<PAGE>


[ROYAL GROUP TECHNOLOGIES LOGO]


                              THIRD QUARTER REPORT
                               ENDED JUNE 30, 2004

MESSAGE TO SHAREHOLDERS

Royal's third quarter results reflect continuing progress with the turnaround of
the Group. We generated sales growth and improved margins, as well as free cash
flow that enabled further debt reduction.

FOCUSING ON PRODUCT MIX

Royal's improving margins can be attributed to the on-going implementation of a
series of strategies, including improvement of product mix. As seen over the
past three quarters, we have generated double-digit sales growth in Custom
Profiles and Exterior Claddings products. This achievement is helping us to
improve profitability, as these are our higher margin product lines.

Custom Profiles sales growth is reflective of a strong market, our efforts over
the past year to better connect with customers, as well as the introduction of a
series of new products to our window fabricator customer base. For example, we
now have a number of window fabricator customers using Royal Mouldings' cellular
trim as accessory packages for their windows. As a result of Royal's broad and
expanding product offering, our window fabricators are able to sell more than
just a window.

Exterior Claddings sales growth is reflective of our continued penetration of
the U.S. siding market with an expanding line of innovative siding, roofing and
accessory products, including our Dura Slate(TM) roof tiles which have been well
received in the marketplace. Consistent with our ever-increasing U.S. market
penetration, we are presently expanding our siding manufacturing facility in
Tennessee.

Outdoor Products growth reflects our progress with increasing sales of sheds and
fencing, decking and railing products, which was helped by our expanded product
line and promotional initiatives. The growth of these product lines in the third
quarter is muted however, due to reduced sales of patio furniture. We have
exited some patio furniture business where margins were not sufficient.


<PAGE>


We have also improved product mix in our other product groups. In the pipe and
fittings business for example, we continue to increase Royal's share of the
North American electrical, plumbing and sewer fittings markets. Fittings are
generally higher margin products than extruded pipe. Our injection molded
fittings operation in Michigan continues with its successful roll out of new
fitting products.


CHALLENGING RAW MATERIAL COSTS

We continue to be challenged by high raw material costs. PVC resin prices at
June 30th were up 14% from March 31st. Chemical additive prices, including
titanium dioxide, lubricants and stabilizers, have also escalated. We have
implemented certain sales price increases since June 30 to help mollify the
impact of higher raw material costs, and intend to pursue material formulation
improvements and production efficiencies to offset the balance of the cost
increases.

The rate of increase of raw material costs has lessened recently with industry
forecasts indicating prices should stabilize in the fall, ease in November and
December, and increase again early next year. We will continue to pursue
opportunities to offset cost increases through sales pricing actions and product
mix improvements, and improvements to material formulations and production
processes.

Curtailment of capital expenditures continues to be a focus for us. We are
improving utilization rates through plant consolidations and better use of
available machinery within the Group.


CONTINUING PROGRESS WITH TURNAROUND

We are successfully implementing sales and marketing strategies to secure
increasing volumes of higher margin product lines. We are making progress with
capacity utilization and the improvement of businesses that have been a burden
on overall profitability. High raw materials costs will continue to be a
challenge, but we will continue to strive to mollify their impact on
profitability through ongoing material and production improvements. Our
turnaround efforts are focused on increasing our return on invested capital and
free cash flow, which we believe will drive shareholder value.

We wish to thank our shareholders, employees, customers and suppliers for their
support as we implement strategies to realize Royal Group's potential.



/s/ Douglas Dunsmuir

Douglas Dunsmuir
President and Chief Executive Officer
August 26, 2004


<PAGE>

CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars)

<TABLE>
<CAPTION>
                                                  JUNE 30/04    SEPT. 30/03     JUNE 30/03
                                                 -----------    -----------    -----------
                                                 (UNAUDITED)     (AUDITED)     (UNAUDITED)
<S>                                              <C>            <C>            <C>

ASSETS

Current assets:
     Cash                                        $  118,294     $       --     $       --
     Accounts receivable                            382,160        342,601        378,736
     Inventories                                    435,400        401,619        502,623
     Prepaid expenses                                19,283         20,498         20,351
                                                 ----------     ----------     ----------
                                                    955,137        764,718        901,710

Future income tax assets (note 5)                    21,200         26,600         26,650
Property, plant and equipment                     1,424,410      1,482,723      1,542,935
Goodwill and other assets                           265,510        256,413        261,959
                                                 ----------     ----------     ----------
                                                 $2,666,257     $2,530,454     $2,733,254
                                                 ==========     ==========     ==========


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Bank indebtedness (note 6)                  $  424,312     $  355,080     $  468,260
     Accounts payable and accrued liabilities       287,553        258,592        237,251
     Term debt due within one year                   20,296         21,266         24,830
                                                 ----------     ----------     ----------
                                                    732,161        634,938        730,341

Term debt (note 6)                                  343,695        383,332        399,234
Future income tax liabilities (note 5)              150,700        131,169        141,007
Minority interest                                    15,260         15,603         14,790

Shareholders' equity:
     Capital stock                                  633,754        632,711        632,711
     Contributed surplus                                136             74             --
     Retained earnings                              890,559        841,930        919,954
     Currency translation adjustments              (100,008)      (109,303)      (104,783)
                                                 ----------     ----------     ----------
                                                  1,424,441      1,365,412      1,447,882
                                                 ----------     ----------     ----------
                                                 $2,666,257     $2,530,454     $2,733,254
                                                 ==========     ==========     ==========
</TABLE>

See accompanying notes to consolidated financial statements.


