ILI Technologies (2002) Corp.
TSX VENTURE : ILI

ILI Technologies (2002) Corp.

March 14, 2011 09:00 ET

ILI Technologies Receives Purchase Order

CALGARY, ALBERTA--(Marketwire - March 14, 2011) - ILI Technologies (TSX VENTURE:ILI) is pleased to announce that its 100 % wholly owned subsidiary Cdn Oilfield Technologies & Solutions S. de R.L de C.V. ("COTS") has received a purchase order from an established Mexican corporation with over 30 years experience working directly with Pemex (the nationally owned Mexican oil and gas company), representing $10.1 million pesos (approximately $800,000 Cdn) to supply Flexsteel flexible pipe products and associated connectors in Mexico. This is the first order received for the use of Flexsteel products and marks the first success in the company's efforts to diversify its revenues. 

Cots will be working closely with officials of Pemex, the Mexican corporation and authorized installers of Flexsteel to manage the relationships between the parties and closely monitor all phases of the project. Under the terms of the purchase order multiple gathering lines ranging from 1.1 to 3.1 km in length will be installed utilizing the manufacturer's high pressure pipe product for the new construction of discharge lines to transport hydro carbons from producing gas wells to the collection stations. Delivery is scheduled to commence at the beginning of April 2011 in accordance with the installation schedule authorized by Pemex. In addition, ILI will start to build an inventory base for the products in Mexico to meet anticipated future demands and give expedited service to our clients to avoid backlogs.

Phil D'Angelo states, "This is a significant milestone for the Corporation and changes the dynamics of the company. COTS has formed the basis for a long term relationship devoting a considerable amount of resources, assisting Pemex with all phases of the approval process, establishing new policies, procedures, testing requirements and pricing models in support of the Flexteel products to ensure longevity and product reliability. New product evaluation, endorsement and certification internationally are a timely process often taking 3 to 4 years to execute. Not only was this accomplished in record time, the company is now in a position to execute bringing added value to shareholders. We fully anticipate continued success and look forward to expanding our business in Mexico."

About Flexsteel

Flexsteel is owned and manufactured by Prime Flexible Products, a world-leading designer and manufacturer of high-quality flexible pipeline products, systems and solutions for gas and fluid transportation. The advantages of Flexsteel versus current steel applications are reduced friction, reduced retention, pressure drop to increase flow, superior insulation properties to enhance heat operating temperature up to 60 degrees centigrade, superior corrosion resistance and increased flexibility.

Flexsteel pipe products conform to the Pemex specification P.2.0730,02 issued September 2010 meeting all certification requirements and API standards for Unbonded Flexible Pipe for use in Mexico.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, anticipated sales of the company and completion of installation projects . Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; currency fluctuations; and the other industry and geographic specific risk factors. Investors are cautioned that this list of risk factors should not be construed as exhaustive. 

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Investors are cautioned not to place undue reliance on forward-looking information.

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