SOURCE: UTEC Inc.

June 13, 2007 06:00 ET

UTEC Inc. Announces New Contracts of $506,000 for Its Newly Formed Chemical Sales Group

FOX ISLAND, WA--(Marketwire - June 13, 2007) - UTEC INC. (PINKSHEETS: UTEI) -- Dr. Fortunato Villamagna, Ph. D., CEO of UTEC INC., announces UTEC INC., in furtherance of its GROWTH PLANS 2007 program, has 4 Contracts which total in excess of $506,100 with North American and International clients. Dr. Fortunato stated, "... we are on track to meet our $1.25 million target for 2007, with our confirmed contracts of $506,000 and our additional pending submissions. The pending submissions are future forecasts we are currently negotiating with repeat customers for delivery in 2007. Our staff and Partners believe that we will complete these successfully and surpass our Corporate Goal of $1.25 million for all of 2007. We may need to raise the bar in the next few months."

The Company previously announced that it had booked over $2 million in contracts for its ENERGETIC MATERIALS GROUP. UTEC INC. has executed a 5-year $1.8 Million contractual agreement with ORICA to provide Energetic Material technical services through September of 2011, and the Company has also signed a QC Services agreement with DYNO-CARTHAGE and an additional technical services agreement through 2008 with AMTEC to provide them with Energetic Material technical services.

Chemical Sales

      1. Supply Agreement
         $357,120 to be Shipped and billed in July 2007
         $115,320 to be Shipped and billed in September or October 2007

      2. XPAK Materials
         $16,875 to be billed in May 2007 (shipped)
         $16,875 to be billed in November 2007
Energetic Materials Contract Services Group

The Energetic Materials Contract Services Group is the core business base of UTEC INC. (PINKSHEETS: UTEI). The Company is committed to growing its base business and the Company's other research and development Groups.

About UTEC Inc.

Technology:

Over the past 50 years, the UTEC Laboratory has been involved in the research and development of successful commercial explosive products for use by the worldwide mining industry. The Laboratory has obtained 17 U.S. and foreign patents to cover its explosive technology. In the past ten years, many of the Lab's efforts have been devoted to developing effective methods for recycling surplus military energetic materials into successful commercial Blasting Agents.

Detonation Characteristics Testing:

UTEC operates a destructive test-site for conducting detonation characterization tests on various types of both commercial and military explosive products and initiation systems. These tests are conducted on a contract basis for other domestic and international explosive manufacturers, as well as the consumers of these explosive products.

Analytical Testing:

UTEC operates an analytical, which is commonly used to evaluate various explosive product compositions and explosive raw materials. These services are normally performed in support of UTEC's explosive manufacturing licensees, as well as other explosive manufacturers and users.

Hazards Safety Testing:

The UTEC Laboratory has the capabilities of conducting a number of the hazards classification tests, which are described in the UN "Recommendations on the Transport of Dangerous Goods Manual of Tests and Criteria" and the DOD Mil-Std 1751A. These tests are normally conducted for eventual regulatory classification of explosive materials and products as well as energetic assemblies used in the automobile safety device industry.

Over the past five 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. 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.

Key strengths and expansion of the UTEC GROWTH PLAN 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.
Fortunato Villamagna Ph. D.,
CEO of UTEC INC. (PINKSHEETS: UTEI)
For The Board of Directors and Management
"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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