant growth & shareholder value will be realized from our highly anticipated EKO-FLOR product. We are confident that the product will pass all certification testing & that once introduced to the market, will affect positive change in the global container industry."

CFRI closed yesterday (8/16/2006) at $0.13. Call Daniel at Gibraltan Financial @ 407-830-9777 -- www.conforce1.com.


My comments in this column are strictly my personal opinion. At times, I will include forward-looking information as that term is defined in the Private Security Reform Act of 1995. Such information & the related company are subject to many risks & uncertainties. There can be no assurance that actual results, business conditions, business developments, losses & contingencies, local & foreign factors, & other matters will not differ materially from those suggested in any of my forward-looking statements. Such differences are the result of all sorts of factors (some examples: market conditions, competition, advances in technology, acquisitions, mergers, potential litigation, personnel changes, market changes, capital availability, etc., etc.).

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