HOUSTON, Aug. 10, 2005 (PRIMEZONE) -- Allied Energy Corporation (Pink Sheets:ALNG) ("Allied") and FloodSmart, Inc. ("FloodSmart"), today announced that they have signed a Letter Of Intent ("LOI") with respect to FloodSmart's acquisition of Allied in a reverse merger transaction. Under the non-binding LOI, FloodSmart(tm) and Allied will proceed to negotiate a definitive merger agreement.
FloodSmart(tm) currently is a privately held company engaged in the development of flood remediation solutions, utilizing proprietary techniques and new technologies. Prior to FloodSmart Hydraulic Lift Systems, the options were few. The traditional method has been commonly called the "jack and shimmy" technique and is, for a broad range of reasons, impractical and/or unrealistic, especially considering the cost and inconvenience. By the way, the higher the structure needs to be "jacked and shimmied" the costs go up considerably, whereas the FloodSmart Hydraulic Lift Systems can raise a home 10 inches or 10 feet with minimal difference in costs, as well as a greatly reduced inconvenience to the occupants.
The FloodSmart, management and scientific, team is headed by Ken J. Kelso, the Company's founder, with over 30 years of experience in developing patented inventions.
In addition to the binding merger agreement, the acquisition is conditioned upon completion of the parties' due diligence, regulatory, and other approvals of the transaction.
"FloodSmart places paramount importance on the quality and commercial value of the technology related to our proprietary process. Becoming a public company will allow FloodSmart to be more competitive in several ways. We will be in a more advantageous position for retention and recruiting purposes, and we will be able to structure acquisitions with stock and cash that would enhance our business and broaden our revenue stream, pending due diligence," stated Ken Kelso, FloodSmart president and CEO.
Jay Yano, CEO of Allied, added, "I can think of no other public company operating within this space. We look forward to FloodSmart executing its business plan and adding value to affected communities, as well as our shareholders. Investors seeking to participate in this innovative and explosive growth area will have to look; FloodSmart will be operating in a market which is currently underserved."
For further information, www.floodsmart.net.
About FloodSmart, Inc.
FloodSmart, Inc. is a pioneer in the field of flood remediation, using patented technology to elevate structures above the defined flood plain certification for potential flood loss structures. The Company, based in Houston, is dedicated to helping people and communities which are positioned in the floodplain. FloodSmart Hydraulic Lift Systems, a new patented process that can lift structures and occupants out of harm's way. Whether elevation certificate calls for 10 inches or 10 feet, FloodSmart solutions are superior to the old "jack and shimmy" method. The FloodSmart proprietary process calls for a tunnel under the structure, set adjustable piers at strategic points, and raise the home to a predetermined "safety zone" and its new elevation, above the flood plain.
FloodSmart focuses primarily on offering a solution to the problem of repetitive flood loss by elevating structures at rates which, typically, meet the cost-benefit analysis ratios set by FEMA, as opposed to the old "jack and shimmy" method which rarely meet cost-benefit analysis ratios. As of the end of 2002, there was $652.7 billion of flood insurance coverage under the federally sponsored National Flood Insurance Program (NFIP) representing more than 4.5 million structures. Because all are within the floodplain, all are candidates for the FloodSmart structure elevation process. Statistics indicate that about 25 percent of the insured base have experienced flood-related claims. For more information, please contact us or visit www.floodsmart.net.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development, and results of the Company's business include, but are not limited to, fluctuations in financial results, availability, and customer acceptance of our products and services; the impact of competitive products, services and pricing; general market trends and conditions; and other risks detailed in the Company's SEC reports.