RIVERBANK, Calif., July 5, 2005 (PRIMEZONE) -- Itec Environmental Group, Inc. (OTCBB:ITEC) is pleased to announce that last week Itec received confirmation that the $2,000,000 low-interest loan from the California Integrated Waste Management Board (CIWMB) was placed in escrow with First American Title of California in connection with the Recycle Market Development Zone Loan (RMDZ) Program. The loan was approved by the CIWMB in August of 2004. Release of the $2,000,000 to Itec is conditional upon Itec's raising "matching funds" of $2,000,000.
Proceeds from the loan will be used to complete production of Itec's first Eco2(tm) Environmental System Plant. The Eco2 system uses a patent pending process to clean PET and HDPE post-consumer plastics more efficiently than Itec's competitors to the benefit of both Itec and its customers. Itec expects to begin operating its first Eco2 Environmental System Plant within the next 9 months. In this regard, Itec is working with its investment bank, Brean Murray & Co., Inc., to raise $7,500,000 to initiate full operations and match the $2,000,000 loan from the CIWMB.
"We are very pleased with this gesture of support and confidence from the CIWMB," stated Gary De Laurentiis, Chairman and Chief Executive Officer of Itec. "The Itec team and its several strategic partners have worked diligently over the past year to bring Itec's Eco2 system to the market. With the transfer of the $2,000,000 loan funds into escrow, we believe we are one step closer to accomplishing our goals and implementing the first phase of our business plan," added Mr. De Laurentiis.
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 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 209-881-3523.
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 attract and retain key executive officers and the professional advisors necessary to guide us through our corporate restructuring; (4) the successful consummation of the $2,000,000 loan through the California Integrate Waste Management Board; (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; (8) the Company's ability to secure raw plastic and produce and sell a large quantity of its PET and HDPE flake; and (9) other factors over which we have little or no control.