SOURCE: Energy & Engine Technology Corporation

April 18, 2006 10:10 ET

EENT Announces Steps to Implement Restructuring Strategy

PLANO, TX -- (MARKET WIRE) -- April 18, 2006 -- Energy & Engine Technology Corporation (OTC BB: EENT), a leading developer of auxiliary power generators for the long haul trucking industry, today announced that it is in the process of implementing its restructuring strategy. EENT has had severe cash flow issues as it has sought to secure additional financing, causing among other things, the inability until yesterday to pay the outstanding payable owed to its former auditor, Marcum & Kliegman, to have the auditor undertake its 10-KSB review and give its consent (which payment has been made, and review and filing anticipated by Friday, April 21st). Despite this, EENT has continued to have successes, including purchase orders for 1500 units since January 1 (500 units of which are "hard") and various media events (including the press conference with the Governor of Oregon).

In order to solve its cash flow issues, EENT is currently pursuing several leads for sufficient financing to fully fund its revamped business plan, for which there seems to be significant interest on the part of the potential investors. Through its new business plan, EENT has taken significant steps to cut costs. As discussed in various recent Company filings and news releases, EENT has opted to terminate operations at BMZ and Anchor Manufacturing (which have met anticipated product development goals), in favor of outsourcing its production to third party contract manufacturers. This outsourcing has allowed EENT to streamline operations and increase efficiencies while drastically reducing overhead, at projected significant savings. Additionally, EENT has made significant cuts in corporate overhead costs, including, but not limited to, large personnel and marketing cost reductions. These measures and others will give EENT the opportunity to make the most efficient use of its anticipated proceeds from investment to maximize its chances for success.

In discussing the measures and prospects for financing, EENT's CEO, Will McAndrew, said: "We will emerge from this challenging period leaner and stronger. With a good financing package and our restructuring plan in place, I am confident that we have the right product and team to make a real impression in the marketplace."

About EENT

EENT (http://www.eent.net), headquartered in Plano, Texas, develops and markets power generation products for the long haul trucking industry and heating and air conditioning systems for the long haul trucking and marine industries.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by EENT) contains statements that are "forward-looking," as defined in Section 21E of the Securities Exchange Act, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, manufacturing capability and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of EENT. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors. These and other factors, which could cause actual results to differ materially, are discussed in more detail in EENT's filings with the Securities and Exchange Commission. Projected revenues are based upon projected unit sales at historical average per unit sales prices. Average per unit sales prices may be affected by changes in the mix of purchasers between individual owner operators and fleets/dealers. Preliminary numbers may change upon verification by internal accounting procedures.

Contact Information

  • Contact:
    Energy & Engine Technology Corporation
    Plano, TX
    Will McAndrew
    972-732-6360
    http://www.eent.net