SOURCE: National Automation Services, Inc.

April 24, 2008 07:00 ET

National Automation Services, Inc.'s Subsidiary, ISS, Is Awarded Contracts With Two Nevada Municipalities

Contracts Valued at $778,087

LAS VEGAS, NV--(Marketwire - April 24, 2008) - National Automation Services, Inc. (www.n-a-s-inc.com) (PINKSHEETS: NASV), a public holding company for regional automation control companies, today announced that one of its subsidiaries, Intuitive Systems Solutions, Inc., (ISS) has signed contracts with two Nevada municipalities to provide automatic controls and supporting services for water treatment plants being constructed by each municipality. The two Projects have a combined value of $778,087, with an expected gross profit margin of 35% on each contract.

The first contract is with the Moapa Valley Water District located near Lake Mead in Southern Nevada. ISS will provide the instrumentation and controls for the Moapa Valley Arsenic Treatment Project. The project involves the removal of arsenic from the groundwater in Moapa Valley, and is one of a series of similar plants that ISS is constructing in Mesquite Nevada. The contract is expected to begin on April 28th, with completion estimated to be within 6 months.

The second contract is Phase 2 of the Clark County Water Reclamation District Central Plant S. Secondary Facility. ISS will provide the instrumentation and controls, as well as supporting services, for this water treatment plant, which is located near Las Vegas, Nevada. ISS will also provide a full time project manager for the duration of the contract, which is estimated to begin on May 1st and be completed within 30 months.

Robert Chance, CEO of NASV, in announcing the contracts, stated: "These two contracts that we have just been awarded show just how far ISS has gone in expanding its reach in the municipal market over the last year. The expertise that ISS and its staff have developed in the water treatment area is now being made available to all the subsidiaries, and the acquisitions that we will make in the near future. This is another example of the internal expansion, through the sharing of industry expertise, which is ongoing throughout our entire organization, and should result in substantial growth at each subsidiary, as we attract additional municipal contracts."

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ABOUT NATIONAL AUTOMATION SERVICES, INC.

From Hand Production to Automation

Before the Industrial Revolution, virtually all goods were made by hand. With the Industrial boom of the 1900s, the 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 60s, 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 tasks usually performed by hand, the owners of a plant realized higher quality and more output 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; and almost anything else we consume or come in contact with.

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, and 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. These companies are privately owned, local in nature, and total 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. In total the automation industry in the U.S. exceeds the $400 billion mark each year, 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. NAS has an experienced staff of electrical and control engineers, as well as project managers, with 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 throughout the U.S. during 2008.

Automation Manufacturing. The Company is a certified Underwriters Laboratories Panel fabrication facility. This nationally recognized regulatory body provides NAS 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, the ability to integrate acquired companies and technology, the ability to retain key employees, the 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