ZEOX Corporation

ZEOX Corporation

March 19, 2008 06:00 ET

ZEOX Enters Final Stages of Butte, Montana Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2008) - Mr. LuVerne E.W. Hogg, President and CEO of ZEOX Corporation (TSX VENTURE:ZOX), is pleased to announce that the Company has entered into two agreements for the completion of the acquisition of the processing facility in Butte, Montana.

Pursuant to a letter of intent dated effective November 15, 2007 with Machinery and Equipment Co. Inc. The Company has completed the purchase of the 66" Raymond Roller Mill and associated processing and product storage plant and equipment located in Butte, Montana for the amount of US$2,000,000.

ZEOX will operate the Butte facility under a lease option agreement, dated December 20, 2007, with MSE Technology Applications, Inc. ("MSE") covering a 7.985 acre portion of MSE's facility in Butte, Montana, with the option to purchase the 7.985 acres plus an additional adjacent 26 acres for a total consideration of US$1,500,000. The term of the lease option agreement is from January 1, 2008 until June 30, 2008. The Company's lease payments will also apply to the purchase price. To date US$300,000 has been paid against the purchase price. A balance of US$1,090,800 is payable on June 30, 2008. The Company currently has adequate cash reserves to cover the payout obligations under this arrangement and no additional external financing needs to be secured. Operating permits are in place.

The Butte facility is a key strategic acquisition for the advancement of the business plans of the Company. It will provide much needed production capability estimated to exceed 120,000 tons per year. As well it is a key location from which to distribute product into markets in Canada, the United States and Asia. Processing is scheduled to commence in the second quarter of 2008.

For a more complete business and financial profile of ZEOX, management encourages interested parties to view the Company's documents posted on Sedar.com.

On behalf of the Board of Directors

LuVerne E.W. Hogg, President & Chief Executive Officer

Legal Notice Regarding Forward Looking-Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that the acquisition of the processing facilities are a strategic acquisition that will be beneficial to the future performance of ZEOX. Factors that could cause actual results to be materially different include that the Company may take longer to commercialize than expected, customers may not be able to utilize the Company's products in commercial volume, competitors may provide better or cheaper alternatives and that even if commercialized the Company's products may not provide profits to the Company. Investors are cautioned against placing undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • ZEOX Corporation
    LuVerne E.W. Hogg
    President & Chief Executive Officer
    (250) 767-0343
    (250) 767-6134 (FAX)
    Email: vhogg@zeoxcorporation.com