Shareholder Update

SAN CLEMENTE, Calif.--(BUSINESS WIRE)--RCAI (OTCBB:RCAA), a world leader in environmentally-friendly industrial release agents, is providing the following update to its shareholders on recent business developments.

Mining

• The Company’s patented Alderox^® ASA-12^® product is currently in use as a standard operating procedure at one of the nation’s largest underground mines. The product is performing very well and the customer is continuing to provide references to other mines interested in using the Alderox^® product.
• Alderox^® ASA-12^® is in use at one of Mexico’s newest and largest underground copper mines as a standard operating procedure on their underground loading pockets and skips. The mine plans to expand its use of the Alderox^® product to truck beds, chutes and within the mill itself over the course of the next few months.
• New on-site demonstrations are currently underway at mines in British Columbia, Saskatchewan, North Dakota, Mexico and Chile.
• Upcoming demonstrations are being scheduled at additional mines in the U.S., Australia, Peru, Mexico, Canada and Chile.
• In addition to the automated spray system used by underground haul trucks at the U.S. mine referenced above, the Company has developed an automated application system for the 240 ton haul trucks typically used in open pit mining operations. The system is scheduled for completion within the next 60 days and will go into operation at a customer’s mine immediately thereafter.
• RCAI is working with Applied Mexico, S.A. de C.V. on the completion of a distributorship agreement for the mining industry in Mexico. Applied Mexico is a major supplier of equipment to Mexico’s mining industry.
• RCAI is working with Bearing & Transmission, a subsidiary of Applied Industrial Technologies, on a distributorship agreement for the mining industry in certain areas of Canada.
• Management is in advanced discussions with two large equipment manufacturers to the global mining industry on potential distributorships and other possible business arrangements.

Asphalt Industry

• The Company’s asphalt release sales have increased by greater than 195% over the same period last year and are continuing to grow rapidly.
• The Company has 8 robotic spray applications in use at customers’ jobsites and 12 additional spray systems on order.
• The Alderox® ASA-12® formulation has proven to be the only release agent effective in reducing the amount of build-up in asphalt drum mixers. Use of the Alderox® product has been shown to double the operational time of the mixers and cut cleaning/maintenance time roughly in half. RCAI is working with customers representing 14 plants for installation of Alderox® automated spray systems on drum mixers in the southeastern states alone. The Company estimates the number of drum mixers that can benefit from the use of Alderox® at approximately 700 in the United States.
• In addition to the work brought in by Applied Industrial Technologies, the Company has increased in-house asphalt industry customer base from 14 in the summer of 2006 to 23 in August of 2007.
• Management has set a goal of securing a total of at least 40 regular asphalt customers by 2007 calendar year end and is well positioned to achieve this goal.
• The Company has placed a strong emphasis on in-house generated sales over the past year and assisting in the sales activities of Applied Industrial Technologies. The asphalt market is continuing to grow as the Alderox® product becomes well known in the industry.

About Alderox

RCAI’s Alderox^® works by forming a durable and slippery barrier on surfaces that prevents asphalt and sticky ores from adhering and reducing usable volume during transportation or fouling machinery and chutes in mines. Its renewable aspect and bio-degradability makes its use in heavy industry benign for the environment.

About RCAI

RCAI is an industrial supply company providing products and services throughout North America and worldwide. RCAI specializes in the development, manufacturing, sales and distribution of environmentally friendly lubricants, industrial release agents and form oils. The leading soy-based brand Alderox^® is EcoLogo certified by the Canadian government. RCAI’s website is at www.rca-inc.com.

Forward-looking statement

Any statements made in this press release which are not historical facts contain certain forward-looking statements, as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results of the specific items described in this release, and the company's operations generally, to differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements, and we disclaim any obligation to update information contained in any forward-looking statement.

Certain of the statements in the news release are forward-looking. Such statements relating to the Company's future business and the success of its products are based on Management's beliefs and opinions and also on assumptions made by and information currently available to the company. Such statements are subject to certain risks, uncertainties and the correctness of assumptions, and should be read with this cautionary statement in mind.