On behalf of the Board:


/s/ Douglas Dunsmuir                            /s/ Ron Goegan

Douglas Dunsmuir                                Ron Goegan
Director, President                             Director, Senior V.P.
and Chief Executive Officer                     and Chief Financial Officer





<PAGE>


CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of Canadian dollars, except per share amounts)




<TABLE>
<CAPTION>
                                            3 MONTHS       3 MONTHS         9 MONTHS       9 MONTHS
                                              ENDED         ENDED            ENDED          ENDED
                                           JUNE 30/04     JUNE 30/03       JUNE 30/04     JUNE 30/03
                                          -----------    -----------      -----------    -----------
                                          (UNAUDITED)    (UNAUDITED)      (UNAUDITED)    (UNAUDITED)
<S>                                       <C>            <C>              <C>            <C>

Net sales                                   $554,673       $525,024       $1,390,160     $1,358,619

Cost of sales and operating expenses         461,239        484,725        1,175,158      1,202,883
                                            --------       --------       ----------     ----------
Earnings before the undernoted                93,434         40,299          215,002        155,736

Amortization charges                          33,631         32,164           97,316         96,437
Interest and financing charges                 9,687         12,605           31,924         38,249
                                            --------       --------       ----------     ----------

Earnings (loss) before income taxes and
  minority interest                           50,116         (4,470)          85,762         21,050

Income tax expense (recovery) (note 5)        14,305         (2,752)          37,471          1,350
                                            --------       --------       ----------     ----------
Earnings (loss) before minority interest      35,811         (1,718)          48,291         19,700

Minority interest                               (323)            73              338            113
                                            --------       --------       ----------     ----------
Net earnings (loss)                         $ 35,488       $ (1,645)      $   48,629     $   19,813
                                            ========       ========       ==========     ==========
Earnings (loss) per share (note 4):
     Basic                                  $   0.38       $  (0.02)      $     0.52     $     0.21
     Diluted                                $   0.38       $  (0.02)      $     0.52     $     0.21
                                            ========       ========       ==========     ==========
     </TABLE>

See accompanying notes to consolidated financial statements.





CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(in thousands of Canadian dollars)

<TABLE>
<CAPTION>
                                            3 MONTHS       3 MONTHS      9 MONTHS       9 MONTHS
                                              ENDED          ENDED         ENDED          ENDED
                                           JUNE 30/04     JUNE 30/03     JUNE 30/04     JUNE 30/03
                                          -----------    -----------    -----------    -----------
                                          (UNAUDITED)    (UNAUDITED)    (UNAUDITED)    (UNAUDITED)
<S>                                       <C>            <C>            <C>            <C>

Retained earnings, beginning of period      $855,071       $921,599       $841,930       $900,141

Net earnings (loss)                           35,488         (1,645)        48,629         19,813
                                            --------       --------       --------       --------
Retained earnings, end of period            $890,559       $919,954       $890,559       $919,954
                                            ========       ========       ========       ========
</TABLE>

See accompanying notes to consolidated financial statements.





<PAGE>




CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of Canadian dollars)


<TABLE>
<CAPTION>
                                                            3 MONTHS       3 MONTHS       9 MONTHS      9 MONTHS
                                                              ENDED          ENDED          ENDED         ENDED
                                                           JUNE 30/04     JUNE 30/03     JUNE 30/04    JUNE 30/03
                                                          -----------    -----------    -----------    -----------
                                                          (UNAUDITED)    (UNAUDITED)    (UNAUDITED)    (UNAUDITED)
                                                                           (NOTE 2)                      (NOTE 2)
<S>                                                       <C>            <C>           <C>             <C>
Cash provided by (used in):

Operating activities:
     Earnings (loss) before minority interest              $  35,811      $  (1,718)     $  48,291      $  19,700
     Items not affecting cash                                 39,763          5,797        131,540         66,721
     Change in non-cash working capital                      (15,139)        64,164        (42,509)        (7,804)
                                                           ---------      ---------      ---------      ---------
                                                              60,435         68,243        137,322         78,617

Financing activities:
     (Decrease) increase in termed bank debt (note 6)         (5,688)            --        424,312             --
     Repayment of term debt (note 6)                         (10,079)          (243)       (37,024)       (79,994)
     Proceeds from issuance of shares under stock
     option plan                                                 145             --          1,043             14
                                                           ---------      ---------      ---------      ---------
                                                             (15,622)          (243)       388,331        (79,980)

Investing activities:
     Acquisition of property, plant and equipment            (19,617)       (20,865)       (57,582)       (71,374)
     Acquisition of non-cash net assets of businesses             --             --             --         (4,134)
     Change in investments                                       (63)            --         (3,577)            --
     Change in minority interest                                  --             --             --         (3,964)
     Proceeds from sale of non-strategic assets                3,416             --          9,707             --
     Change in other assets                                     (532)           (60)          (601)        (2,167)
                                                           ---------      ---------      ---------      ---------
                                                             (16,796)       (20,925)       (52,053)       (81,639)

Effect of foreign exchange rate changes on cash                  399           (824)          (226)        (1,473)
                                                           ---------      ---------      ---------      ---------
Increase (decrease) in cash during the period                 28,416         46,251        473,374        (84,475)

Cash (bank indebtedness), beginning of period                 89,878       (514,511)      (355,080)      (383,785)
                                                           ---------      ---------      ---------      ---------
Cash (bank indebtedness), end of period                    $ 118,294      $(468,260)     $ 118,294      $(468,260)
                                                           =========      =========      =========      =========
</TABLE>

See accompanying notes to consolidated financial statements.



<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands of Canadian dollars)


1. CONSOLIDATED FINANCIAL STATEMENTS

These consolidated financial statements have been prepared by management in
accordance with Canadian generally accepted accounting principles, and include
the accounts of Royal Group Technologies Limited ("the Group"), its subsidiaries
and its proportionate share of its joint ventures.

     In the opinion of management, the unaudited interim consolidated financial
statements reflect all adjustments, which consist only of normal and recurring
adjustments, necessary to present fairly the financial position at June 30, 2004
and the results of operations and cash flows for the three month and nine month
periods ended June 30, 2004.

     The Group operates predominantly in the seasonal North American renovation
and new construction markets. As such, sales, net earnings and cash flow have
historically been significantly different on a by-quarter basis as compared to
an annualized amount or rate.


2. CHANGE IN ACCOUNTING POLICIES

The Group's accounting principles remain unchanged from the most recent fiscal
year ended September 30, 2003. For details, please refer to note 1 on page 30 of
the Group's 2003 Annual Report.

     Certain figures for the three months and nine months ended June 30, 2003
have been reclassified to conform with the financial statement presentation
adopted in fiscal 2004.


