SOURCE: Intrepid Technology

July 06, 2005 14:28 ET

Intrepid Announces New Contracts

IDAHO FALLS, ID -- (MARKET WIRE) -- July 6, 2005 -- Intrepid Technology and Resources, Inc. (ITR) (OTC BB: IESV), a renewable energy company, announces a resurgent interest in ITR's engineering services division by the Idaho National Lab and other commercial users of custom engineering work.

ITR had reallocated much of its engineering staff to the design and implementation of the company's first biogas plant which is now operating near Rupert, Idaho. With that facility now operational and much of the design work on the second biogas plant now complete, ITR has been able to shift some personnel back to its engineering services division. In the month of June, ITR has received 116,000 dollars in new engineering and technical support contracts.

"The Intrepid approach to building these biogas plants is unique," stated ITR's President, Dr. Dennis Keiser. "Once we've built one, the next in line looks pretty much like the last one. It was necessary to decrease our overall revenues the last several quarters as we were dedicating much of our staff towards bringing the first plant on-line. Now that this has been accomplished it gives us the opportunity to allocate some of our technical personnel back to revenue-generating contract services."

Dr. Keiser further stated, "While our biogas division, which designs, builds and operates these plants, will continue to generate the largest portion of ITR's revenues, the reallocation of personnel gives us an immediate revenue stream. Overall, Intrepid will turn cash flow positive in 2006 and will be profitable for that calendar year. Once these biogas plants commence operation, the revenue stream is constant and substantial. It would not be out of the question to generate close to 5 million in revenue in 2006 and anticipate it to double in 2007," Dr. Keiser concluded.

ITR has additionally started the process to utilize its ability to issue up to 20 million dollars in federal and state tax exempt industrial revenues bonds to finance the expansion to the Whitesides biogas plant and the construction of the Westpoint biogas plant. ITR anticipates the bonds being priced with interest rates under 7%.

About Intrepid Technology: We are a national leader in Methane to Market technology and production and an application innovator of Biogas products and services designed to assist in worldwide energy independence and reduce pollution from renewable agriculture feedstock and industrial and agriculture waste materials.

Statements released by Intrepid Technologies and Resources that are not purely historical are forward looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from those in such forward-looking statements. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

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