Seprotech Systems Incorporated

Seprotech Systems Incorporated

January 23, 2008 09:28 ET

Early Success for Seprotech's Partner in Mexico: Valsi Corp. Lands Strategic Land Development Project

OTTAWA, ONTARIO--(Marketwire - Jan. 23, 2008) - Seprotech Systems Inc. (TSX VENTURE:SET), a Canadian Environmental Technology Company and manufacturer of water and wastewater treatment systems, is pleased to announce that its partner in Mexico, Evans Power Equipment, has received its first major order totalling approximately $ 728,000.00 CAD (7.75 M Peso) from a major real estate developer. Seprotech is a public company traded on the Toronto Ventures Exchange under ticker SET and Evans is a subsidiary of Valsi Corporation, a major Mexican corporation.

Under the terms of the licensing and distribution agreement signed on the 31st of August 2007, Seprotech will receive a 10% royalty based on the mechanical equipment portion of the contract valued at approximately $ 365,000.00 CAD or (3.88 M Peso) in addition to payment for engineering, management and sales support expenses.

"We are very encouraged by this early success with a major developer. It is very important to have an installed base to promote sales and this project will serve as a reference sight for Seprotech's water treatment solutions in Mexico," said Martin J. Hauschild, President & CEO of Seprotech. "Clean water is a vital requisite to Mexico's economic boom and the need for water treatment solutions remains strong throughout Latin America. The sales channels opened through Evans' network of over 400 offices and manufacturing sites would have otherwise taken us years to develop."

"In light of the construction downturn in the United States, the distribution agreement with Evans highlights the timeliness of Management's strategy to expand into stronger global markets through partnerships and licensing agreements." Continued Mr. Hauschild. "By shifting manufacturing of key components to Evan's facilities in Guadalajara, we are increasing Seprotech's growth potential by expanding production capacity, increasing margins and generally improving competitiveness in overseas markets through reduced equipment costs."

"This contract is very strategic and is located at a major tourist development where no other available technology could meet the water treatment criteria. The Mexican housing market continues to experience strong growth and this high profile reference facility puts us on track to playing a leadership role in introducing advanced water technologies to Mexico." Said Jorge Valdez, President of Valsi Corporation. "The lower operating cost through reduced power consumption of more than 50 % compared to conventional technologies was a key factor in the clients decision to use Seprotech's equipment."

Seprotech is a provider of pre-engineered water and wastewater treatment plants to the land development, resource sector and military market place, including CrystalBlue™ membrane-based water recycling systems and the ROTORDISK® wastewater treatment systems.

Evans Power Equipment S.A is a subsidiary of Valsi Corporation of Guadalajara Mexico. Evans and Valsi are both private companies.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.

Contact Information

  • Seprotech Systems Incorporated
    Mr. David Thumwood
    Business Development Manager, Valsi Corporation
    Seprotech Systems Incorporated
    Mr. Robert J. Searle, CFO
    Investor Relations
    613-731-0851 (FAX)