SOURCE: National Automation Services, Inc.

June 17, 2008 07:00 ET

National Automation Services Announces Bid for Its Second Arizona Based Automation Controls Company

Due Diligence and Negotiation of Terms With Acquisition Target in Final Stages NASV; Also Announces S-1 Filing Is Progressing

LAS VEGAS, NV--(Marketwire - June 17, 2008) - National Automation Services, Inc. (www.n-a-s-inc.com) (PINKSHEETS: NASV), a public holding company for regional automation control companies, today announced that due diligence and negotiations are in the final stages for its second acquisition in Arizona and the third for the Company. The Company's Acquisition Committee has approved the final negotiations with the Management of the Arizona based Control Systems Integration Company. The acquisition, when completed, will extend its activities in Arizona since the acquisition target is one of the largest competitors with Intecon, Inc. out of Tempe, Arizona, which is already owned by National Automation Services, Inc.

The Company, whose identity is being withheld until final contracts are signed, will add a significant customer base throughout Arizona and is expected to add an additional $1,800,000.00 in annual gross revenues to NAS, while increasing bottom line profitability by capitalizing on synergies between Intecon and the acquisition target. Contracts will be finalized this month.

The Company also announced that the filing of the S-1 is progressing while Management is working with our second subsidiary, Intecon, Inc., to assist in the preparation of the audit and interim reviews. The Board of Directors and our Management value having accurate and relevant financial statements which will provide our investors, shareholders, and the public a clear financial picture of the Company's consolidated operations. In conjunction, our parent company National Automation Services, Inc. and our first subsidiary, Intuitive System Solutions Inc., are also undergoing interim reviews which we are also working diligently to complete. Jonathan Woods, CFO of the Company, has been working hand in hand with Management to ensure all audits and interim reviews are steadily progressing and has been instrumental in the preparation of the S-1 which is anticipated to be filed in the near future.

Mr. Woods stated: "Although we are all very anxious for the filing of our registration statement to be completed which is a major step in the Company becoming fully reporting and propelling us off of the Pink Sheets to a higher trading venue, the audits and interim reviews of our acquired privately held companies need to be prepared thoroughly in addition to our post acquisition strategies being effectively implemented. While both of our wholly owned subsidiaries are undergoing an extremely rapid internal growth curve and our resources have been primarily focused on an aggressive acquisition expansion program, Management will continue in its concerted effort and will remain dedicated to preparing our initial public filing which is anticipated to be filed in the near future."

Bob Chance, CEO of the Company, stated: "One of our Company goals is to extend our reach in various markets through bolt on acquisitions, which are synergistic with our current operations in that market. The bid for the Arizona target is an example of the execution of this strategy, as it solidifies our dominance in the Arizona marketplace. With the addition of this company and its management to our team, the Company will establish a physical presence in the northern Arizona market, and give us competitive coverage throughout the state. We are pursuing a similar strategy in Nevada, as we review different targets that extend our dominance in that market, specifically Reno. Our remaining targets for this year include San Diego, San Francisco, and one in the Pacific Northwest. We felt it was important to establish a good base of operations in the western United States before moving to the East, although we have had preliminary discussions with companies located in Chicago, New York, Ohio, and Florida.

"We continue to add new talent with seven new employee's joining us in the past two months throughout the Company in order to make sure that our current operations continue to expand rapidly, while we execute our strategy."

Stay up-to-date with current events by joining National Automation Services' E-Mail Alert List. Join by clicking the following link: http://n-a-s-inc.ir.stockpr.com/information-request

ABOUT NATIONAL AUTOMATION SERVICES, INC.

From Hand Production to Automation Before the Industrial Revolution, virtually all goods were made by hand. With the Industrial boom of the 1900s, the automation and controls industry was born to improve the quality and reduce the costs of tedious, repetitive tasks in the industrial plants.

Immediately after World War II, computers were born, almost entirely for scientific purposes. By the early 60s, computers began to make their way rapidly into process control and production. Automated assembly lines took on more and more tasks, allowing for an increasing number of automated processes and adjustments. By eliminating tedious tasks usually performed by hand, the owners of a plant realized higher quality and more output which improved not only quality but competitiveness as well.

Today's Markets

Automation touches our lives without notice, from the food we eat, to the clothes we wear, to the building materials we use; and almost anything else we consume or come in contact with.

Accordingly, the markets of National Automation Services, Inc. are vast. They include waste/water treatment, airport security systems, bottling plants, power plants, metals, mining, breweries, food processing, tire making, textiles, plastics, and virtually all production activities.

Although there are a handful of very large automation and controls companies, the industry is highly fragmented with about 286 companies of modest size in the U.S. These companies are privately owned, local in nature, and total approximately $32 billion in annual gross sales.

A handful of larger automation companies dominate the market as they offer national, as well as worldwide, support for the Corporate and Government clients they serve. In total the automation industry in the U.S. exceeds the $400 billion mark each year, largely serviced by this handful of firms.

Where We Are Going

NAS intends to build a nationwide company through acquisitions and internal growth in this fragmented market. We believe that our growing company will retain healthy margins and produce attractive increases in earnings per share during the period of this Plan. Our estimate is that we will immediately produce cost savings of 12-15% on each acquisition, thereby driving consolidated EBITDA and earnings per share. Furthermore, NAS, by utilizing the expertise of the group, the sharing of national contracts, and proven revenue enhancement techniques, has the goal of doubling the gross sales of each acquisition in the first 12 months of the date of each acquisition.

The Company currently focuses on:

Industrial Automation and Control. NAS has an experienced staff of electrical and control engineers, as well as project managers, with experience in industrial automation and controls. The Company's business is currently focused in Nevada, Arizona, and Utah, but it intends to expand through internal growth and acquisitions throughout the U.S. during 2008.

Automation Manufacturing. The Company is a certified Underwriters Laboratories Panel fabrication facility. This nationally recognized regulatory body provides NAS with significant marketplace credibility for custom control panel assembly and fabrication to its clients.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the automation controls industry, the positioning of NAS in the market, the ability to integrate acquired companies and technology, the ability to retain key employees, the ability to successfully combine product offerings and customer acceptance of combined products, general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems, and whether NAS can successfully gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

Contact Information

  • CONTACT INFORMATION

    National Automation Services, Inc.
    Bob Chance
    2053 Pabco
    Henderson, NV, 89011
    (702) 642-7720

    Investor Relations Contact:
    David Donlin
    The Cervelle Group
    238 N. Westmonte Drive
    Suite 210
    Altamonte Springs, FL 32714
    (407) 475 9859