SOURCE: National Automation Services Inc.

October 25, 2007 09:00 ET

National Automation Services, Inc.'s Wholly Owned Subsidiary Announces Automation Control Contract With Virgin Valley Water District

Intuitive Systems Solutions Awarded Contract Valued at $1,022,000 for Specialized Equipment and Services for Five Water Treatment Plants

LAS VEGAS, NV--(Marketwire - October 25, 2007) - National Automation Services Inc (PINKSHEETS: NASV) (www.n-a-s-inc.com), and its wholly owned subsidiary, Intuitive System Solutions, Inc. ("ISS") (www.isscontrols.com) are pleased to announce the signing of a contract for ISS to provide certain specialized automation equipment and services to the Virgin Valley Water District in Mesquite Nevada. The contract encompasses five plants to be built or modified in the next two years, with a special emphasis on the removal of arsenic from local groundwater. Gross revenues from this contract are estimated to be $1,022,000 with profit margins of 35%.

The project will involve ISS designing, building, and maintaining PLC cabinets, as well as installing field systems and communication equipment, developing software and commissioning and programming of all such systems. Once operational, the five plants in the Virgin Valley Water District will automatically remove arsenic from local groundwater, ensuring clean drinking and bathing water for all residents serviced by the district.

Robert Chance, CEO of National Automation Services, Inc., in announcing the contract stated: "Safe drinking water is becoming an issue for all local and state governments. With this brings the challenge of building, equipping and monitoring facilities capable of processing millions of gallons of water per day to ensure that it is safe. These facilities cost hundreds of millions to build and, once completed, must monitor and control automatically the production of clean, safe and affordable drinking water for the population it serves. Potable and wastewater processing plants are being developed in every community of the U.S. today, and we consider this to be a key market for us in the future. We have extensive experience with water treatment here in Southern Nevada, which has had tremendous growth in population over the past decade. Our interaction with Las Vegas Valley Water District, Southern Nevada Water Authority, and now Virgin Valley Water District has positioned us to expand our services not only throughout Nevada but nationwide. We hope to do this through key acquisitions of existing fragmented automation firms throughout the U.S. and developing a strategic water treatment division within the Company to service this fast growing industry segment."

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ABOUT NATIONAL AUTOMATION SERVICES, INC.

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

  • 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