2005 - The year in review

Flexpipe is pleased to report on the following instrumental milestones achieved through the dedication and efforts of its quality workforce in 2005, we have;

• Expanded our pipe sales into the United States markets
• Relocated to a 140,000sqft manufacturing facility
• Added a second production line more than doubling plant capability
• Achieved a record of selling over 1,000,000 meters of pipe
• Received its Partnership in Safety and Certificate of Recognition (COR)
• Engineered and introduced a new lower cost fitting system
• Continued with a flawless track record of zero in-service failures
• Introduced a 150ANSI gas pipe product, expanding our pipe product offering
• In addition to our strong community support, the work we do with the Impact Society, Flexpipe has also “adopted a family” through the Mustard Seed organization.

We at Flexpipe want to express a sincere thanks to all that have helped throughout this active year and we look forward to a prosperous and fulfilling 2006.

January 2005

Flexpipe Systems has developed a bulletin that explains required guidelines for installing Flexpipe RS155-H in winter conditions
Please see F.A.Q.

February 2005

Flexpipe Expands to the US market
Flexpipe Systems Inc. has hired a new sales representative based in Texas. Steve Swanstrom and Flexpipe Systems are looking forward to expanding and continuing its Canadian successes into the US market.

Flexpipe Supports the impactsociety
Flexpipe Systems Inc. has made the commitment to support the Calgary based impact society through its impactsociety association of Business Heroes program. The impact society is an expanding charitable organization that focuses on working with young people. Its mission statement is “To build Confidence, Character, and Integrity in Today’s Youth.” In addition to providing ongoing financial support, Flexpipe’s employees will be involved in mentoring young people to inspire them towards success. For more information on the Impact Society visit impactsociety.com.

March 2005

Flexpipe moves into larger facility
Flexpipe Systems Inc. has moved from a 30,000 ft2 facility to a 140,000 ft2 building that houses both the manufacturing facility as well as the corporate office space. Flexpipe is now located on a rail spur, close to Deerfoot Trail which will allow for greater logistical efficiency as Flexpipe product sales continue to grow.

Flexpipe Systems introduces Weldneck Fittings.
At the request of a few our Flexpipe Systems’ customers, the product line has been expanded to include Weldneck Fittings. A Weldneck Fitting is a fitting designed for sweet service, non corrosive environment where a transition from Flexpipe to steel is required and a buried flange connection is undesirable. Using this type of fitting is beneficial as it is a way of joining Flexpipe to steel without having a bolt-up thereby reducing the possibility of a gas leak due to human error when tightening the bolts.

April 2005

Flexpipe Exceeds the 2004 Sales Budget
When Flexpipe Systems Inc. set the 2004 targets for revenue and the number of meters to be sold in 2004, the company was confident that the market for Flexpipe product would continue to expand. Being able to manage the tremendous growth of the company together with maintaining the company’s excellent emerging reputation was a major focus when setting the sales and revenue goals for 2004. Flexpipe is please to announce that the ambitious targets set for 2004 were exceeded. A few of the company’s outstanding achievements include:

• Revenue increased to $12.4 million, an increase of $9.9 million over 2003 revenue,
• 431 kilometers of Flexpipe was sold, compared to 86 kilometers in 2003,
• Customer bas grew by four fold, selling pipe to 75% of major Canadian producers,
• Introduced 2 inch and 4 inch pipe complementing the company’s existing 3 inch pipe,
• Completed a major production line upgrade to increase capacity and began running the production line 24/7 to meet customer demand.

May and June 2005

Flexpipe attends Alberta and Saskatchewan Oil Shows
Sales Representatives from Flexpipe Systems attended 6th Biennial Peace Region Petroleum Show in Grand Prairie, Alberta, the Oil Show in Weyburn, Saskatchewan and Canada’s largest petroleum show – GO-EXPO held in Calgary, Alberta. Thousands of exhibitors and visitors from all over the world attended these shows which showcased the latest innovations and the most advanced technologies available in the industry.

June 2005

Flexpipe received its US patent
Flexpipe Systems Inc. has been issued a US patent for our “Coupling for composite pipe” (fitting) technology. US patent number 6,902,205 was issued on June 7, 2005.

Flexpipe featured in Oil & Gas Network magazine
Flexpipe Systems Inc. is featured in Oil & Gas Network magazine. This bimonthly energy industry magazine provides the most comprehensive coverage of business and new technology developments. Oil & Gas Network has become the publication of “choice” for those in the energy sector who want to keep ahead of the technology wave.

August 2005

Joining System continues with flawless track record
Flexpipe now has over 600 end fittings and pipe to pipe couplers in service with a faultless record. VP of Engineering Sam Bouey commented “We designed the joining system with this goal in mind, and it’s great to see our customers benefiting from our success.”

September 2005

Flexpipe attends the Wyoming Natural Gas Fair
Sales Representatives from Flexpipe Systems attended 9th annual Wyoming natural Gas Fair in Jackson Hole, Wyoming. Flexpipe’s ‘Fast and Easy’ exhibit was one of hundreds of exhibits showcasing world-class technology in the fields of exploration, production and transportation of oil and natural gas.

Flexpipe receives partnership in safety award and its COR
The Manufacturers Health and Safety Association completed Flexpipe’s safety audit in September. Flexpipe received its Certificate of Recognition and was given one of the highest scores ever earned by a company. The auditor was quoted as saying that for a relatively new company, Flexpipe Systems safety program is functioning at a remarkable level.

October 2005

Flexpipe launches a new low pressure pipe into the marketplace
Flexpipe has added a new lower pressure pipe series to its product line. The new 150 ANSI pipe can be installed in gas applications for up to 300 psi. The 150 ANSI product line is targeted to service the low pressure gas market and is currently available in 3” and 4” diameters.

Flexpipe introduces new, cost effective crimp fittings
Flexpipe introduces a new line of crimp fittings. Pipe-to-pipe coupling fitting and end fittings will provide a significant cost saving to our customers. The new fittings will be offered with coatings designed for specific applications. Uncoated fittings are designed for non-corrosive environments, thermo-plastic coated fitting designed for moderately corrosive applications and electroless nickel coated fittings designed for CO2 rich environments, erosive or severely corrosive applications.

December 2005

Flexpipe Systems strengthens its Sales and Marketing Team with the addition of a new Vice President of Sales & Marketing
Flexpipe is pleased to announce the appointment of Mr. K. Dean Zipse as Vice President, Sales & Marketing. Dean joins Flexpipe with 20 years of Energy industry related experience, having served most recently as Sales Manager (Canada & Europe) at Tesco Corporation. Dean’s background and skills will be instrumental in helping lead Flexpipe through its next exciting phase of growth.