SOURCE: National Automation Services, Inc.

November 07, 2007 16:05 ET

National Automation Services, Inc. Announces Second Acquisition as Part of National Expansion Program

Intecon Controls, a Phoenix Based Automation Controls Company, Agrees to Be Acquired

LAS VEGAS, NV--(Marketwire - November 7, 2007) - National Automation Services, Inc. (PINKSHEETS: NASV) (, is pleased to announce that its has reached an agreement to purchase Intecon Controls ("Intecon") located in Phoenix, Arizona for a combination of cash and restricted stock worth $1.75 Million. Intecon (, a 9 year old company, specializes in engineered controls, UL Certified Panel Facility and Systems Integration that services the Arizona Industrial and Municipal Market. As part of the agreement, the current shareholders and management of Intecon, Brandon Spiker and David Marlow, who have over 25 years of combined automation and controls experience, have agreed to stay with Intecon for a minimum of two years after the closing.

Intecon was established by its present shareholders in 1998 and presently employs 15 engineers and staff. The company historically averages between $2.8 and $3.5 million in gross revenues, with net profit margins of approximately 20%. Customers Intecon serves are: Frito Lay, 3M Company, Raytheon Systems Company, TRW Safety Systems, Flour Daniel, Coca Cola Bottling, Hughes Missile, Delta, Archer Daniels Midland, Arizona Public Service, Honeywell, among others.

NAS estimates that there are cost synergies between ISS, another wholly owned subsidiary of NAS, and Intecon of immediate savings of 15 to 20% in reduced overhead, accounting and legal costs, which should fall immediately to the bottom line of NAS on a consolidated basis. NAS anticipates doubling the revenues of Intecon in 2008 through the introduction of national clients available to NAS who have the need of localized products and services in the Phoenix market, as well as through increased marketing of Intecon services throughout Arizona.

Robert Chance, CEO of National Automation Services, Inc., in announcing the acquisition stated: "We are very excited about the opportunity Intecon brings to our Company in our continuing effort to build a nationwide network of Automation and Controls Companies. The Management of Intecon share our vision of developing an integrated company, with local subsidiaries, to handle nationwide contracts for the Industrial and Municipal Markets, and to ultimately create shareholders value through a sale of the integrated company to a larger industry participant. Intecon Controls is exactly what we are looking for in the way of acquisition targets for our nationwide campaign, our sights are set on a number of smaller fragmented automation companies with a goal of adding 10 additional in 2008. We welcome them and look forward to the contributions they will make towards our goals as a Company."

If you want to learn more about the overall strategy of NASV and the expected value of the Company as it moves forward in its national expansion program, please listen to the interview of Bob Chance, CEO of NASV at

In this interview, Mr. Chance discusses the automation and controls industry in general; the niche that NASV is filling in the industry; the internal and external growth prospects for the Company; his opinion on the value of the stock; and the ultimate exit strategy of the Company which should create substantial shareholder's value.

Stay up-to-date with current events by joining National Automation Services' E-Mail Alert List. Join by clicking the following link:


National Automation Services, Inc. is a public holding company for specialized automation control companies located in the Southwestern United States. The Company presently owns 100% of the stock in Intuitive System Solutions Inc. ("ISS") of Las Vegas, Nevada. Since its formation in 2001, ISS has positioned itself as a leading system integrator and UL Certified panel facility. The Company has evolved to focus on two district lines of business. Each of these lines is linked to the foundation of the business -- integrated and automated systems controls.

The Company currently focuses on:

Industrial Automation and Control. ISS has an experienced staff of electrical and control engineers, as well as project managers, with over 80 years combined experience in industrial automation and controls. The Company's business is currently focused in Nevada, Arizona and Utah, but it intends to expand through internal growth and acquisitions into California, Texas and New Mexico and other western states during 2007 and 2008. From this segment of the business, ISS is projected to realize $4 million of gross revenues in 2007 and increase the gross revenues from this division to over $21 million in the next two years. As an example of the type of services provided by ISS in this division, a major national airline utilizes ISS extensively for automation projects at Las Vegas McCarren International Airport.

Automation Manufacturing. The Company is a certified Underwriters Laboratories Panel fabrication facility. This nationally recognized regulatory body provides ISS with significant marketplace credibility for custom control panel assembly and fabrication to its clients. From this segment of the business, ISS is projected to realize $1 million of gross revenues in 2007 and increase the gross revenues from this division to over $4 million in the next two years.

NAS projects achieving gross revenues in 2007 of $4,544,094, with a net pre-tax income of $1,781,688. Through an acquisition strategy that encompasses a minimum of one major acquisition per quarter, as well as through internal growth of ISS, due to its recently granted increase in licensing capacity to $2 million per project, the Company should increase gross revenues to $25,780,972 in 2008, with net pre-tax income of $16,190,755. With a total of 40 million shares outstanding the management of the Company projects earnings per share of $0.03 in 2007 and $0.27 in 2008.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the automation controls industry; the positioning of NAS in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether NAS can successfully gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

Contact Information

    National Automation Services, Inc.
    Bob Chance
    2053 Pabco
    Henderson, NV, 89011
    (702) 642-7720

    Investor Relations Contact:
    David Donlin
    The Cervelle Group
    238 N. Westmonte Drive
    Suite 210
    Altamonte Springs, FL 32714
    (407) 475 9966