VANCOUVER, British Columbia, Oct. 3, 2005 (PRIMEZONE) -- S2C Global Systems Inc. (Pink Sheet:STWG), is pleased to announce it has concluded the initial market trials and beta testing of its proprietary 5-gallon bottled water vending systems, the "Aquaduct". The testing period allowed S2C to analyze each of the vending unit's mechanics, electronics and consumer interaction with its touch screen technology. Results of the trials have validated consumer adoption to the vending units at a much quicker pace and the vending units mechanically performed without any serious mechanical flaws in design. Based on successful field trials, the Company will immediately begin a North American rollout of the vending units, the "Aquaduct".
The Aquaduct system was developed in response to the needs of suppliers and resellers in the supply chain of 5-gallon bottled water, such as Groupe Danone of North America and Loblaw Companies Limited. Groupe Danone reported that of the 449 to 680 million 5-gallon bottles of water that were sold to homes and offices in North America last year, the user now picks more than half up at a retail location. The handling of full and empty 5-gallon jugs is costly because of their size and weight. From the plant to the consumer, the full bottle may be handled as many as seven times utilizing labor, equipment and fuel, minimizing profit margins. At retail locations loading docks, storage and retail floor space are carefully managed to optimize return on investment (ROI) of the products going through; 5-gallon bottled water at current market prices is generally reported as not being within the ROI tolerances. The Aquaduct system allows the distributor to abandon the traditional supply chain and have their product automatically moved from the production line to the truck, from the truck to the consumer pick up point; potentially returning as much as 60% of the overhead to the operating profits.
The Aquaduct fits in a parking stall and as such can be placed on a retailer's lot in order to satisfy their customer's ongoing demand for product; however they need to have no further involvement in the product other than to collect a fee for the parking stall. With 24/7 access and online inventory control of the Aquaduct, the distributor now has the ability to modify their delivery to that unit to non peak traffic hours and with less frequency.
S2C Global Systems, Inc. is able to insert itself between the distributor and the consumer earning revenue off of each 5-gallon bottle sold using the Aquaduct system. Trucks outfitted with the Aquaduct delivery system also reduce delivery costs for Home and Office (HOD) water sales and as such S2C's earnings are not-limited to the retail segment only. According to Rod Bartlett, S2C's President and CEO, "S2C Global Systems anticipates installing more than 800 Aquaduct units over the next two years with potential revenues from these units exceeding $30 million dollars."
The North American Market. 54% of the 7.3 billion gallons of water sold in the United States are take home, with an additional 17% being delivered as reported by the nations' leading seller of packaged water, Nestle Waters. The U.S. bottled water industry sold $9.2 billion dollars in 2004 and is forecasted at $9.8 billion for 2005, according to the Beverage Marketing Corporation. Nestle Waters reports one third to one half, depending on the market, of all bottled water sales are large-gallon formats. Using sales statistics for the U.S. from the Beverage Marketing Corporation 2005 Report, between 449 and 680 million 5-gallon bottles of water were sold last year.
New Officer and Director. Harold Forzley joined the company as CFO effective September 1, 2005. Mr. Forzley brings with him a unique set of experiences, having most recently served as a Special Advisor to a private international furniture manufacturer out of Mainland China. Prior to that, Mr. Forzley served as Management and Director for a variety of publicly traded companies, "Harold brings great talent and skills both in finance and in business leadership," said Rod Bartlett, S2C's President and CEO. "Having been both an officer and director of a variety of companies gives Mr. Forzley the ability to contribute broadly to our finance, operations and business strategy." Mr. Forzley holds a commerce degree from Simon Fraser University and a Chartered Accountant designation earned through his 8-year tenure at Thorne Riddell (now KPMG).
About S2C Global Systems
S2C Global Systems Inc. designs and develops highly efficient automated distribution systems to move products directly from suppliers to consumers. Established in 2004, S2C (www.s2cglobal.com) has built the world's first commercial vending system that accepts back return containers. S2C's first system known as the "Aquaduct"(tm), delivers prepackaged 5-gallon bottled water from the bottling plant to the vending unit.
ON BEHALF OF THE BOARD S2C Global Systems, Inc. Mr. Rod Bartlett, CEO
To find out more about S2C Global Systems, Inc (Pink Sheets:STWG), visit our website at www.s2cglobal.com.
Forward-Looking Statements
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to product development, business prospects and development of a commercial market for technological advances are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with new business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.