3. SEGMENT REPORTING DATA

<TABLE>
<CAPTION>
                                               PRODUCTS                      SUPPORT
                                               SEGMENT      ELIMINATIONS     SEGMENT      ELIMINATIONS    CONSOLIDATED
                                              ----------    ------------    ----------    ------------    ------------
<S>                                           <C>           <C>             <C>           <C>             <C>
For the 3 months ended June 30, 2004
Net sales                                     $  551,716     $ (13,554)     $  177,022     $(160,511)      $  554,673
Operating margin                                  58,721                        34,713                         93,434
Amortization charges                              23,733                         9,898                         33,631
Acquisition of property, plant and
  equipment and goodwill                          16,219                         3,398                         19,617
Property, plant and equipment                    706,968                       717,442                      1,424,410
Goodwill                                         182,408                        35,636                        218,044
Total assets                                   1,691,168                       975,089                      2,666,257

For the 9 months ended June 30, 2004
Net sales                                     $1,363,946     $ (31,044)     $  479,365     $(422,107)      $1,390,160
Operating margin                                 120,949                        94,053                        215,002
Amortization charges                              69,506                        27,810                         97,316
Acquisition of property, plant and
  equipment and goodwill                          48,991                         8,591                         57,582
Property, plant and equipment                    706,968                       717,442                      1,424,410
Goodwill                                         182,408                        35,636                        218,044
Total assets                                   1,691,168                       975,089                      2,666,257

For the 3 months ended June 30, 2003
Net sales                                     $  523,181     $  (4,658)     $  159,550     $(153,049)      $  525,024
Operating margin                                   6,819                        33,480                         40,299
Amortization charges                              22,833                         9,331                         32,164
Acquisition of property, plant and
  equipment and goodwill                          16,162                         4,703                         20,865
Property, plant and equipment                    770,185                       772,750                      1,542,935
Goodwill                                         182,869                        35,668                        218,537
Total assets                                   1,707,144                     1,026,110                      2,733,254

For the 9 months ended June 30, 2003
Net sales                                     $1,331,242     $ (18,651)     $  441,504     $(395,476)      $1,358,619
Operating margin                                  59,173                        96,563                        155,736
Amortization charges                              69,411                        27,026                         96,437
Acquisition of property, plant and
  equipment and goodwill                          47,464                        23,910                         71,374
Property, plant and equipment                    770,185                       772,750                      1,542,935
Goodwill                                         182,869                        35,668                        218,537
Total assets                                   1,707,144                     1,026,110                      2,733,254
</TABLE>


Net sales by geographic region for the 3 months ended June 30, 2004 were 59%
(2003 - 57%) to the US, 34% (2003 - 37%) to Canada and 7% (2003 - 6%) to foreign
markets and for the 9 months ended June 30, 2004 were 59% (2003 - 61%) to the
US, 33% (2003 - 32%) to Canada and 8% (2003 - 7%) to foreign markets.
<PAGE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands of Canadian dollars)


4. EARNINGS (LOSS) PER SHARE

Basic and diluted earnings (loss) per share have been calculated using the
weighted average and maximum dilutive number of shares outstanding for the
three month period of 93,353,670 (2003 - 93,220,617) and 93,353,670 (2003 -
93,248,648) and for the nine month period of 93,334,281 (2003 - 93,219,717) and
93,334,281 (2003 - 93,323,219) respectively. As at June 30, 2004, the Group had
outstanding 15,935,444 multiple voting shares, 77,420,726 subordinate voting
shares, and 7,877,414 options to acquire subordinate voting shares under the
Group's employee stock option plan.


5. INCOME TAXES

In November 2003, the Ontario government repealed the previously enacted
provincial income tax rate reductions. In accordance with the Group's accounting
policy for income taxes, future income tax assets and liabilities were revalued
utilizing the substantively enacted rate of 34.12%. The revaluation resulted in
a $13,000 charge to income tax expense in the first quarter of fiscal 2004.


6. BANK INDEBTEDNESS AND TERM DEBT

In October 2003, the Group converted its debt drawn under the unsecured bank
credit facility to a non-revolving, non-amortizing term loan in the amount of
$500,000. The costs of borrowings under the term-out remain unchanged from the
previous amounts drawn on the revolving facility. During the second and third
quarter, the Group prepaid its non-revolving, non-amortizing bank credit
facility by a total of $76,000, such that $424,000 is repayable on April 28,
2005. Additionally, the Group purchased for cancellation during the current
fiscal year a total of $33,500 of its medium term notes outstanding, such that
$116,500 remains payable on April 13, 2010. In the third quarter, the Group also
retired $3,000 of its long term debt outstanding.


7. CHANGE IN YEAR END

The Group has changed its fiscal year end from September 30 to December 31. The
transition year shall consist of a fifteen month period, commencing October 1,
2003 and concluding on December 31, 2004.


8. RELATED PARTY TRANSACTIONS

During the quarter, related party transactions to companies related to the
controlling shareholder totaled $216, bringing the year to date amount to $712.
The sales transactions were in the normal course of the Group's business
relating to products typically manufactured by it and sold at prices and terms
consistent with those to third party customers.


9. SUBSEQUENT EVENTS

During the current fiscal year, the Group established a Restricted Stock Unit
Plan ("RSUP") for the purposes of offering an exchange of options granted under
the Group's Long-Term Incentive Plan (formerly the Group's 1994 Stock Option
Plan), as described in notes 1(i) and 10 of the most recent annual audited
financial statements for the year ended September 30, 2003. On July 2, 2004,
318,304 restricted stock units ("RSUs") were granted to certain employees of the
Group in exchange for 3,536,809 options granted under the Group's Long-Term
Incentive Plan. The grant document entitles the participant to receive one
subordinate voting share for each RSU. It is the Group's intention to provide
the employee the option of a cash settlement on the entitlement date. The cash
payment would be based upon the closing price of the Group's subordinate voting
shares on the last business day preceding the entitlement date, being December
31, 2004. RSUs will be valued at their fair market value on the grant date and
compensation expense related to the RSUs will be recognized evenly over the
vesting period based on the expected total compensation to be paid out at the
entitlement date. Based on the market price on the grant date of the RSUs, it is
expected that compensation expense of $1,910 will be recorded in each of the
next two quarters.

