Pioneering Technology Corp.

Pioneering Technology Corp.

October 16, 2006 12:52 ET

Pioneering Technology Inc.'s Year End Update

MISSISSAUGA, ONTARIO--(CCNMatthews - Oct. 16, 2006) - Pioneering Technology Inc. (TSX VENTURE:PIO) of Mississauga, Ontario, ("Pioneering"), whose fiscal year ended September 30th, 2006 has commenced its year end audit process and expects to file audited financial statements and related MD&A within the required regulatory period. Currently the Company is compliant with all required tax, GST, and sales return filings.

Since going public this spring, Pioneering has focused on putting the fundamentals in place to drive the business forward with a strong foundation. The company has restructured and assembled a world class Management Team and Board of Directors; enhanced its current product offerings and manufacturing partnerships; and positioned its commercial products for success in the coming year.

Over the next twelve months Pioneering is focused on selling Safe-T-element™, the company's best immediate term revenue opportunity, while placing secondary emphasis on securing deals for the company's other product offerings and advancing the development of the Hydro Free Furnace Fan project.

Pioneering CEO Kevin Callahan stated, "While, the company has experienced some of the challenges associated with introducing new technology, our hard work specifically over the past six months is starting to pay dividends. We are very excited by the tremendous demand and momentum we are now experiencing from the success of our U.S. roll out for Safe-T-element and with the progress we are making with our other product offerings." Callahan went on to say that "the focus for the company in the coming year is on maximizing sales revenue from existing products and creating value for our shareholders."

The Safe-T-element™ cooking system (the only product of its kind designed to help prevent the #1 cause of household fire in North America and reduce electricity), is now poised for a breakaway year in FY 2007.

Safe-T-element™ currently has a multi-residential customer base that represents potential sales of over $42 million. 20 dealers are now actively selling the product and that number is growing each week. This fall, Safe-T-element™ is being presented at major national seniors, universities and low income housing trade shows to key decision makers generating many new customers and channel sales/distribution opportunities.

This summer Safe-T-element™ was recognized at the World Fire Safety Expo in Orlando as one of the most popular new fire prevention innovations and received an award from the U.S. Home Safety Council in Washington DC for Product Innovation for Consumer Safety.

October is Fire Prevention month in North America and this year's theme is focused entirely on the dangers associated with cooking fires. "Cooking equipment fires create the worst record for fires in the United States. Safe-T-element™ will reduce that unacceptable toll when installed in homes across America," James F. McMullen, Retired California State Fire Marshall, recently stated.

The U.S. Department of Homeland Security (DHS) recently announced fire prevention grants of over $32 million for products like Safe-T-element™, to be awarded in December to the channels Pioneering targets. The product has been pre-qualified with the DHS. We recently recruited Deputy Fire Marshall, Earl Diment form Oregon as our Chief Safety Officer. Mr. Diment who has in the past sat on the grant approval committee, is currently working with eligible, high profile organizations to secure funding for Safe-T-element™. To date, we have 26 organizations who are submitting funding proposals.

Pioneering's patented Powergrill™ remote ignition system for gas appliances has added new and innovative functionality putting the user in complete command of the grill. Pioneering is currently negotiating a development deal with a leading grill manufacturer.

Pioneering's patented Hydro Free Furnace Fan technology, funded in part by a contribution agreement with the National Research Council Canada, was reviewed by NRCan's technical staff confirming the successful completion of the company's Phase One prototype, proving the viability of the concept and paving the way for future development and commercialization.

Pioneering's patented Battery Eliminator™ technology was enhanced to create the BEII, making the technology universally adaptable across multiple product lines and valve configurations. The company is currently pursuing new licensing deals with control and valve manufacturers.

Pioneering has many other product and acquisition opportunities that will support future growth but are on hold as it focuses all of its efforts on delivering immediate and sustainable revenue from its current product base.

About Pioneering Technology Inc.

Pioneering is an energy smart product innovation company based in Mississauga, Ontario, that creates platform and derivative technologies that manage, control and transform heat into useful forms of energy.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Contact Information

  • Pioneering Technology Inc.
    Kevin R. Callahan
    President and CEO
    (905) 712-2061 ext. 222
    Pioneering Technology Inc.
    David G. Speck
    Investor Relations
    (416) 368-8464