SOURCE: National Automation Services, Inc.

April 16, 2008 07:00 ET

National Automation Services, Inc. Adds Three New Engineers to Its Staff to Alleviate Contract Work in Progress

The Company Expands Into a New Market to Meet Growing Demand

LAS VEGAS, NV--(Marketwire - April 16, 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 it has recently added three new engineers to its staff to help alleviate the current backlog of projects due to a higher-than-expected demand for its services and a substantial increase in bid requests for the products and services provided by the Company and its subsidiaries. Current signed contracts and work in progress is approximately $5 million and is expected to increase to a constant $10 million by the end of the year, without considering work in progress and bid pipelines acquired as part of its continuing national expansion program.

The Company recently hired engineers having over 39 years of combined experience in the automation controls industry. The Company plans to add more staff as it executes its internal and external growth plans, which has been made feasible by securing a $10,000,000 acquisition funding commitment from Trafalgar Capital. The Company has utilized $1,500,000 of such debt commitment, which leaves sufficient availability to acquire new automation companies around the country, several of which are in due diligence; as well as hire additional staff and open satellite offices to ensure that the current companies can increase the number of projects bid upon and still ensure a timely and satisfactory completion of awarded contracts. The first of these scheduled internal expansions will be Intecon's expansion into the Tucson, AZ, market through the opening of a satellite office, where there is high demand for the company's services. It is expected that the new satellite office, which will coordinate with and be managed by the Phoenix home office, will open by June.

Robert Chance, CEO of NASV, in describing the internal and external expansion stated: "The recent expansion of Intecon, both internally and to the Tucson market, is a perfect example of what the future of NAS will be. Not only we will acquire new companies throughout the U.S., but we will also expand those companies both internally and into related markets, such as Intecon expanded from Phoenix into Tucson. By expanding within the same geographic area when demand dictates, Intecon taps into a new market, adding additional revenue streams, while not incurring the expense of building support staff, which is provided by the home office. NAS plans to grow significantly in the rest of 2008 by using this three-pronged approach (internal expansion, opening satellite offices and making synergistic acquisitions) to secure new revenue streams at higher profit margins."

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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