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Landstar Taking Over Former Ohio Waste to Energy Buildings, Equipment

Phoenix, AZ - LandStar Inc. signed a memorandum of understanding with the Solid Waste Authority of Central Ohio (SWACO) for the lease of property and the purchase of buildings and equipment consisting of the retired Waste to Energy in Columbus, Ohio.

The plant has been vacant since late 1994, when it was closed due to financial and environmental concerns. The company will not reactivate the Waste to Energy equipment and if feasible, intends to dismantle the smoke stacks. LandStar will pay SWACO $6-million and will also pay $5 per ton on tires delivered to the facility. The company is dedicated to the development of a new rubber recycling industry based on unique devulcanization technology held under exclusive North American license by the company. This facility will be the first major processing facility for production of devulcanized rubber but will initially focus on increasing the Company's capacity to produce fine powder vulcanized rubber.

LandStar has developed an array of new materials using devulcanized rubber, each with multi-billion dollar markets. In order to enter these large markets the company is establishing a base of regionally placed facilities for the production of crumb rubber from post-consumer (primarily tires) and post- industrial (factory scrap) waste vulcanized rubber. Crumb rubber is the feedstock material for producing devulcanized rubber, but crumb rubber also has many large, although lower priced, markets without devulcanization. The current major crumb rubber markets are: 1) asphalt rubber, 2) molded goods, 3) sports surfaces, and 4) tire manufacture (a compatible extender, not virgin polymer substitute).

The rubber recycling industry has been dysfunctional, populated by small operators, typically producing one type of product, lacking effective processing equipment, often lacking sophisticated management and marketing, and lacking adequate financial return on investment. The company acquired control of PolyTek Rubber and Recycling, Inc., the largest crumb rubber producer in the world, in early 2001 and has spent twenty months restructuring the business. LandStar has recently completed a financial restructuring and is positioned to accelerate the current operations of this subsidiary into profitability in early 2003. However, significant demand for vulcanized crumb rubber exists that the Company does not have the capacity to service. In addition, new demand resulting from the devulcanization operations will rapidly surpass production capacity for crumb rubber feedstock.

Based on extensive research and experience, the company has developed a model for a new generation of 'Rubber Recovery Refineries' designed to accept a wide variety of post-consumer and post-industrial waste rubber. Each facility will process whole tires, tire buffings, all components of factory scrap including partially cured waste, waste fiber and steel. This capability will allow rubber product manufacturers to outsource their waste and scrap operations and reduce or eliminate the costly and environmentally unfriendly flow of waste rubber to landfills.