     During the current fiscal year, the Group also established a Senior
Management Incentive Plan ("SMIP"). This plan provides for the issuance of a
maximum of 1,400,000 restricted stock units ("RSUs"). Each RSU entitles the
participant to receive one subordinate voting share or an equivalent cash
payment on the entitlement date provided the vesting criteria are satisfied,
including performance-based criteria established in respect of the participant's
grant of RSUs. It is the Group's intention to settle in shares on the
entitlement date. On July 2, 2004, 1,395,000 RSUs were granted to certain senior
employees and members of senior management of the Group. RSUs will be valued at
their fair market value on the grant date and compensation expense related to
the RSUs will be recognized evenly over the vesting period based on the total
compensation to be paid out at the entitlement date. The counterpart will be
recorded as contributed surplus. Based on the market price on the grant date of
these RSUs, it is expected that compensation expense of $1,674 will be recorded
in each of the next 10 quarters.

     Subsequent to the quarter ended June 30, 2004, the Group incurred certain
severance and retirement costs totaling approximately $3,000, principally in
respect of certain of the executive officers named in the Group's January 23,
2004 Management Proxy Circular. The retirement arrangements with Mr. Vic De Zen
are not yet concluded. Mr. De Zen resigned as the Co-Chief Executive Officer of
the Group in December 2003. The Group does not presently have any employment
contracts or compensatory plans or arrangements for its other senior executives
in connection with resignations, retirements, terminations of employment or a
change in control of the Group.

<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS

QUARTER ENDED JUNE 30, 2004, AS COMPARED TO THE QUARTER ENDED JUNE 30, 2003

OVERVIEW

Royal Group Technologies Limited ("the Group") is substantially engaged in the
manufacture and distribution of polymer-based home improvement, consumer and
construction products for sale primarily in the North American renovation,
remodeling and new construction industries. The Group is vertically integrated
and strives to be a low cost producer within its industry.

     The Group operates predominantly in the seasonal North American renovation
and new construction markets. As such, sales, net earnings and cash flow have
historically been significantly different on a by-quarter basis as compared to
an annualized amount or rate.


NON-GAAP FINANCIAL MEASURES

For the purposes of the following discussion the terms "EBITDA" (earnings before
interest, tax, depreciation, amortization and minority interest) and "operating
margin" (being earnings before the undernoted as reported within the body of our
financial statements) are used interchangeably. EBITDA is not a recognized
measure under Canadian generally accepted accounting principles (GAAP).

     Management believes that in addition to net earnings, EBITDA is a useful
supplementary measure as it provides investors with an indication of cash
available for distribution prior to debt service, capital expenditures, income
taxes and minority interest. Investors should be cautioned, however, that EBITDA
should not be construed as an alternative to (i) net earnings determined in
accordance with GAAP as an indicator of the Group's performance or (ii) cash
flow from operating, investing and financing activities as a measure of
liquidity and cash flow. The Group's method of calculating EBITDA may differ
from other companies and, accordingly, the Group's EBITDA may not be comparable
to measures used by other companies. Free cash flow (earnings before minority
interest adjusted for items not affecting cash, changes in non-cash working
capital items, less acquisition of property, plant and equipment and change in
investments) is not a recognized measure under Canadian GAAP. It is therefore
unlikely to be comparable to similar measures presented by other issuers.
Management believes free cash flow to be an important indicator of the financial
strength and performance of our business because it shows how much cash is
available to repay debt and to reinvest in the Group. Net funded debt to total
capitalization ratio is not a recognized measure under Canadian GAAP. The
following chart provides a calculation of free cash flow and net funded debt to
total capitalization:


<TABLE>
<CAPTION>
                                                 3 MONTHS       3 MONTHS       9 MONTHS       9 MONTHS
                                                   ENDED          ENDED          ENDED          ENDED
(IN THOUSANDS OF CANADIAN DOLLARS)              JUNE 30/04     JUNE 30/03     JUNE 30/04     JUNE 30/03
----------------------------------              ----------     ----------     ----------     ----------
<S>                                             <C>            <C>            <C>            <C>

Earnings (loss) before minority interest         $  35,811      $  (1,718)     $  48,291      $  19,700
Items not affecting cash                            39,763          5,797        131,540         66,721
Change in non-cash working capital                 (15,139)        64,164        (42,509)        (7,804)
                                                 ---------      ---------      ---------      ---------
Cash flow from operating activities                 60,435         68,243        137,322         78,617
                                                 ---------      ---------      ---------      ---------
Acquisition of property, plant and equipment       (19,617)       (20,865)       (57,582)       (71,374)
Change in investments                                  (63)            --         (3,577)            --
                                                 ---------      ---------      ---------      ---------
Free cash flow                                   $  40,755      $  47,378      $  76,163      $   7,243
                                                 =========      =========      =========      =========
</TABLE>




<TABLE>
<CAPTION>
(IN THOUSANDS OF CANADIAN DOLLARS)                             JUNE 30/04     SEPT. 30/03     JUNE 30/03
----------------------------------                             ----------     -----------     ----------
<S>                                                            <C>            <C>            <C>

Bank indebtedness                                               $  424,312     $  355,080     $  468,260
Term debt                                                          363,991        404,598        424,064
Cash                                                              (118,294)            --             --
                                                                ----------     ----------     ----------
Net funded debt                                                    670,009        759,678        892,324
Minority interest                                                   15,260         15,603         14,790
Shareholders' equity                                             1,424,441      1,365,412      1,447,882
                                                                ----------     ----------     ----------
Total capitalization                                            $2,109,710     $2,140,693     $2,354,996
                                                                ==========     ==========     ==========
Net funded debt to total capitalization                              31.8%          35.5%          37.9%
                                                                ==========     ==========     ==========
</TABLE>







<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS

RESULTS FROM OPERATIONS

Management has prepared the following review of the Group's operating results
and financial position for the three month and nine month periods ended June 30,
2004, which is based upon accounting principles generally accepted in Canada.
All amounts are in Canadian dollars unless specified otherwise. This analysis of
the Group's operations has been derived from and should be read in conjunction
with the accompanying unaudited interim consolidated financial statements for
the three month and nine month periods ended June 30, 2004 and the audited
consolidated financial statements for the year ended September 30, 2003.

