TAMPA, Fla., Nov. 7, 2005 (PRIMEZONE) -- Internal Hydro International, Inc. (OTCBB:IHDR), an alternative energy company that developed a clean energy hydrogen power system, announced today that their joint venture partner, Cm2, anticipates that sales in Italy and other parts of Europe will create revenue streams representing more than double that which is available in the domestic U.S. market. Under the agreement, and as forecast by Cm2, IHDR will receive a minimum revenue stream of $14,000,000 in the first eighteen months.
IHDR's joint venture partner, Cm2, will assist in the sales and distribution of IHDR's Energy Commander Systems Unit (EC unit). Cm2 expects that each EC unit will generate annual revenues in excess of US$44,000. Cm2 expects to distribute between 300 and 600 units in their first fiscal year, in addition to domestic U.S. distribution. Under the joint venture agreement, IHDR shall receive approximately 35% of revenue plus approximately $2,500 per unit produced for European use as a one-time up front payment per unit sold as well as a large share of revenues gained from the EC units that are distributed in Europe. With a five to seven year life span, the EC unit, with a projected cost of about $7,500.00 per unit according to Cm2, will bring a 29-to-1 cost to revenue basis.
Due to the ecologically friendly energy policies surrounding the Green Certificate Market, the revenue stream available for alternative energy production is much larger than that in the U.S. Green Certificates (CVs) in Italy normally sell in excess of 100 euros per Megawatt Hour (100.00 euros/MWh), which is over $120.00 per MW hour, or $0.12 per Kilowatt hour. In the U.S. market renewable energy credits are valued at a fraction of such value, as low as $0.002 per Kilowatt hour. Certification of the EC unit for Green Certificates in Europe will be more predictable, and centralized than in the U.S. market, where certifications fall to private as well as governmental entities. Cm2 expects the EC unit to readily fit into the Italian Green Certificate market upon first unit completion, and then adopted readily into the remaining European green tag structure.
Cm2, (www.cmdue.it) based in Terni, Italy, has been operating in its present structure since 1988, providing turnkey energy production and related products to Italian utilities and industries. Providing power generation plants, electrical systems, and renewable energy products to customers such as Colgate Palmolive Europa, Siemens, Marangoni, and the Rome Airport, and provision of over 10 megawatts of photovoltaic systems throughout Italy. With a 30,000 square foot production facility, onsite engineering, and staff, Cm2 provides electrical power components throughout Europe.
Giovani Linari, of Cm2, states that Cm2's knowledge of the Italian and European laws and regulation will allow the immediate installment of the units in numerous locations (dams, aqueducts , thermal energy plants, and others) bringing a consistent boost and acceleration of the JV business plan for Europe.
About Internal Hydro
Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, that utilizes a patented technology, using waste water, fluid or gas flow from any source where flow pressure is present, and yet wasted, to create electricity. Internal Hydro has grown into a multinational enterprise with international contracts spanning over three continents. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro energy in the fragmented alternative energy marketplace. For more information, please visit the Company's Web site at www.InternalHydro.com.
Forward-Looking Statements: This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.