MOSCOW, Jan. 10, 2008 (PRIME NEWSWIRE) -- To the Shareholders of NNRF (Pink Sheets:NNRI),
We would like to take this opportunity to thank you for your support during 2007. We believe that the company has made significant strides in its first 18 months of operations. This letter is intended to provide an overview of the industry in which NNRF operates and activities of the company during 2007.
We want you to know that your Chairman Larry McQuade, President J. Holt Smith, the Board of Directors and the officers of NNRF are fully committed to implementing the company's business plan and honoring its fiduciary responsibility to its shareholders. If any shareholder has an issue or concern we implore you to contact the company and a correct and accurate response will be given.
NNRF's business model is to invest and operate in these strategic sectors of the nuclear industry:
* Manufacture and supply of specialized components and control mechanisms used in Russian designed nuclear power plants. NNRF is investing in key companies in this sector. * Remediation and decontamination. The Company has exclusive rights to proven technologies that encapsulate radioactive material thus allowing remediation work to be carried out. * Radiation shielding. NNRF has its own proprietary material that shields against radiation created in nuclear power plants, medical facilities and laboratories. NNRF's shielding material is designed to replace lead which is used worldwide as a shield against radiation and has been mandated for replacement by 2010 throughout the European Union due to lead's toxicity. * Radioactive and toxic waste management. The Company has entered into a joint venture agreement with a Russian partner to design, develop and market a container for use in the transportation and long term dry storage of high level radioactive waste. * Decommissioning and waste management engineering services. NNRF has world class scientific experts in the area of nuclear decommissioning and waste management.
The Nuclear Industry
Nuclear generated power continued its renewed acceptance as a major source of electrical power. Concerns over global warming, in part attributed to fossil fuel emissions from coal and gas fired power plants, has moved nuclear power generation to the forefront of environmentally acceptable, if not friendly due to the waste management issues, sources of electrical power.
This movement has coincided with several factors related to Russia and its nuclear power industry. Domestically Russia in 2007 has been a world leader in economic growth which has resulted in increased demand for electrical power and the need to build new power supplies. Russia's existing domestic nuclear power grid has begun to age with increasing pressure on maintenance and the need to replace existing facilities. At the same time, Russia has become the world's second largest exporter of oil and this oil revenue has enabled the country to develop both domestically and internationally. This wealth has allowed Russia to put in place ambitious growth plans that include the development of more than 20 new nuclear power reactors by 2015 and the country has formally adopted a USD 55 billion nuclear energy development program, with USD 26 billion of this sum coming from the Federal Budget through 2015.
In January 2007, the Russian government resolved to reform all of the assets of the nuclear industry. Plans in Russia are that the Federal Agency of Atomic Energy will be replaced by the state owned holding company Rosatom. Rosatom was formed to manage the consolidation of all assets related to the nuclear industry in a single state-owned holding entity. These assets include operations such as Rosenergoatom, Atomstroyexport TVEL and other production entities and scientific institutes. Rosatom will be a complete-cycle service and product holding company through design, construction, fuel supply, operation, maintenance and decommissioning and final disposal of nuclear wastes. Rosatom will be responsible for nuclear policy and management is similar to the U.S. Department of Energy. This reform is intended to facilitate an increase in the use of nuclear energy, as a percentage of all energy utilized in Russia, up to 25%. This consolidation program has a positive impact on suppliers across the market for fuel, components, safety and environmental products and waste management. Rosatom is the state owned holding company which has responsibility for consolidation of the nuclear related assets. Rosenergoatom is the company that is operating all Russian civil energy generating nuclear power plants.
Included under the Rosatom umbrella will be Atomenergoprom, a company formed to manage and supervise nuclear assets other than the Russian nuclear power plants. Atomenergoprom will compete in the International markets providing a complete program offering full services and equipment through the entire nuclear cycle. Internationally, Russia continues to promote its nuclear power plant design and construction capabilities through state-owned Atomstroyexport (ASE) and other service and technology providing companies. Atomstroyexport was established by Russia to promote the export of Russian made products for nuclear power plants. ASE has supplied power plants to China, India and various east European countries.
