OAKDALE, Calif., March 14, 2005 (PRIMEZONE) -- Itec Environmental Group, Inc. (OTCBB:ITEC) announced today that it signed a Letter of Intent to acquire all of the issued and outstanding equity securities of Rose Waste Systems (RWS) of San Carlos, CA, an 18-year-old engineering and sales company with anticipated revenues in 2005 of at least $7 million, in exchange for 1,000,000 shares of common stock of Itec. RWS has been profitable since its inception.
RWS supplies its clients with a comprehensive array of recycling, refuse and scrap handling equipment, providing customers with sales and service excellence and specializes in bringing technologically advanced, high performance and cost effective systems to its clients. Typical clients are leaders within private industry as well as governmental agencies. RWS has over 100 successful installations in both the domestic and international markets and represents 25 manufactures located throughout the world.
George Gitschel, the Founder and President of RWS, has over 24 years experience in the industry. "We believe the synergy that exists between Itec and RWS will serve as a catalyst for the growth of both Itec and RWS," stated Mr. Gitschel. "We expect to dominate our respective industry sectors by developing client relationships based upon excellence in every facet," added Gitschel.
Upon consummation of the acquisition of RWS, Mr. Gitschel will continue as President of RWS in addition to becoming Vice President and a member of the Board of Directors of Itec. Mr. Gitschel will also assist Itec in supplying raw materials to customers of RWS. Gary De Laurentiis, President of Itec stated, "The prospect of Mr. Gitschel joining the Itec Group is very exciting. We believe his management expertise and insight into the recycling industry will facilitate Itec's growth in both the long and short term. George has an excellent reputation in the industry and is very well respected," added Mr. De Laurentiis.
Consummation of the acquisition of RWS, pursuant to which RWS would continue as a wholly-owned subsidiary of Itec, is subject to the satisfaction of certain conditions including, but not limited to, (i) execution of definitive agreements, (ii) Itec's raising of $3,000,000 of working capital and (iii) receipt by Itec of the $2,000,000 loan from the California Integrated Waste Management Board (CIWMB).
About the Company
Itec Environmental Group offers solutions to pressing environmental problems faced by public agencies and private entities involved in the recycling of plastics. In a research partnership with Honeywell FM&T, Itec has developed and successfully commercialized a revolutionary new system for the recycling of plastic containers. Its proprietary Eco2(tm) System costs 30% less to operate, uses no water, removes all contaminates and odors from the finished flake, is closed-loop and thus non-polluting, and produces no toxic by-products.
Please visit our web site at http://www.iteceg.com. Any interested parties wishing to be included in Itec Environmental Group's mailing list, please email your request to info@iteceg.com or Contact: Gary M. De Laurentiis 209-848-3900.
Cautionary Warning Regarding Forward-Looking Statements
This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to retain the professional advisors necessary to guide us through our corporate restructuring; (4) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders, creditors and/or former or current investors; (7) the Company's ability to comply with federal, state and local government regulations; and (8) other factors over which we have little or no control.