-- We anticipate commencing harvesting up to approximately four million
2005 year-class scallops during April of 2007.
-- We expect to begin harvesting the 2006 year-class scallops during the
Spring of 2008, however, we could begin harvesting portions of the class
sooner if mortality rates (at various points of the growth cycle) are
significantly better than our current projection or if growth rates are
substantially higher. We anticipate that at least 10 million scallops could
reach full maturity and thus be harvested.
-- We anticipate that beginning February 2007, we will plant 100 million
scallop seed and rapidly increase farm production with a projected minimum
2007 scallop class of at least 50 million, which we expect to begin to
harvest in early 2009.
-- Lastly, we expect to produce more than 200 million scallop seeds in
2008, with a projected 2008 scallop class of at least 100 million scallops.
Robert Saunders, Chairman and CEO, stated, "This harvest activity is a
strong testament to the exceptional results shown by Edgewater's expanding
marine hatchery operation, and our products are proving to be of the
highest quality in the industry. It also speaks to our ability to augment
and enhance our operations after fully capitalizing our scallop operations
through our US$5.4 million financing completed on July 11, 2006. Since the
completion of the financing, we have aggressively focused on the grow out
of the Company's onshore scallop operations, its onshore hatchery
facilities, expansion of its processing capacity as well as continuing to
develop larger and faster growing scallops through our breeding program.
"Much of success in the last several months can be credited to our finance
committee's ability to fully capitalize our scallop operation in July; it
sent a very compelling message to the Edgewater Team," said Rob Saunders.
"It was a message of faith and confidence and, as a result, we were finally
given the opportunity to prove the validity of our marine hatchery business
model."
Edgewater Foods has developed a series of proprietary hatchery techniques
for a number of marine species, most notably hybridizing the Pacific
scallop. In addition, Edgewater was the first company to produce commercial
quantities of sablefish juveniles. Both of these breakthroughs required
many years of research and considerable investment. In the case of
sablefish, which is a cold-water fish that spawns at depths of 800-2400 ft,
a variety of techniques were required to successfully mature, spawn,
incubate and rear the larvae.
The scallop species farmed by Island Scallops has a proven record of being
disease resistant, with a 95% survival rate during the grow-out phase. The
Company has the necessary farming infrastructure to significantly increase
its scallop production to 25 million scallops annually by the fall of 2007.
Edgewater Foods is the predominant producer of live "in the shell" scallop
products in North America. There are no known direct competitors in the
scallop farming business in British Columbia and ISL is the only hatchery
producing the Pacific scallop. The Company sells scallop seed to a number
of small independent scallop growers who sell their products into the same
marketplace; however, production from these growers totals less than
500,000 scallops per year. Five British Columbia joint venture farmers are
currently farming scallops and receive scallop seed, technology, and
support in an arrangement with ISL.
ISL currently distributes the scallops through specialty wholesalers with
particular expertise in selling to restaurants, and has developed a market
for whole live scallops that exceeds 5,000 lbs. per week into Vancouver.
As distribution is expanded, the Company will continue to focus on
specialty wholesalers with strong ties to major restaurants.
ISL, a Vancouver Island aquaculture company, was established in 1989 and
for over 15 years has successfully operated a scallop farming and marine
hatchery business. ISL's scallop farms are situated along both the east and
west coasts of Vancouver Island. These facilities represent the largest
private marine research hatchery and the first fully integrated shellfish
producer in Canada.
ISL is dedicated to the farming, processing and marketing of high quality,
high value marine species: scallops and sablefish (or blackcod). Farmed
scallops are relatively new to North America and ISL is the only producer
of both live-farmed Pacific scallops and live sablefish. ISL has
developed proprietary hatchery technology for the hybridization of Pacific
scallops and production of juvenile blackcod. These new husbandry
techniques significantly increase growth yields, while strengthening the
selected strain's ability to resist disease. In the case of blackcod,
there were a number of technical difficulties associated with spawning that
ISL has solved with its technological innovations. As such, there are no
existing competitors that produce and/or harvest both scallops and
blackcod. Edgewater seeks to become a leader in the highly profitable
niche seafood industry.
Through ISL, Edgewater is an aquaculture and marine hatchery that provides
consumers with healthy, environmentally friendly alternatives to the
current market. The unique hatchery technologies held by Edgewater give it
the advantage of being a "Green" environmentally friendly business. For
additional information on Edgewater Foods International Inc., please visit
http://www.edgewaterfoods.com or call (800) 793-0087.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking
statements under securities law. These statements involve a number of
important risks and uncertainties that could cause actual results to differ
materially including, but not limited to, the performance of joint venture
partners, as well as other economic, competitive and technological factors
involving the Company's operations, markets, services, products and prices.
With respect to Edgewater, except for the historical information contained
herein, the matters discussed in this news release are forward-looking
statements involving risks and uncertainties that could cause actual
results to differ materially from those in such forward-looking statements.
Potential risks and uncertainties include, but are not limited to,
Edgewater's extremely limited operating history, uncertainties related to
the Company's access to additional capital, competition and dependence on
key management.
Contact Information: Contact: Tom Bostic (800) 793 0087 Aurelius Consulting Group, Inc. (800) 644-6297 PR Global Concept 49 (0)2166 - 144940