Radiation and Decontamination
There are currently numerous large nuclear waste remediation projects within Russia to which the G-8 and the European Bank of Reconstruction and Development ("EBRD") have pledged an initial $4 billion dollars. These projects include the Chernobyl Shelter Fund and the "nuclear window" of the Northern Dimension Environmental Partnership ("NDEP"). NDEP is addressing projects at Andreyeva Bay, Sayda Bay, and Gremikha Bay. NDEP is also addressing the specialized Federal nuclear storage vessel "Lepse" in Murmansk harbor.
Radioactive waste was accumulated at Andreyeva Bay and in Gremikha since the beginning of the 1960s. All radioactive waste was generated as a result of the Russian Northern Fleet activities. The main center for radioactive waste accumulation was Andreyeva Bay. Northern Fleet radioactive waste from all the places of its generation, including Gremikha, was stored at Andreyeva. As a result, Andreyeva Bay is highly contaminated. Specifically, building #5 is a highly contaminated former radioactive waste storage site undergoing decommissioning.
According to international reports Andreyeva Bay contains extremely high levels of radiation that prevent further disposal of more than 150,000 tons of radioactive construction materials, 1.5 million tons of associated metals, and thousands of tons of solid and liquid radioactive waste on the site. Much of this material comes from spent nuclear fuel assemblies of decommissioned Soviet-era nuclear-powered submarines.
NNRF's licensed technologies have been proven to successfully encapsulate and contain radioactive dust and debris and increase the safety of construction personnel to enter a contaminated building to perform decontamination work.
Radiation and shielding
The traditional use of lead as a shielding material is being phased out in the European Union as it has banned the use of lead in all facilities after the year 2010. The growing awareness of the toxicity of lead and legislative efforts to ban its use indicates a burgeoning market for lead replacements. Lead is currently used as a shielding material in nuclear power plants, medical facilities (hospitals, dental clinics) and research laboratories. Nuclear power plants use approximately 100 metric tons of lead for shielding purposes and small medical facilities contain in the area of 10 metric tons of lead. NNRF's proprietary product FEECOM/BIECOM has been rigorously tested and proven to be an effective lead replacement for radiation shielding.
Radioactive and toxic waste management
In December the company announced that it signed an agreement to enter into a joint venture with the Engineering Center for Nuclear Containers (ECNC), a Russian-based developer and manufacturer of radioactive and toxic waste containers with manufacturing and design facilities in St. Petersburg and Moscow and other cities. Under this joint venture ECNC will design, develop and market Type B (U) dual purpose containers to be used for the transport and dry storage of high level solid radioactive waste. ECNC currently manufactures, under sub-contract, nuclear waste containers designed for other types of nuclear and toxic waste. ECNC will work closely with a Russian technical institute on the certification of these containers. NNRF will supply funding for the joint venture which is expected to begin work in early 2008 with commercial production forecast to begin in the last half of 2009. In addition to providing funding, NNRF will be responsible for marketing the containers outside of the Russian Federation. At AtomEco 2007 ECNC won an award for innovative design in the field of waste management.
The government of Russia has budgeted USD 11 billion for the period 2007 to 2015 for the storage of radioactive waste. Of this amount approximately USD $1.5 billion will be allocated to waste containerization. Mr. Victor Akhunov, a member of the NNRF advisory board, will work closely with ECNC management on this joint venture and guide its development. NNRF and ECNC believe that the joint venture will generate significant revenues for both companies over the period 2009 -- 2015 and beyond.
Decommissioning and waste management services
In May 2007 Mr. Victor Akhunov, former head of the Department for Decommissioning of Nuclear and Hazardous Radiation Facilities for the Atomic Energy Department of the Russian Federation joined NNRF's Board of Advisors. Multilateral Organizations involved in nuclear remediation projects in the Russian Federation have worked closely with Mr. Akhunov. The European Union as well as the ERBD recognizes Mr. Akhunov as one of the most knowledgeable and experienced experts on current and future decommissioning projects within the Russian Federation. Mr. Akhunov will assist NNRF in developing markets for its products (NuCap(tm) and FEECOM/BIECOM) that can be used in decommissioning projects. Professor Dr. Lebedev was the former General Director of the Mining Chemical Combine at Zhelesnogorsk where the construction of a dry storage facility is currently underway.
ZAO Atoll
Atoll worked throughout 2007 on a major long term contract in addition to fulfilling regular work orders for maintenance and spare parts orders for nuclear reactors and nuclear power plant parts.
