Seprotech Systems Incorporated

Seprotech Systems Incorporated

November 22, 2007 17:37 ET

Seprotech Announces Fiscal Year End Results-Profitable Year and 140% Increase in Revenue

OTTAWA, ONTARIO--(Marketwire - Nov. 22, 2007) - Seprotech Systems Incorporated (TSX VENTURE:SET)("Seprotech") announces the following unaudited results for the fourth quarter 2007 and audited results for the fiscal year ended August 31, 2007.

Three Months Ended Year Ended
August 31 August 31
2007 2006 2007 2006
(unaudited) (unaudited) (audited) (audited)

$000 $000 $000 $000

Revenue 2,264 507 7,859 3,221

Net Income (Loss) 124 (383) 222 (1,044)

Earnings (Loss) per share 0.00 (0.01) 0.01 (0.03)

Shareholder Equity at end of year 1,739 410

Cash at end of year 912 -

"It has been an exciting year for Seprotech," said Martin Hauschild, President and CEO of Seprotech. "Management is pleased with the financial results for 2007 combined with the operational improvements and technological breakthroughs we have achieved this year."

"We have accomplished our key goal of recycling wastewater to the highest international water quality standards with the launch of CrystalBlue ™," continued M. Hauschild. "Combined with a number of key agreements for production and distribution, an OEM agreement with Toray of Japan and the acquisition of P.J. Hannah Equipment Sales Corporation (scheduled to close on 03 December 2007), Seprotech is well positioned for growth."

Seprotech recently launched CrystalBlue™ at WEFTEC® in San Diego, the largest water quality exhibition in the world. The power savings of up to 60% over competitive technologies provides an environmentally "Green" alternative and a cost effective solution for customers in both the developed and developing world. The recycled water can be employed for groundwater recharge, irrigation, and industrial uses allowing high cost drinking water to be used for human consumption. Seprotech has filed for CrystalBlue™ patent protection and other technical releases relating to this technology will follow.

"In conjunction with the launch of CrystalBlue™, Seprotech entered into an agreement with Toray of Japan for the incorporation of membranes into the technology," added Mr. Hauschild. "Response from our customers has been extremely positive and two CrystalBlue systems with Toray membranes are already under contract." Toray ( is a publicly traded Japanese multinational with over $ 12 Billion USD in revenue last fiscal year and 36,000 employees worldwide.

"In preparation for the launch of CrystalBlue™, Seprotech entered into a number of important distribution agreements covering North and Latin America," said Mr. Hauschild. "Of strategic importance, especially in light of the strong Canadian currency, has been our production and distribution agreement with Valsi of Mexico. The agreement opens both established sales channels and leverages NAFTA by shifting manufacturing of high cost components to facilities in Guadalajara." Valsi is a major Mexican corporation having over 400 offices and manufacturing sites throughout Mexico.

"Another facet of Management's growth strategy centers on the acquisition of P.J. Hannah Equipment Sales Corporation, based in British Columbia," continued Mr. Hauschild. "Seprotech's customer base in the resource sector has been growing steadily and this deal provides Seprotech with essential coverage in Western Canada. In addition, the acquisition will provide skilled staff and distribution both key elements in achieving rapid growth for Seprotech," concluded Mr. Hauschild.

"To capitalize on the launch of CrystalBlue™, the Board has instructed Management to seek new strategic partnerships, to strengthen Seprotech's existing markets, and to expand beyond Seprotech's traditional international sales regions," said Justin Connidis, Chairman of Seprotech. "In addition, Seprotech has substantially increased its capital base and is now free of debt. We are working to increase visibility in the investment community and broaden our base of institutional shareholders in support of our strategy for growth," concluded Mr. Connidis.

Seprotech is a provider of pre-engineered water and wastewater treatment plants to the land development, resource sector and military market place, including CrystalBlue membrane-based water recycling systems and the ROTORDISK® wastewater treatment systems.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.

Contact Information

  • Seprotech Systems Incorporated
    Mr. Robert J. Searle, CFO
    Investor Relations
    613-731-0851 (FAX)