     Net sales for the third quarter increased to $555 million, from $525
million in the previous year. Products Segment sales were $538 million for the
quarter as compared to $519 million in the previous year. Custom Profiles sales
grew by 10% to $216 million from $196 million, reflecting strong economic
conditions, our sales and marketing initiatives and increased sales in our
Polish and Chinese operations. Exterior Claddings sales grew by 12% to $99
million from $89 million. Home Furnishings, which includes window coverings and
housewares, declined 20% to $61 million from $76 million. This reflects our exit
from certain of our window coverings businesses in the prior year. Outdoor
Products/RBS, which includes fencing, decking, railings, patio furniture, sheds
and Royal Building Systems, decreased 1% to $92 million. We continue to
experience increased penetration of all of our Outdoor Products, particularly
into the US, except for patio furniture sales where we turned away sales where
margins were not sufficient. Pipe/Fittings/Other Construction, which includes
commercial doors, increased 20% to $84 million from $70 million, reflecting
continued strong construction activity as well as progress in our fittings
market penetration.

     Support Segment sales for the quarter, before eliminations, increased to
$177 million, from $160 million in the previous year. Sales of Materials grew
11% to $137 million from $124 million. The increase in material requirements due
to the Products Segment's growth this quarter was augmented by sourcing
additional resin from third party suppliers, as our resin and compounding
facilities were running at full utilization. Sales in Machinery & Tooling were
$19 million as compared to our typical level of approximately $16 million per
quarter, due to our Italian equipment manufacturing plants continuing to pursue
third party projects. Sales in the Services category were $21 million,
consistent with our average over the past several quarters.

     During the quarter, sales to non-Canadian customers including foreign based
sales and exports from Canadian operations increased to $368 million or 66% of
total sales as compared to $329 million or 63% for the prior year. Adjusting for
the impact of foreign exchange, this percentage was 68% for the current quarter,
reflecting a shift to increasing growth in the US as we continue to penetrate
that market with our products and with new customers and locations.

     The Group's overall EBITDA for the quarter ended June 30, 2004 increased to
$93.4 million, from $40.3 million last year. EBITDA as a percentage of sales was
16.8% compared to 7.7% last year. After adjusting for one-time events of $42.2
million recorded in the third quarter of the prior year, last year's comparable
EBITDA was $82.5 million or 15.7%. The one-time events recorded in the third
quarter of the prior year included a $29 million charge to cost of sales and
selling expenses, relating to the write down of tangible assets, primarily being
inventories, promotional material and accounts receivable, in connection with
the decision to exit from certain retail window coverings programs in the US, a
$16.5 million charge to cost of sales and selling expenses relating to inventory
and accounts receivable provisions and a $3.3 million recovery of bonus
accruals. The increase in EBITDA reflects the continuing recovery of our Window
Coverings business, improved results in our foreign operations and in our pipe
fittings business, increased volumes in our home improvement products and a
foreign exchange gain due to a favourable movement in the Canadian dollar
against the US dollar, offset partly by higher raw material costs.

     Raw material costs increased to 48.7% of sales from 47.7% last year, after
adjusting for the impact of the one-time events recorded in the third quarter of
the prior year. The increase over last year is due to the significant increase
in the market costs of PVC resin and vinyl chloride monomer (VCM) over the last
several months and, to smaller degree, the negative affect on margins of sales
of certain inventories which were written down to net realizable value in our
last fiscal year. The Group anticipates that raw material costs (PVC resin costs
in particular) will be higher on average in 2004 than 2003 as a result of
tighter market conditions and escalating energy costs but expects PVC resin
costs will stabilize during the fall of 2004, reflecting seasonal patterns and
capacity additions in North America and Asia. Offsetting these factors are the
improvements in costs due to the exit of resale items in our Window Coverings
business, a shift in product mix towards Custom Profiles growth and increased
sales in fittings, where our material costs are lower.

     Labor costs decreased to 12.7% of sales from 13.2% last year. The Group
continues to monitor its production processes and tighten its lead times,
creating savings in overtime and utilizing less seasonal manpower. Increased
line speeds have also resulted in better absorption of labour costs, thus
reducing the overall percentage in the current quarter.

     Other manufacturing costs decreased slightly as a percentage of sales to
9.9% as compared to 10.2% last year, after adjusting for the impact of the
one-time events recorded in the third quarter of the prior year. Gains
experienced through improved efficiencies and capacity utilization improvements
are offset by lower absorption of costs into goods manufactured due to our
continuing focus on restraining inventory levels, as well as the expenses
associated with the amalgamation of certain existing capacities, higher utility
and insurance costs throughout the Group. As the Group continues to review
existing operations and capacities, maintains tight controls over capital
expenditures, implements best practices in operations and increases sales
volumes, it is expected that there will be an improvement in fixed cost
absorption and thus a decrease in other manufacturing costs as a percentage of
sales.

     Selling and distribution costs decreased to 12.5% of sales as compared to
13.5% last year, after adjusting for the impact of the onetime events recorded
in the third quarter of the prior year. We have stabilized the use of funds for
sales and marketing activities and drive more from cross-selling and related
initiatives with our core products and existing channels. In addition,
warehousing costs have been reduced as a result of our inventory management
program and improvement in our distribution logistics. General and
administration costs as a percent of sales decreased from 5.8% to 5.4%, after
adjusting for the impact of the one-time events recorded in the third quarter of
the prior year. These costs are flat in absolute dollar terms despite increasing
sales, as we continue to monitor our overhead costs and gain efficiencies from
improved processes.

     Products Segment EBITDA, for the quarter ended June 30, 2004 increased to
$58.7 million as compared to $6.8 million last year. EBITDA as a percentage of
sales increased to 10.6% from 1.3% last year. Excluding the one-time events in
the third quarter of the prior year, EBITDA was $50.3 million last year or 9.6%
of sales. The increase from the prior year reflects the continuing recovery of
our Window Coverings business, improved results in our foreign operations and in
our pipe fitting business and increased volumes in our home improvement
products, offset partly by higher raw material costs.

     Support Segment EBITDA for the quarter ended June 30, 2004, increased
marginally to $34.7 million as compared to $33.5 million last year. EBITDA as a
percentage of sales decreased to 19.6% from 21.0% last year. Excluding the
one-time events in the third quarter of the prior year, EBITDA was $32.2 million
last year or 20.2%. The Support Segment EBITDA reflects the contribution from
increased volumes in our Materials operation and increased third party sales in
our Machinery and Tooling operations. Amortization expense for the quarter was
$33.6 million compared to $32.2 million in the prior year.

