MAINZ, Germany, June 26, 2006 (PRIMEZONE) -- Coattec Industries, Inc. (Pink Sheets:CTCK) announces that the average U.S. household has experienced significant increases in energy costs over the past year. According to the EPA and the Department of Energy, the average household spends $1,500 annually on energy, and these agencies predict the possibility of a 50% increase above that figure this year.
The Internal Revenue Service, earlier this month, issued an advanced notice outlining how commercial building owners and leaseholders can qualify for tax deductions by making buildings energy efficient through a provision of the Energy Policy Act of 2005. The Company's management believes that this will lead to the same tax incentives for residential builders. Coattec owns proprietary technologies that have primary applications in residential construction and the roofing industry, specifically for housewraps, roofing foils and ridge vents for homes.
Bernd Meinecke, President and CEO of Coattec Industries, commented, "The cost of energy used to power American homes is clearly on the rise and we believe that this trend creates very favorable market conditions for housing and roofing products in the U.S. market. Coattec's technologies can be utilized in the production of materials that can conserve significant amounts of energy in the form of electricity, oil and natural gases used to heat and cool the home. Fueled by policies outlining energy savings and tax credit programs set by the U.S. government, we believe that the use of efficient and cost-effective housewraps, roofing foils and other methods of insulation will soar in the coming years."
The U.S. Department of Energy estimates that nationwide, $20 billion a year in energy dollars could be saved if all structures were built with optimal ventilation. Research indicates that housewraps can reduce air leakage through a wall assembly from 40 to 93%, and that even light drafts can decrease the effective "R" value of insulation by 63% in an unwrapped house. Houses that are unwrapped can lose significant insulation during both the summer and winter simply due to air pressure differentials inside and outside of the home.
For further information, please visit www.coattecindustries.com.
About Coattec Industries, Inc.
Coattec Industries owns the exclusive license to technology to create a proprietary coating that has applications in various industries, primarily the residential housing market. The main use of the Company's coating will be for roofing foils and housewraps that provide insulation and a humidity barrier while inhibiting the growth of mold in new homes. The coating's antibacterial properties make it useful in other industries including the home improvement industry as filters for air conditioning units, the automotive industry as a potential replacement for PVC, and the glass industry for abrasion control.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.