During the year Atoll entered into a joint venture with Atomergomash (AEM). AEM is a state supplier of parts for nuclear power plants. AEM plans to invest one billion dollars over the next two years for plant modernization and increasing and developing their portfolio of manufacturing industrial assets. Atoll has been asked to appoint one of its representatives as Chief of Operations of the joint venture. Atoll has yet to select a representative from its management group to take on this responsibility. During 2008 Atoll and AEM are planning to work closely together to make the joint venture fully operational.
Atoll completed its move from its original St. Petersburg facilities to new locations in St. Petersburg and the Kirov region. These moves will result in lower operating and production costs and position Atoll closer to both its customers and raw material suppliers. In addition the new facilities provide Atoll with significant room for planned increases in manufacturing requirements. Although the move did have a slight impact on the company's output, Atoll management did a superb job of limiting the problems related to the move and consequently fourth quarter revenue and income are expected to be similar to Q1 and Q2 results. Although Atoll did not win the tender for the second part of the long term contract that it is currently working on, the company is hopeful that it will be awarded a significant portion of the sub-contracted work. Atoll's current order book indicates that 2008 will be another very successful year for Atoll.
Atoll has also strengthened its operations and marketing personnel as part of its plan to increase sales activities inside Russia, certain regions of the former Soviet Union and Eastern Europe. Atoll senior management, its marketing group and its accounting and information system groups are now located in Atoll offices in Moscow. The company expects that the improvements in efficiencies as a result of the move and strengthening of management will generate noticeable improvements in net margins.
As previously reported, Atoll appointed Mr. Todd Sinclair, NNRF's Chief Financial Officer, to the Board of Directors of Atoll. During 2007 Mr. Sinclair made several trips to Russia to work with both Atoll staff and Atoll's auditors to overcome cultural differences, language issues and differences in accounting standards that affected NNRF's ability to account for its interest in Atoll. In addition Mr. Sinclair worked to ensure that Atoll's reporting systems met U.S. GAAP and SEC requirements including accurate and timely reporting of quarterly results. As a result of Mr. Sinclair's trips and the meetings and work conducted during that time Atoll's Board of Directors has ratified full and transparent reporting processes. NNRF is now able to equity account for its ownership in Atoll and include its share of Atoll's revenues in NNRF's accounts, and will be reported in NNRF's year end audited financial statements for 2007. Atoll's annual audit is scheduled to begin the week of January 20, 2008. NNRF's U.S. auditors will be in Moscow to supervise and participate in the Atoll year end audit.
In addition to Mr. Sinclair's appointment, Mr. Peter Goerke, NNRF's Executive Vice-President, is also a member of Atoll's Board of Directors. Mr. Goerke worked closely with Atoll operating management throughout the year on administrative and operating issues. Mr. Goerke has worked for more than 20 years in Russia and is very familiar with Russian business processes and developments.
We are also expanding the market for the products produced by Atoll into nuclear reactors located in Eastern Europe. We have enlisted the assistance of the European Bank of Reconstruction and Development to enable us to introduce Atoll's products to the operators of soviet designed nuclear reactors in former COMECOM countries and in Eastern Europe. Atoll's products are specifically designed for these reactors. Atoll's products are well established in the CIS marketplace and enjoy repeat business.
Mr. Sinclair and Mr. Goerke will be traveling to Russia in the last half of January to continue to develop the strong working relationships necessary for successful business operations in Russia. Mr. Sinclair will be meeting with the new CFO of Atoll who will be starting in this newly created position on January 15. Atoll's CFO designate has a strong background in U.S. GAAP and has recently returned to Russia after working in London, England for a number of years.
Velcont and JSC ElectroPrivod
During the third quarter of 2007 NNRF made its first investment of $475,000 in Velcont. This represents 4% of the issued and outstanding stock of Velcont. Under the terms of our Letter of Intent the NNRF group intends to own 25.5% of Velcont. NNRF is currently in negotiation to secure the funding necessary to complete its investment in Velcont.