     Amortization expense is anticipated to level off, reflecting our restraint
on capital expenditures over the last several quarters as we continue to focus
on increasing our utilization of our existing manufacturing assets. Capital
expenditures for the quarter were $19.6 million, much less than this quarter's
amortization charges. In the Products Segment, amortization as a



<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS

percentage of sales was 4.3% for the quarter as compared to 4.4% in the prior
year. In the Support Segment, amortization as a percentage of sales was 5.6% for
the quarter as compared to 5.8% for the prior year. Interest and financing
charges decreased to $9.7 million as compared to $12.6 million in the prior
year, reflecting the lower level of funded debt as compared to the same quarter
last year, partially offset by the effect of the negative carry on the
reinvestment rates on our deposit position as compared to that charged on our
drawn bank lines. All interest costs were expensed in the current quarter,
whereas $0.5 million was capitalized to assets under construction during the
same quarter last year.

     The income tax rate for the quarter was 29%. Excluding the effect of the
$13 million non-cash charge to future income tax expense recorded in the first
quarter, the Group's overall effective income tax rate for fiscal 2004 is
expected to be between 28% to 30%.

     Net earnings during the quarter increased to $35.5 million from a net loss
of $1.6 million last year. On a basic and diluted basis, earnings per share for
the period was $0.38 as compared to a loss of $0.02 per share for the same
period in the prior year. Excluding the impact of the one-time events recorded
in the third quarter of the prior year, earnings were $27.9 million or $0.30 per
share.

     As previously reported, the Group established a special committee in late
December 2003 as a result of the Group being advised that the Ontario Securities
Commission ("Commission") was conducting a regulatory investigation of the
Group. The special committee was asked by the board of directors to conduct an
independent inquiry into the principal subject matter of the investigation --
being the transactions between the Group and the St. Kitts resort development
project. The St. Kitts project is controlled by the Group's majority shareholder
and its investors include another significant shareholder of the Group and the
Group's Chief Executive Officer. The special committee consisted solely of
independent directors who retained independent legal counsel who retained
forensic auditors to assist in the inquiry. The forensic auditors investigated
the transactions between the Group and the St. Kitts project and concluded that
they found no evidence of conduct or actions calculated to improperly shift
costs to the Group from the project. They also found no evidence of any pattern
of deliberate non-billing or under billing of costs by the Group to the project.
The forensic auditors did point out that certain conduct, such as collusion with
a supplier to invoice the Group for costs related to the St. Kitts project, is
difficult to uncover without specific focus or allegations. Based on all
information, including in particular, the results of the forensic auditor's
investigation, the special committee recommended that no further investigative
actions be taken as of April 21, 2004. Notwithstanding the foregoing, the
Commission has advised the Group that the RCMP continues its previously
announced investigation and that the investigation may produce results which are
material to the Group, most specifically in relation to its past financial
disclosure and certain trading. Accordingly, the Commission retains an
investigative interest in the St. Kitts project. The Commission has also
indicated, as the Group has previously disclosed, that it is investigating the
Group with respect to disclosure records, financial affairs and trading in the
shares of the Group. The Group believes such matters are not material, and that
it has not breached any statutory requirements or offended any public interest
concerns in respect of such matters. Additional details are disclosed in the
Group's press release of April 29, 2004. The Group currently believes that the
approximate $2.3 million in costs incurred to date in connection with the
investigations represents the bulk of the expenses to be incurred. However, the
Group has no control over the investigation process and accordingly cannot
predict the amount of any additional costs that may be incurred in the future.

     As reported as a subsequent event in the notes to the consolidated interim
financial statements, during the current fiscal year the Group established a
Restricted Stock Unit Plan ("RSUP") for the purposes of offering an exchange of
options granted under the Group's Long-Term Incentive Plan (formerly the Group's
1994 Stock Option Plan). On July 2, 2004, 318,304 restricted stock units
("RSUs") were granted to certain employees of the Group in exchange for
3,536,809 options granted under the Group's Long-Term Incentive Plan. Based on
the market price on the grant date of these RSUs, it is expected that
compensation expense of $1.9 million will be recorded in each of the next two
quarters. In addition, the Group also established a Senior Management Incentive
Plan ("SMIP"). On July 2, 2004, 1,395,000 RSUs were granted to certain senior
employees and members of senior management of the Group. Based on the market
price on the grant date of these RSUs, it is expected that compensation expense
of $1.7 million will be recorded in each of the next ten quarters.

     As reported as a subsequent event in the notes to the consolidated interim
financial statements, the Group incurred certain severance and retirement costs
totaling approximately $3 million, principally in respect of certain of the
executive officers named in the Group's January 23, 2004 Management Proxy
Circular. The retirement arrangements with Mr. Vic De Zen are not yet concluded.
Mr. De Zen resigned as the Co-Chief Executive Officer of the Group in December
2003. The Group does not presently have any employment contracts or compensatory
plans or arrangements for its other senior executives in connection with
resignations, retirements, terminations of employment or a change in control of
the Group.


LIQUIDITY AND CAPITAL RESOURCES

During the quarter, the Group recorded a free cash flow source of $40.8 million
as compared to a source in the prior year of $47.4 million, when the Group was
more rapidly reducing inventory levels. Refer to the chart in Non-GAAP Financial
Measures for a calculation of free cash flow. The most comparable Canadian GAAP
measure is cash from operating activities. The Group's focus on restraining
working capital investment and capital expenditures will continue to positively
affect free cash flow, contain invested capital and improved returns.

     Working capital was $223 million at June 30, 2004 compared to $130 million
at September 30, 2003 and $171 million at June 30, 2003. Due to our continuing
efforts and focus on monitoring collections, days receivable outstanding has
improved to 56 days from 60 days last June. Days inventory outstanding has also
improved to 110 days from last June's 138 days. Inventory levels, comparing
amounts after the write-downs recorded in fiscal 2003, have declined in both
dollar terms and unit levels from last year as we continue to focus on further
inventory containment.

     Third quarter capital expenditures were $19.6 million compared to the prior
year's $20.9 million. For the third quarter of fiscal 2004, $16.2 million was
incurred primarily for tooling and equipment to be used in the Products Segment,
and $3.4 million for additional capacities in the Support Segment, principally
for our Materials plants, and primarily for the completion of our new acrylics
plant at our chemical manufacturing facility. Proceeds from the sale of certain
nonstrategic real estate assets in the third quarter were $3.4 million.

