Dear Shareholder;

The period from January to June 2001 has been another period of aggressive growth in revenue, cash flow and earnings for Omni-Lite Industries. The highlights of this period include:

1) Record revenue, cash flow and earnings for the second quarter and first half of fiscal 2001. During the second quarter, total revenue increased to $ 591,263 US or approximately $916,458 CDN, an increase of 49% over the same period in 2000. During this time frame, cash flow increased by 71% to $349,267 US or approximately $541,364 CDN. The company reported net income for the period of $269,217 US ($.03US/share) or approximately $417,286 CDN ($.04CDN/share), an increase of 67% over the same period in fiscal 2000.

2) Over the six-month period to June 30, 2001 total revenue increased to $ 1,089,473 US, an increase of 33% over the previous period. Over the same two quarters cash flow increased to $ 568,744 US, an increase of 49% over the same period in 2000. Net income increased to $389,081 or 30% above that achieved in the January to June period in 2000.

3) In the second quarter of fiscal 2001, the company successfully completed the development of a component for SNC Technologies of Canada. The company has received the first production contract for this component and production is scheduled to begin in Q3 of 2001. Of particular importance, the company was successful in enhancing it's Aerospace Division with the initiation of projects with Huck International, Inc. and Monogram Aerospace Fasteners. These products will be utilized in the products of Boeing, Airbus, Bombardier and other large aircraft manufacturers. The successful implementation of these projects will make the Aerospace and Military divisions the fastest growing in the company. The company expects continued growth in revenue and earnings as the Research and Development efforts conducted in this period lead to long term production contracts.

4) In June 2001, the company initiated a normal issuer bid through Sprott Securities in Toronto. A total of 45,800 shares were purchased and subsequently canceled in June 2001.

Enclosed herewith are the financial statements for Omni-Lite Industries Canada Inc. for the fiscal period ending June 30, 2001. Also is attached an expanded Management Discussion and Analysis and the schedules required by Form 51-901F of the British Columbia Securities Commission. .

Yours sincerely,

David F. Grant

President and CEO