OAKDALE, Calif., Jan. 17, 2003 (PRIMEZONE) -- The first of six contracted first Generation-2 ECO2(TM) Environmental Systems was delivered to Paliano, a suburb of Frosinone in south Rome, to Italian company OPT sr1 by ITec Environmental Systems, a division of ITec Environmental Group (OTCBB:ITCV).
"We are pleased to be able to make this announcement," said Gary de Laurentiis, ITec President. "ITec has been working towards this event for four years."
"This system represents $480,000 in revenue," continued de Laurentiis. "ITec is now a revenue-generating company making significant progress in the field of environmentally sound oil container recycling."
ITec has purchase orders for five additional units, bringing the backlog on order to $2,400,000.
Valued between $500,000 and $1,000,000 U.S. dollars, each ECO2(TM) Environmental System can clean up to 1,000 pounds of contaminated plastic per hour. Each system uses CO2 cleaning instead of water to remove dirt, labels, glue and contaminates such as oil and pesticide residue from plastics.
"Our sales agreements for all systems have included additional annual licensing fees to be paid to ITec in exchange for exclusive territorial rights, software licenses, technology upgrades and extended warranty protections, translating into $325,000 over five years per system," stated de Laurentiis. "These long-term arrangements ensure ITec will be generating income long after the product has been delivered."
"With this first delivery, OPT, Inc. is preparing its system to begin processing the used motor oil bottles which have been collected to date by the end of January."
ABOUT OPT
The Italian Company, OPT srl, is part of the Italian young entrepreneur program funded by "Law 44". Under the program, young entrepreneurs receive loans from the Italian Government to start new businesses in Italy. OPT, Inc. has an additional system ordered in the mobile configuration that will be delivered mid-2003.
OPT will install the system in their facility in Paliano, a suburb of Frosinone, that is south Rome.
Generation-2 ECO2(TM) Systems are manufactured for the European market by Cool Clean Technologies, Inc. in the Czech Republic and for the remainder of the world in the USA, under an exclusive supply agreement.
ABOUT ITEC
ITec Environmental Group's (ITecEG) principal business activities are conducted through three operating divisions: ITec Environmental Systems (ITecES), ITec Recycling Services (ITecRS) and ITec Management Corp. (ITecMC), and one subsidiary: ITec Plastics (ITecP).
ITecES is responsible for sales and marketing of the ECO2(TM) Environmental System "The ECO2(TM) System." The ECO2(TM) System is new, cost effective, environmentally sensitive plastic recycling technology, which uses CO2 cleaning instead of water. Additionally, ITecES sells all the related auxiliary equipment for the ECO2(TM) System.
ITecRS is responsible for the sale of ITec's granulators for the used motor oil bottle recycling programs and services for the transportation of the 55-gallon drums of ground used motor oil bottles to ITecP recycling facilities. ITecRS has implemented these programs in California and Europe.
ITecMC is responsible for the management of each plastic recycling plant. This includes designing, building, training personnel and overall management each plastic recycling plant, purchasing raw materials and the resale of the finished product. ITecMC will train plant managers and key personnel required for each plant.
ITecP will create plastic recycling plants throughout the United States. These plants will operate as joint ventures or partnerships, with ITecEG retaining an interest in each plastic recycling plant. Each plant will recycle Post Consumer High-Density Polyethylene (HDPE) and Polyethylene Terephthalate (PET) plastics using the ECO2(TM) Environmental System and sell clean extruded pellets and/or end-products in the after market. Each plant offers excellent environmental investment opportunities
ITec Environmental Group offers many solutions to pressing environmental protection problems faced by municipal, governmental and industrial groups through their plastic recycling plants, used motor oil bottle recycling programs, sales and marketing of environmental technology, and environmental investment opportunities.
SAFE HARBOUR STATEMENT
This press release contains certain "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1965, including statements concerning the anticipated delivery dates. This news release also contains forward-looking statements within the meaning of Section 37A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual events or results may differ materially from those referred to in such statements. The company relies on third-party vendors to manufacture its system, not yet introduced commercially. Risks and assumptions include, but are not limited to, the ability of its vendors to manufacture and deliver a successful commercial version of its principal product, as well as the company's ability to generate customer demand, to achieve acceptable pricing, to respond to competition, to manage growth, to make timely payment on it outstanding obligations, and to manage regulatory and legislative developments that affect its system.
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