Dear Shareholder:

The period from January to December 1998 has been another period of challenge and rapid growth for Omni-Lite. The highlights of this period include: 

1. Net revenue of over C$1,240,000 or over $.12/share for 1998. 

2. Cash flow in excess of C$1,546,000 for 1998, most of which has been reinvested in the expansion of production capacity. 

3. Completion of the acquisition of Formed Fast Inc. of Cerritos, California, which has enhanced Omni-Lite's position in the automotive market. Omni-Lite's products are now being utilized by Daimler-Chrysler, General Motors, Ford and Mazda. Volkswagen is currently testing an assembly which utilizes an Omni-Lite product. 

4. The continued expansion of the manufacturing facility, which includes eight new C$360,000 cold forging systems and an expanded staff of skilled technicians and administrative personnel. This brings the total number of computer controlled forging systems at the Cerritos facility to ten. 

5. The organization of the company into four divisions specializing in the following product areas:

• Automotive
• Military 
• Sports & Recreation
• Commercial

6. The development of 14 new products for incorporation into the company's product line which includes approximately 65 items. 

7. The participation of the Company in a new initiative called Multi-Tek Technologies Inc., a junior capital pool company approved by the Alberta Stock Exchange. This company is actively pursuing an amalgamation with Tactex Controls Inc., the developers of a multi-touch input device for computers, gaming consoles and industrial controllers. Omni-Lite owns 500,000 shares of Multi-Tek Technologies Inc. 

Enclosed herewith are audited financial results for Omni-Lite Industries Canada Inc. for the fiscal year ending December 31, 1998 and comparative statements for the 7 month period ending December 31, 1997 and the year ending May 31st, 1997. These positive results are expected to continue as the company designs and manufactures new components for the automotive, sports and recreation, military and commercial industries. 

Management would like to take this opportunity to thank our customers, suppliers, consultants and shareholders for another very successful year and the opportunity to continue the development of Omn-Lite as one of the world's leading high technology companies. Shareholders are invited to attend Omni-Lite Industries Canada Inc.'s Annual General Meeting to take place June 21st, 1999.

Yours sincerely,

David F. Grant
President