SOURCE: Lyon Corporation

February 28, 2007 06:00 ET

LYON Capital Announces Growth Plans for 2007

FOX ISLAND, WA -- (MARKET WIRE) -- February 28, 2007 -- Lyon Corporation (PINKSHEETS: LYCV) -- The NEW management team, headed by Dr. Fortunato Villamagna, Ph. D., CEO of Lyon Capital Ventures, have provided the following "Open Letter" to all shareholders, friends and the investment community outlining the Company's current business model and future growth plans.

Shareholders and Friends:

Our recently announced acquisition of UTEC Corporation (UTEC) has been completed and the business successfully integrated into Lyon Capital Ventures. Dr. Fortunato Villamagna was appointed the new CEO replacing Kevin M. Murphy who we thank for his years of service. UTEC has a 40-year history as a commercial explosives research, product development and testing company, with complete pilot scale production manufacturing capabilities (PRUF Plant) for processing certain energetic materials. The two-acre corporate headquarters are located in Riverton, Kansas. The Company also has a 640-acre Underwater Testing Lab and PRUF Plant site located near Hallowell, Kansas.

About Dr. Fortunato Villamagna - CEO/Director

Dr. Fortunato Villamagna, with over twenty-seven years of experience in the API, reactive chemical intermediates, energetic materials, and commercial explosives businesses across the globe, anchors the new Lyon Capital Ventures management group. Prior to joining the company, he served as Vice President - Business Development from 2002 to 2006 for American Pacific Corporation, a maker of API's, specialty chemicals, explosives and rocket propulsion systems. From 2000 to 2002, Dr. Villamagna was the Vice President Technology, Americas and Europe for Orica USA Inc., part of the world's largest global explosives company. From 1998 to 2000, Dr. Villamagna was the Director of Bulk Delivered Products for Energetic Solutions, a part of the ICI Explosives Group. In addition to the above, Dr. Villamagna has served as a Director of a number of private companies involved in the energy, capital equipment and marketing industries.

New Organizational Structure

The Board of Directors for Lyon Capital Venture Corporation consists of Kenneth B. Liebscher/Director/Co-Chairman of the Board/Audit Committee Chairman; Howard Bouch/Director/Audit Committee; and the new members will be David P. Taylor/Director/Co-Chairman of the Board and Dr. Fortunato Villamagna/CEO/Director.

The current UTEC facility has been in operation for over 40 years, and is anchored by a team of eight highly trained scientists and technicians. The UTEC Team represents over 100 years of combined experience in the handling and testing of explosives and energetic materials. Supported by our technical staff, UTEC's Chemmarketing specialists will focus their efforts on growing the Chemical Distribution Business, as well as support our new marketing group which will focus on new business opportunities such as the waste destruction market.

UTEC staff will expand and add engineers, scientists and technical staff as new technologies, partnerships and acquisitions are brought on stream.

The New Business

UTEC and its predecessor companies have conducted research and development on commercial explosives and energetic materials since the early sixties. This work has been responsible for key developments in commercial explosives as well as new innovative ideas and improvements involving differing raw materials and manufacturing processes. Today, the company is one of a very few independent research and testing businesses in the world, strategically located and competitively positioned in the most competitive and innovative marketplace for commercial explosives and energetic materials.

Over the past four decades UTEC's high standards and reliability have allowed the company to develop a premier status with all of its customers, and strong long-term commercial relationships as a result of its focus on dependability and excellence. In some instances UTEC has even been sub-contracted by competitors due to its expertise in a number of key and proprietary areas. For example, UTEC is the only facility in the United States that has the capability to perform large-scale underwater energy tests. UTEC's cost structures are also lower than those of its largest competitors, allowing the company to provide excellent value to its customers.

UTEC's customers include the top multinational commercial explosives producers, the top U.S. commercial explosives producers, and either directly or through subcontracts, UTEC's services have been used by the Department of Defense, Department of Transportation, the Bureau of Alcohol Tobacco and Firearms and other government agencies. UTEC's customers also include multinational automotive air bag manufacturers, and UTEC has been a subcontractor on a number of demilitarization programs.

Management Goals

Management's Goals for UTEC are to have the company become the "Consultant of Choice" for commercial explosives producers and government agencies requiring explosive and energetic materials testing and R&D services. A key element of this strategy is to be recognized as an international supplier of explosive sensitizers and packaged products manufacturing technology through the licensing of the company's proprietary technology and manufacturing processes. In addition, UTEC will expand its role as a specialty products manufacturer for niche applications.

Key strengths and some of the short-term goals of the UTEC organization include:

--  Expansion of fundamental and applied research & development of new
    commercial explosives products and formulations.
--  Increasing the testing of explosive products for domestic and
    international manufacturers and users, as well as munitions manufacturers.
--  Supporting and expanding technical support for UTEC licensees,
    including the supply of raw materials.
--  Developing new explosive formulations based on available demilitarized
    explosive materials, especially smokeless powders.
--  Conducting United Nations and DOT testing for classification of
    explosive materials for all customers.
--  Expanding contract work with propellant manufacturers to develop the
    use of certain surplus composite rocket propellants in commercial
    explosives.
    
In addition to the activities above, in 2007 UTEC will expand its Chemical Distribution Business by building on existing chemical sensitizer sales. The chemicals UTEC will focus on are key to the commercial explosives and munitions industries, and are synergistic with the company's licensing and contract research position. Chemical Distribution activities will be greatly facilitated by focusing on key supplier and customer contacts stretching from Asia to Latin America.

Further Growth, Revenue & Financial Plans

The Company's first priority is to strengthen UTEC's market position and build the Chemical Distribution Business. However, Lyon Capital is also exploring the options for additional financing needed for operating expenses, marketing, and the development or acquisition of additional synergistic technologies.

One such technology being evaluated is the destruction of hazardous chemicals. Lyon Capital is considering the formation of a Waste Destruction Division and is actively negotiating technology licenses that would allow it to enter that market. While waste destruction is a broad and competitive business, Lyon will capitalize on its expertise and background, and focus niche segments which are not currently well served. It is anticipated that the Waste Destruction Division will provide solutions for the low-volume high-margin processing of highly reactive, toxic and hazardous waste. Additional information will be provided once negotiations are completed.

The Company will also actively pursue New Technology opportunities and partnerships, leveraging its technology, intellectual property, and position in the industry. UTEC's Management has identified other potential opportunities, which it will aggressively pursue as a strategic growth strategy. Lyon Capital is growth-focused, with an overall strategy of Build, Buy or Partner with premier visionary companies.

Fortunato Villamagna Ph. D.,
CEO of Lyon Capital Venture Corp
For The Board of Directors and Management
Ken Liebscher - Director
"Safe Harbor" Statement Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.

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