     At June 30, 2004, $424 million was drawn on the bank credit facility. This
balance has been classified as a current liability since the amount drawn on the
bank credit facility was converted to a non-revolving, non-amortizing term loan
repayable on April 28, 2005. The Group intends to arrange for new debt
facilities prior to April 28, 2005 in order to satisfy its long term financing
requirements. The net funded debt to total capitalization ratio at June 30, 2004
was 31.8%, compared to 35.5% at September 30, 2003 and 37.9% at June 30, 2003.
Refer to the chart in Non-GAAP Financial Measures for a calculation of net
funded debt to total capitalization.

     Our public debt ratings were recently reduced to BBB- with a Negative
Outlook by S&P, and to BBB flat with a Stable Outlook by DBRS. While the
announcement of the results of the forensic auditor's report on the St. Kitts
transactions was reassuring, the ratings agencies had lingering concerns,
including sufficiency of operating profits over the past eighteen months and our
liquidity position as compared against other companies in the same rating
category.

     In July 2004, the Group was removed from the S&P/TSX 60 and 60 Capped
Indices and added to the S&P/TSX MidCap Index.


<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS

     Management believes that until April 28, 2005 the Group's anticipated
operating cash flow and available credit under its existing financing
arrangements are sufficient to meet its working capital and capital spending
requirements, as well as debt service requirements, including the seasonal
nature of the Group's operation.


RISKS AND UNCERTAINTIES

The Group operates in many markets each of which involves various risks,
uncertainties and other factors affecting the Group specifically, its industry
or the markets generally. The Group's future performance, achievements and
financial results could be affected by these factors, which in some cases have
affected, and which in the future could affect, the Group's actual results and
could cause the Group's actual results for fiscal 2004 and beyond to differ
materially from those expressed in any forward-looking statements made by or on
behalf of the Group. These risks and uncertainties include fluctuations in the
level of renovation, remodeling and construction activity; changes in the
Group's product costs and pricing; an inability to achieve or delays in
achieving savings related to cost reductions or revenues related to sales price
increases; the sufficiency of restructuring activities, including the potential
for higher actual costs to be incurred in connection with restructuring
activities compared to the estimated costs of such actions; the ability to
recruit and retain qualified employees; the level of the Group's outstanding
debt and current debt ratings; the ability to meet the financial covenants in
the Group's credit facilities; changes in the Group's product mix; the growth
rate of the markets in which the Group's products are sold; market acceptance
and demand for the Group's products; changes in availability or prices for raw
materials; pricing pressures resulting from competition; difficulty in
developing and introducing new products; failure to penetrate new markets
effectively; the effect on foreign operations of currency fluctuations, tariffs,
nationalization, exchange controls, limitations on foreign investment in local
business and other political, economic and regulatory risks; difficulty in
preserving proprietary technology; adverse resolution of litigation,
investigations, administrative and regulatory matters, intellectual property
disputes and similar matters; and changes in environmental regulation and
currency risk exposure. Certain of these risks and uncertainties are described
in more detail below:

o  The Group's business is substantially related to the North American
   renovation, remodeling and construction markets, both residential and
   industrial/commercial. Therefore, the demand for the products manufactured
   and distributed by the Group is affected by changes in the general state of
   the North American economy, including renovation and remodeling, new housing
   starts and the level of construction activity in general.

o  The price and availability of raw materials, and in particular PVC resin and
   VCM, represents a substantial portion of the cost of manufacturing the
   Group's products. Historically, there have been fluctuations in these raw
   materials' prices and in some instances price movements have been volatile
   and affected by circumstances beyond the Group's control. There can be no
   assurance that the Group can pass on increases from normal market
   fluctuations in the price of PVC resin, VCM and other raw materials to its
   customers through increases in selling price, or otherwise absorb such costs
   increases without significantly affecting its margins. In addition, the Group
   has occasionally found certain raw materials to be in short supply. The Group
   could experience materially adverse circumstances if the availability of
   either PVC or VCM became restricted due to market conditions, or issues
   particular to the Group.

o  As previously reported, the Group established a special committee in late
   December 2003 as a result of the Group being advised that the Ontario
   Securities Commission ("Commission") was conducting a regulatory
   investigation of the Group. The special committee was asked by the board of
   directors to conduct an independent inquiry into the principal subject matter
   of the investigation - being the transactions between the Group and the St.
   Kitts resort development project. The St. Kitts project is controlled by the
   Group's majority shareholder and its investors include another significant
   shareholder of the Group and the Group's Chief Executive Officer. The special
   committee consisted solely of independent directors who retained independent
   legal counsel who retained forensic auditors to assist in the inquiry. The
   forensic auditors investigated the transactions between the Group and the St.
   Kitts project and concluded that they found no evidence of conduct or actions
   calculated to improperly shift costs to the Group from the project. They also
   found no evidence of any pattern of deliberate non-billing or under billing
   of costs by the Group to the project. The forensic auditors did point out
   that certain conduct, such as collusion with a supplier to invoice the Group
   for costs related to the St. Kitts project, is difficult to uncover without
   specific focus or allegations. Based on all information, including in
   particular, the results of the forensic auditor's investigation, the special
   committee recommended that no further investigative actions be taken as of
   April 21, 2004. Notwithstanding the foregoing, the Commission has advised the
   Group that the RCMP continues its previously announced investigation and that
   the investigation may produce results which are material to the Group, most
   specifically in relation to its past financial disclosure and certain
   trading. Accordingly, the Commission retains an investigative interest in the
   St. Kitts project. The Commission has also indicated, as the Group has
   previously disclosed, that it is investigating the Group with respect to
   disclosure records, financial affairs and trading in the shares of the Group.
   The Group believes such matters are not material, and that it has not
   breached any statutory requirements or offended any public interest concerns
   in respect of such matters. Additional details are disclosed in the Group's
   press release of April 29, 2004. The Group currently believes that the
   approximate $2.3 million in costs incurred to date in connection with the
   investigations represents the bulk of the expenses to be incurred. However,
   the Group has no control over the investigation process and accordingly
   cannot predict the amount of any additional costs that may be incurred in the
   future.

o  The Group's bank credit facility was converted to a non-revolving,
   non-amortizing term loan payable on April 28, 2005. The Group intends to
   arrange for new debt facilities prior to such date, at rates comparable with
   existing rates on its current debt facilities, in order to satisfy its
   continuing financing requirements.

