Dear Shareholder:

The period from January to December 2000 has been another period of aggressive Research and Development for Omni-Lite Industries. The highlights of this period include:

1. The final development and initial production of a component utilized by the US Military and NATO. The company has received a contract worth approximately $1,635,000 Cdn for this program. As part of this contract, the company has granted an option to the customer for the procurement of product worth an additional $1,900,000 Cdn.

2. Initial contracts for the Research and Development of components for SNC TECHNOLOGIES INC. and STALCOP L.P. The SNC program is focused on developing a new component for the Canadian Military while the Stalcop project is developing a new component for the automotive sector.

3. The purchase of a new facility in Cerritos, California for approximately $3,100,000 Cdn. This 31,970 sq. ft. facility will markedly enhance the company's efficiency. The company anticipates moving into this facility in Q2 of 2002.

4. Cash flow for the period was $1,230,277 Cdn and net income was $ 849,943 Cdn or $.09 Cdn/share. Revenue for the period was $2,792,737 Cdn. The reduction in revenue from 1999 was due to large shipments that could not be completed in fiscal 2000. These shipments were actually booked in Q1 and Q2 of 2001, positively impacting the results in these periods.

5. The purchase of an additional 500,000 shares of Tactex Controls Inc. This investment brings the number of shares of Tactex owned by Omni-Lite to 1,000,000.

6. The corporation commenced discussions toward purchasing a larger cold forging system. This equipment, with a retail price of over $806,000 Cdn, was purchased in February 2001 for approximately $434,000 Cdn.

Enclosed herewith are the consolidated audited financial statements for Omni-Lite Industries Canada Inc. for the fiscal year ending December 31, 2000 and comparative statements for the 12 month period ending December 31, 1999. The company expects significant growth in revenue and earnings as the Research and Development efforts conducted in 2000 lead to long term production contracts.

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 Omni-Lite as one of the world's leading high technology companies. Shareholders are invited to attend Omni-Lite Industries Canada Inc's annual meeting to be held at the Bow Valley Convention Center on June 22, 2001 at 11:00AM MST.

Yours sincerely,

David F. Grant

President & CEO