SOURCE: Vega Promotional Systems, Inc.

March 12, 2010 10:20 ET

Vega Enters Into Agreement to Sell 100% of the Production From Georgia Manufacturing Plant

LONDON--(Marketwire - March 12, 2010) -  VEGA PROMOTIONAL SYSTEMS, INC. (PINKSHEETS: VGPR) announced today it has entered into an Agreement to sell bio-coal to a European energy firm.

Vega has entered into an Agreement with Austrian based, ECEM Salzburg Energy and Environment Consulting GmbH to sell 100% of the bio-coal produced at the Company's Georgia facility. ECEM will resell the product to power companies throughout Europe.

Vega is in the process of building a biomass production facility in the State of Georgia, that when completed will manufacture bio-coal made from waste biomass using process technology called torrefaction. The 40,000 square foot manufacturing facility will be located in Tifton, Georgia and will use organic waste bi-products located within Georgia's Bioenergy Corridor. Once the Georgia facility is completed, it will have the capacity to produce approximately 125,000 metric tons of bio-coal annually. 

The five year deal will generate approximately $17 million in annual revenue to Vega. 

"We are very excited about our new relationship with ECEM," stated Michael Molen, Chairman of Vega. "This is a huge deal for our company. Having a five year Agreement in hand to sell our product allows us to move forward with the construction of the Georgia plant much faster than originally planned. Signing this deal before the plant is completed confirms what we've been saying all along. The worldwide demand for our product far outweighs the supply. We are now considering a second production line that would run parallel to the first line and double the plant's capacity. We will have many more details about this project in the coming days."

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect" "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.

Contact Information

  • CONTACT: Vega Promotional Systems, Inc.: 800-481-0186