o  As the Group carries out a significant portion of its activities in foreign
   markets (including the US), it is exposed to the risk of foreign exchange
   fluctuations. The Group uses an exchange rate of $1.33 or inversely $0.75 to
   the US dollar, for planning purposes for fiscal 2004. The Group attempts to
   minimize risks associated with currency fluctuations through matching of the
   currency of debt financing and the currency of certain raw material
   purchases, sales or asset acquisitions. This, however, is not always
   economically practical and the Group may not be able to offset any or all of
   its foreign market risks. While the Group has not entered into significant
   market instruments with respect to foreign exchange hedging in the past, it
   may, if deemed necessary, do so in a prudent fashion, in the future. The
   Group does not purchase derivative instruments beyond those needed to hedge
   foreign currency requirements.

o  The Group faces a high level of competition in most product categories and
   geographic regions. Low cost foreign competitors continue to be a threat to
   the Group's cost structure, particularly in its consumer product lines. The
   Group attempts to minimize risks associated with this by striving to reduce
   costs when feasible and/or offer enhanced customer services. In addition, the
   Group may compete in some product categories and regions with larger, better
   capitalized companies which may be better positioned to respond to shifts in
   the marketplace.


<PAGE>
CORPORATE INFORMATION


CORPORATE OFFICE

Royal Group Technologies Limited
1 Royal Gate Blvd.,
Woodbridge, Ontario
Canada L4L 8Z7
Telephone: (905) 264-0701
Facsimile: (905) 264-0702
Web site: www.royalgrouptech.com


TRANSFER AGENTS AND REGISTRARS

Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, Ontario M5J 2Y1
Telephone: 1-800-564-6253 or (514) 982-7270
Facsimile: 1-888-453-0330 or (416) 263-9394
E-mail: caregistryinfo@computershare.com

Co-Transfer Agent (U.S.A.)
Computershare Trust Company, Inc.
303 Indiana Street, Suite 800
Golden, Colorado 80401
Telephone: (303) 262-0600
Facsimile: (303) 262-0700


SHAREHOLDER INQUIRIES

Responses to shareholder inquiries as well as information published by the
Company for its shareholders and others, including annual reports, quarterly
reports and annual information forms may be obtained from:

Investor Relations
Royal Group Technologies Limited
1 Royal Gate Blvd.,
Woodbridge, Ontario L4L 8Z7
Telephone: (905) 264-0701
Facsimile: (905) 264-0702
E-mail: info@royalgrouptech.com
Web site: www.royalgrouptech.com


DEBT RATINGS

<TABLE>
<CAPTION>
RATING AGENCY         MEDIUM TERM NOTES
-------------         -----------------
<S>                   <C>

DBRS                  BBB
S&P                   BBB-
</TABLE>



INDEX LISTINGS

S&P/TSX Composite Index
S&P/TSX Mid Cap Index


TRADING DATA (STOCK SYMBOL: RYG)

Toronto Stock Exchange (TSX)
New York Stock Exchange (NYSE)

<TABLE>
<CAPTION>
                                                         VOLUME
                    HIGH         LOW         CLOSE     (IN 000'S)
                    TSX          TSX          TSX       TSX+NYSE
                  -------      -------      -------    ----------
<S>               <C>          <C>          <C>        <C>

Fiscal 2004
Q3                $ 16.45      $ 11.75      $ 12.00      14,894
Q2                  17.40        11.99        14.38      25,895
Q1                  12.70         8.60        12.30      26,710

Fiscal 2003
Q4                $ 12.71       $ 9.51      $ 12.10      20,083
Q3                  10.69         6.60         9.63      33,877
Q2                  16.79         6.57         6.85      30,163
Q1                  17.50        13.02        15.21      19,095
</TABLE>



OUTSTANDING SHARE INFORMATION
as at June 30, 2004 and 2003

<TABLE>
<CAPTION>
                                    2004          2003
                                  ----------     ----------
<S>                               <C>            <C>
Multiple Voting Shares            15,935,444     15,935,444
Subordinate Voting Shares         77,420,726     77,285,173
                                  ----------     ----------
Total Shares Outstanding          93,356,170     93,220,617
                                  ==========     ==========
</TABLE>


Total options outstanding as at June 30, 2004 are 7,877,414 (2003 - 9,064,217).


FORWARD LOOKING STATEMENTS

The information in this document contains certain forward-looking statements
with respect to Royal Group Technologies Limited, its subsidiaries and
affiliates. These statements are often, but not always made through the use of
words or phrases such as "expect", "should continue", "continue", "believe",
"anticipate", "estimate", "contemplate", "target", "plan", "budget", "may",
"will", "schedule" and "intend" or similar formulations. By their nature, these
forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are inherently
subject to significant, known and unknown, business, economic, competitive and
other risks, uncertainties and other factors affecting Royal specifically or its
industry generally that could cause actual performance, achievements and
financial results to differ materially from those contemplated by the
forward-looking statements. These risks and uncertainties include fluctuations
in the level of renovation, remodeling and construction activity; changes in
product costs and pricing; an inability to achieve or delays in achieving
savings related to the cost reductions or revenues related to sales price
increases; the sufficiency of our restructuring activities, including the
potential for higher actual costs to be incurred in connection with
restructuring activities compared to the estimated costs of such actions; the
ability to recruit and retain qualified employees; the level of outstanding debt
and our current debt ratings; the ability to meet the financial covenants in our
credit facilities; changes in product mix; the growth rate of the markets into
which Royal's products are sold; market acceptance and demand for Royal's
products; changes in availability or prices for raw materials; pricing pressures
resulting from competition; difficulty in developing and introducing new
products; failure to penetrate new markets effectively; the effect on foreign
operations of currency fluctuations, tariffs, nationalization, exchange
controls, limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving proprietary
technology; adverse resolution of litigation, investigations, administrative and
regulatory matters, intellectual property disputes, and similar matters; changes
in environmental regulations; currency risk exposure and other risks described
from time to time in publicly filed disclosure documents and securities
commission reports of Royal Group Technologies Limited and its subsidiaries and
affiliates. In view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in this document
are made as of August 26, 2004 and Royal disclaims any intention or obligation
to update or revise any statements made herein, whether as a result of new
information, future events or otherwise.




                         [ROYAL GROUP TECHNOLOGIES LOGO]