SOURCE: Catalytica Energy Systems, Inc.

June 29, 2005 08:30 ET

SCR-Tech Expands Management Team; Strengthens Sales, Marketing and Technical Capabilities

CHARLOTTE, NC -- (MARKET WIRE) -- June 29, 2005 -- SCR-Tech LLC, a subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), announced today that it has appointed Robert Deneault as vice president of sales and marketing and Dr. Howard Franklin as director of technology.

Both Deneault and Franklin are seasoned industry veterans with more than 60 years of combined experience in the power generation industry. Deneault's background includes extensive experience in sales and marketing, business development and service operations for leading gas-fired and coal-fired power generation and emissions control equipment manufacturers, and a proven track record in driving service excellence and profitable growth. Franklin has more than 35 years of experience in power plant operation and NOx abatement. In addition to his comprehensive technical knowledge of SCR system design, operation and troubleshooting for coal-fired power generating facilities, Franklin brings to his new position a demonstrated ability to lead successful engineering and project management initiatives.

Bill McMahon, president of SCR-Tech, said, "We are pleased to have two broad-based industry experts with such a wealth of experience in their respective fields join our company. These appointments greatly strengthen our sales, marketing and technical capabilities, and add significant depth to our management team. SCR-Tech now has more than 100 years of combined experience in the power generation industry, covering the entire spectrum of power plant operation and SCR system design, installation, management and service requirements, enhancing our ability to provide a broad array of high-value solutions to better suit our customers' NOx reduction needs. With our management team now solidly in place, I believe we are better positioned than ever to move the business forward and broaden our reach in a substantial and rapidly growing U.S. NOx reduction market. We welcome Bob and Howard to the Company and look forward to their contributions to the growth of the business."

Robert ("Bob") Deneault will be responsible for all sales, marketing and customer service activities for SCR-Tech. He succeeds Ron Rogers, who is no longer employed with the Company. Most recently, Deneault served as vice president of customer service at Capstone Turbine Corporation where he was responsible for leading the Company's global service operation and overseeing its distribution, engine remanufacturing, warranty, training, call center, field service and application engineering operations. From 1979 to 2002, Deneault occupied positions of increasing responsibility at Alstom Power, Inc. (including positions with ABB Power Generation and Combustion Engineering, Inc., which were subsequently acquired by Alstom), most recently as vice president of business development and vice president of steam plants service. Other positions during his 23-year tenure included senior-level roles in sales, customer service and field engineering. Deneault holds a B.S. degree in mechanical engineering from Wentworth Institute of Technology and a MBA from Queens University of Charlotte.

Dr. Franklin will be responsible for overseeing SCR-Tech's intellectual property activities and managing its technical service operations. As part of SCR-Tech's commitment to continuously set new standards for quality and innovation, he will also contribute to enhancing the Company's capabilities associated with its SCR catalyst and management service offerings. Franklin comes to SCR-Tech from Hitachi America, where he served as an SCR technical manager from 2000 to 2005. During his five years with Hitachi, he was responsible for all technical aspects and engineering associated with the Company's SCR systems and for the design, application and operation support for SCR catalyst. Previously, Franklin spent 27 years at Foster Wheeler Energy Corporation, where he held positions of increasing responsibility in project management, engineering, manufacturing and construction, most recently as the primary technical manager for all post-combustion NOx control. During his tenure at Foster Wheeler, Franklin was instrumental in the designs of the first four coal-fired SCR systems installed in the U.S., and was involved in the design, construction, start-up and operation of large complex power plant operations including SCR systems. Franklin holds B.S., M.S. and Ph.D. degrees from Brooklyn Polytechnic Institute.

SCR-Tech LLC, based in Charlotte, North Carolina, is the North American leader in catalyst regeneration technologies and management services for selective catalytic reduction (SCR) systems used by coal-fired power plants to reduce nitrogen oxides (NOx) emissions. The Company offers a wide variety of services, including SCR catalyst cleaning, rejuvenation and regeneration, as well as SCR system management and consulting services, to help power plant operators optimize their SCR system operation while reducing overall operating and maintenance costs. SCR-Tech is a wholly owned subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), a leading provider of innovative emissions solutions for combustion-related applications in the power generation and transportation industries. Find SCR-Tech on the Worldwide Web at

Catalytica Energy Systems, based in Gilbert, Arizona, is a leading provider of innovative products and services to meet the rapidly growing demand for emissions control solutions in the power generation and transportation industries. Through its SCR-Tech subsidiary (, the Company offers a variety of services for coal-fired power plants using selective catalytic reduction (SCR) systems to reduce nitrogen oxides (NOx) emissions. Catalytica Energy Systems' other business activities include the design, development and manufacture of advanced products based on its proprietary catalyst and fuel processing technologies to offer cost-effective solutions for reducing NOx emissions from diesel engines and natural gas-fired turbines. The Company's Xonon® Diesel Fuel Processing technology is designed to facilitate significant NOx reduction from mobile, stationary, and off-road diesel engines by improving the performance of NOx adsorber catalyst systems. Catalytica Energy Systems' commercially available Xonon Cool Combustion® system offers a breakthrough pollution prevention approach for gas turbines to achieve ultra-low emissions power generation through a proprietary catalytic combustion process. Other activities include the development of fuel processing systems for fuel cell applications in stationary, auxiliary, and back-up power applications. Find Catalytica Energy Systems on the Worldwide Web at

This news release contains forward-looking statements regarding SCR-Tech's ability to provide a broad array of high value solutions to better suit its customers' NOx reduction needs; the market opportunities and growth prospects for SCR-Tech's business; and the ability of SCR-Tech to position the business to capitalize on these market opportunities and growth prospects. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others: successful management of SCR-Tech's business; that Catalytica Energy Systems may not be able to accurately predict future market opportunities and growth prospects for its SCR-Tech business; possible fluctuations in economic conditions affecting the markets for SCR-Tech's service offerings; the risk that a market may not develop or be maintained for SCR-Tech's service offerings; that there may be unanticipated events that could impact the Company's ability to successfully manage SCR-Tech's business; difficulties or delays in strengthening SCR-Tech's sales and marketing activities or technical capabilities; changes in the environmental requirements relating to NOx emissions; that SCR-Tech may be unable to maintain current or develop future strategic or customer relationships for its services, including with utility and IPP customers; that any decision on the part of a customer to no longer use SCR-Tech's services could negatively adversely impact our business or results of operations; and the other risks set forth in Catalytica Energy Systems' most recently filed Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Catalytica Energy Systems undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances occurring after the date of this release.

Contact Information

    SCR-Tech LLC
    Bill McMahon
    (704) 827-8933

    Catalytica Energy Systems, Inc.
    Megan Meloni
    Investor Relations
    (650) 940-6253