HOFFMAN ESTATES, Ill., Dec. 8, 2004 (PRIMEZONE) -- American Petroleum Group, Inc. (OTCBB:AMPE) announced today that it has entered into a Letter of Intent with Oilmatic Systems LLC of East Orange, New Jersey ("Oilmatic"), for American Petroleum to acquire Oilmatic in a stock for stock transaction.
As part of the transaction, Michael Allora, President of Oilmatic, will assume, after the closing of the transaction, the position of President and Chief Operating Officer of American Petroleum as well as Oilmatic. Mr. Allora has extensive experience in the delivery of bulk liquids and related products to businesses, retail and wholesale, in the restaurant field.
Oilmatic is a food service distribution company that supplies a closed loop Bulk Cooking Oil Supply and Management system. Its patented state of the art handheld Dipstick(R) design dispenses and removes cooking oil with the simple push of a button at the deep fryers. The system also consists of separate fresh oil and waste oil tanks. A key switch allows management to control unnecessary oil fills and disposals. This system completely eliminates the practice of employees manually removing hot used oil which significantly reduces slips, falls and burns, as well as the hard labor of unloading and retrieving heavy boxes of oil. Additionally, the system eliminates hazardous grease spills both inside and outside of the store that cause grease fires and grease trap build-ups that pollute our environment.
James W. Zimbler, Interim President, stated, "The obvious benefits to Oilmatic's system is that it will revolutionize the kitchens of restaurants, both nationally and internationally. However, in my opinion, the benefit and advantage of Oilmatic to its clients is that the direct cost savings the restaurant owners will receive by not paying for the removal of the used grease or "waste-oil," not to mention the efficiency aspect it provides to them. In addition, the "waste-oil" benefit to Oilmatic's business becomes an exciting opportunity for American Petroleum, thus creating another line for American Petroleum to explore, creating an alternative energy product for used or "waste-oil" product."
American Petroleum Group, Inc., formerly known as American Capital Alliance, Inc. is a corporate holding company in several aspects of the petroleum industry. Primarily in the motor oil industry, such as bulk motor oil distribution, as well as the bottle motor oil industry. American Petroleum Group's management has made their mark in the Private Label Bottling sector for some of the major oil companies in the U.S. American Petroleum Group also plans to exploit several opportunities for Private Labeling of Motor Oils for several well know retail chains throughout the United States, as well as several anti-freeze and brake fluid private distribution agreements for a few well known national automotive repair facilities. Another big area for growth is in the recycled or "uncombusted" oil industry, through a new marketing relationship in Michigan, that the Company plans to launch in late fall 2004.
The statements which are not historical facts contained in this press release are forward looking statements that involve certain known and unknown risks and uncertainties, including but not limited to, changes in the market for Internet or distribution services, regulatory and technological changes, economic factors, increased competition, foreign currency devaluation, foreign market risk, and the nature of supplier of customer arrangements which become available to the Company in the future. The Company's actual results may differ materially from the results discussed in or implied by any forward-looking statement. The words "intend," "expect," "should," "project," and "anticipate," and similar expressions identify forward looking statements. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date they were made.
For more information contact our Interim President, James W. Zimbler at (814) 234-0121