SOURCE: National Automation Services, Inc.

January 23, 2008 07:00 ET

National Automation Services, Inc.'s Subsidiary Announces Signing of Four Contracts Worth an Estimated $366,000

Company Expands Its Expertise to Include Water Treatment Facilities and Industrial Refurbishment

LAS VEGAS, NV--(Marketwire - January 23, 2008) - National Automation Services, Inc. (PINKSHEETS: NASV) (www.n-a-s-inc.com), is pleased to announce that one of its subsidiaries, Intecon Controls, Inc, (Intecon) has signed a series of contracts worth an estimated $366,000 in Arizona. These contracts have an expected profit margin of 25%.

The first contract is the Sonoran Vista Well Site, which is owned by a local private water company, Global Water. The task is to build a RTU control section using Allen Bradley PLCS and a MDS Radio. Intecon will provide instrumentation package for well security.

The second contract is with SEZ America. SEZ America is an original equipment manufacturer that chemically wet-treats wafers. Intecon has been selected to build Power Distribution Panels for legacy equipment returned to SEZ for refurbishment.

The third contract is with The Surprise Foothills Water Campus Project (Surprise). Surprise is a Two-Zone Booster and Storage facility in Surprise, Arizona. Intecon has been awarded Phase One of four expected phases that includes one reservoir, four booster pumps in zone 7, four booster pumps in zone 8 and two hydro-pneumatic tanks. Intecon will be responsible for all Instrumentation and Controls for the Project.

The fourth contract is with the South Central Arizona Project Reservoir and Booster Site for the City of Mesa, Arizona. Intecon is supplying Instrumentation for the influent, effluent, and the main area. Intecon is also providing lighting controls and smoke exhaust fans control as part of the instrumentation package.

David Marlow, President of Intecon Controls, Inc, when announcing the contracts stated: "At Intecon, we take pride in servicing the engineering needs of a wide variety of fields and industries. These contracts show that our efforts, in conjunction with the expertise of NAS, to diversify our clientele have been more successful than we had originally predicted. We look forward to expanding into several new markets over the course of the coming year."

Intecon Controls, Inc 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 25%.

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ABOUT NATIONAL AUTOMATION SERVICES, INC.

NAS is making a much BIGGER ONE out of SMALLER ONES

From Hand Production to Automation

Before the Industrial Revolution, virtually all goods were made by hand. With the Industrial boom of the 1900's, automation and controls industry was born to improve the quality and reduce the costs of tedious, repetitive tasks in the industrial plants.

Immediately after World War II, computers were born, almost entirely for scientific purposes. By the early 60's, computers began to make their way rapidly into process control and production. Automated assembly lines took on more and more tasks, allowing for an increasing number of automated processes and adjustments. By eliminating tedious task usually performed by hand, the owners of a plant realized higher quality and more through put which improved not only quality, but competitiveness as well.

Today's Markets

Automation touches our lives without notice, from the food we eat, to the clothes we wear, to the building materials we use, i.e. food, clothing, and shelter, and almost everything else of which we consume or come in contact with uses automation.

Accordingly, the markets of National Automation Services, Inc., are vast. They include waste/water treatment, airport security systems, bottling plants, power plants, metals, mining, breweries, food processing, tire making, textiles, plastics, i.e. virtually all production activities.

Although there are a handful of very large automation and controls companies, the industry is highly fragmented with about 286 companies of modest size in the U.S., privately owned, and local in nature, and totalling approximately $32 billion in annual gross sales.

A handful of larger automation companies dominate the market as they offer national, as well as worldwide support for the Corporate and Government Clients they serve. Overall the automation industry in the U.S. alone tops the $400 billion mark each year which is largely serviced by this handful of firms.

Where We Are Going

NAS intends to build a nationwide company through acquisitions and internal growth in this fragmented market. We believe that our growing company will retain healthy margins and produce attractive increases in earnings per share during the period of this Plan. Our estimate is that we will immediately produce cost savings of 12-15% on each acquisition, thereby driving consolidated EBITDA and earnings per share. Furthermore, NAS, by utilizing the expertise of the group, the sharing of national contracts and proven revenue enhancement techniques, has the goal of doubling the gross sales of each acquisition in the first 12 months of the date of each acquisition.

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.

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.

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

  • 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 9859