SOURCE: EGPI Firecreek, Inc.

September 09, 2010 11:35 ET

EGPI Firecreek, Inc. Releases Terra Telecom, LLC Audited and Unaudited Financial Data

Companies Announce Significant Progress With Acquisition

SCOTTSDALE, AZ--(Marketwire - September 9, 2010) -  EGPI Firecreek, Inc. (OTCBB: EFIR) released financial information on Terra Telecom's operations for the last 4 years in relation to the current due diligence process being initiated.

Audited Revenue and Net Income from Operations for the calendar year ending December 31, 2006 and 2007 showed Terra realized Revenues of $12,250,398.00 and $12,520,202.00 respectively.

For the calendar years ended December 31, 2008 and December 31, 2009 Terra reported unaudited Revenues of $17,857,999.00 and $13,231,321.00 respectively.

Terra also reported unaudited Revenues of $5,742,081.00 from Operations for the six-month period ended June 30, 2010. Management of Terra estimates that with the current backlog and work in progress levels, Revenues for the calendar year ended December 31, 2010 should be approximately $16,000,000.00.

Additionally, they anticipate that with reoccurring revenues from long term renewable maintenance contracts, that are associated with initial installation contracts, this should represent approximately $4 million of the total revenue in 2009 and is expected to increase slightly in 2010. These maintenance contracts are normally for periods of one to three years and have price escalation and renewal periods clauses built-in, while generating higher profit percentages than other revenue sources for the Company. Terra's client base currently includes but is not limited to customers in the state and local government, healthcare, education and enterprise industry segments on a nationwide and international basis.

Estimated backlog for Terra was approximately $6,000,000.00 as of June 30, 2010.

Wade Clark, CEO of Terra, stated, "I joined Terra in 2007 and have seen the substantial growth from revenues in each industry segment we serve go from $12,250,398.00 in 2006 to $16,000,000.00 in 2010. Terra brings an experienced employee base that has contributed to the expansion of our operations." He also stated, "With the support of the EFIR management team, as well as the strategic plan we have developed, we believe that this transaction is the best way to unlock the potential of the Company."

Dennis Alexander, CEO and Chairman of EFIR, stated, "As we move forward to close the Terra transaction, EFIR management has come to understand the value of the expansive customer base of Terra while recognizing the full potential of the sale, support and engineering professionals employed by Terra. What initially started as the potential of subcontracting a portion of contracted work through an original $10 million purchase order, has now morphed into a potential $15 - $20 million yearly revenue opportunity, with exciting organic growth potential between the markets served by Terra and those served by our EFIR subsidiaries." He also stated, "Since the merger with M3 in early 2009 we have embarked on pursuing two distinctive lines of business and believe that this transaction on the ITS/DOT side of EFIR, along with the planned acquisitions and planned expansion in the Gas and Oil division, we will continue to show exponential growth with the strategic initiatives that originally began with our M3 transaction."

As previously reported, on August 30th, 2010, EGPI Firecreek signed a binding Letter of Intent to acquire Terra Telecom, LLC. Terms have already been set and agreed to by both parties. Both companies are currently working through their due diligence process and plan to finalize the acquisition by September 30th.

Both companies have scheduled a signing date for a Definitive Purchase Agreement for September 17, 2010. They anticipate a closing date for the acquisition on the close of business September 30, 2010.

About Terra Telecom

Terra is an industry leader in value creation for each of their clients and stakeholders. Terra's enterprise business has experienced exponential sales volume and revenue growth since January 2005 with year to year revenue growth averaging 46.6% over 2005, 2006 and 2007. The revenue growth fueled by increases in the volume and scope of jobs created the need for significant infrastructure growth. In 2006 Terra relocated its company headquarters to a modern, 25,000 square foot facility in Tulsa, Oklahoma. This facility provides the Company the space to continue growth and the ability to manage operations throughout the nation.

Terra Telecom also works with the United Nations delivering Alcatel voice products to several countries and the Texas Dept. of Transportation, which will bring significant opportunities to EGPI through various ITS/DOT opportunities with Alcatel products.

For more information on Terra Telecom, please go to:
http://www.terratele.com

About EGPI Firecreek, Inc.

EGPI Firecreek, Inc.'s business and acquisition strategy is focused on both the vertical integration of enterprises serving the D.O.T. Construction and Intelligent Traffic System markets through South Atlantic Traffic, Inc. (SATCO) alongside its wholly owned subsidiary M3 Lighting, Inc. (M3), and on oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories, through its wholly owned subsidiary Energy Producers, Inc. (Energy Producers) and for oil and gas servicing business through its wholly owned subsidiary Chanwest Resources, LLC (CWR). EGPI Firecreek, Inc. is also looking to expand into alternative energy sources as well as industries in the energy field. Other companies in the oil sector include Exxon Mobil, Pantina Oil and Gas Inc., Frontier Oil Inc. and Cabot Oil & Gas Inc.

Safe Harbor

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of EGPI Firecreek, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond EGPI Firecreek, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in EGPI Firecreek, Inc.'s filings with the Securities and Exchange Commission.

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