Velcont is fully licensed by the Federal Agency of Atomic Energy of the Russian Federation for the production of nuclear power plant equipment and holds other licenses for the production of equipment and microelectronics for the aeronautic and automotive industries. Velcont's 450,000 square-foot manufacturing plant gives it the capability to become a technological production center in the Kirov Region in Central Russia. Recent reports in Russia state that Russia's booming auto market is estimated to become Europe's largest car market by 2011. Several foreign automotive manufacturers including General Motors are either in the process of setting up assembly or considering setting up assembly facilities in Russia. In addition to supplying a growing nuclear energy market, as a major producer in the automotive market, Velcont anticipates participating in this expanding market. Velcont is located close to the capital of the Region of Kirov where there is a large supply of well-educated and skilled workers.
Electroprivod is a scientific and technical complex and a leading designer of micro-electronic equipment in the Russian Federation. JSC Electroprivod is licensed by the Federal Ministry of Nuclear Energy of the Russian Federation and other federal ministries. Over the past 50 years, JSC Electroprivod has designed and developed over 1,500 products used in the Russian and the CIS aeronautical and automotive industries. More than 200 of these items are currently being manufactured in factories in several cities in Russia. During 2008 Electroprivod intends to move portions of its manufacturing to the Velcont facility as part of the Atoll/Velcont/Electroprivod plan to consolidate manufacturing. Electroprivod has embarked on an ambitious 2008 expansion plan including sales to export markets.
Final terms and conditions of the JSC Electroprivod acquisition will be negotiated after NNRF acquires its initial 10% of Velcont. The Company is working closely with its investment bankers to secure the financing needed to meet these funding requirements.
RUAR
In a press release dated May 21 2007 we announced that we signed a letter of intent to acquire 50% of RUAR subject to completion of due diligence including review and verification of its proposed business plan. In a July 9 news release we stated that we had concluded due diligence on RUAR. Subsequent to the issuance of this news release and after several meetings with RUAR ownership, NNRF management determined that further examination of the agreement was required.
It was the intent of NNRF, once the acquisition was complete, for RUAR to implement the process of becoming a publicly traded company on the London Alternate Investment Market and dividend to NNRF shareholders NNRF's interest in RUAR's H-XCELL fuel division. During this extended due diligence period Mr. Sinclair and Mr. Goerke toured some of the companies that RUAR plans to acquire as part of its business plan. Continued review of the planned RUAR acquisitions and further due diligence meetings indicated that the capital requirements of RUAR exceeded what the NNRF Board of Directors and management felt could be justified by potential returns. Management have determined that the proposed acquisition and RUAR's business model, as currently structured, is too expensive and does not generate a viable return to NNRF shareholders. At this time The Board of Directors and management have determined that NNRF concentrate on strengthening its existing acquisitions and potential acquisitions that are more suitable to the company's core nuclear industry business.
FEECOM/BIECOM
Considerable progress was made towards commercialization and marketing of FEECOM/BIECOM during the year. The product passed all necessary tests which permits the Company to proceed with marketing the material in the European Union. NNRF presented its FEECOM/BIECOM at the AtomEco 2007 exposition in December in Moscow. AtomEco was hosted by the Russian Federal Agency of Nuclear Energy and was a forum for suppliers and users to review various innovative technologies in the field of nuclear waste management and radiation. NNRF was a co-sponsor of the event and Dr. Hans-J. Engelmann, the company's Head of Shielding and Encapsulation, gave a presentation of our shielding and encapsulation materials at the exposition. FEECOM/BIECOM is currently undergoing testing in Russian institutes such as Radon and Bochvar prior to commencement of formal marketing activities in the Russian Federation.
Also in December company representatives held several meetings with E.ON to select a nuclear power plant site for in place testing of FEECOM/BIECOM. E.ON is one of Europe's largest nuclear power plant maintenance providers. An initial site was selected in December but after further engineering reviews it was mutually concluded that an alternate site be selected that can be more easily used as an initial test site. NNRF anticipates that a final decision on this alternate site selection will be made in February 2008.
As previously reported NNRF has been in negotiations with a German medical facility to replace lead walls and ceilings with FEECOM/BIECOM. Engineering studies, including quantities, weights and shielding levels were conducted in December and it is expected that the company will conclude the contract in the last half of January or early February 2008.
FEECOM/BIECOM is produced in Hanover, Germany and production quality is controlled by the Fachhochschule Hannover, a technological university that has entered into a production agreement with NNRF. The Company has selected new equipment that is capable of producing commercial quantities and allows NNRF to make various molds of FEECOM/BIECOM bricks and other forms that will be used by customers. This equipment will improve product quality and increase volumes of final production. Together with Fachhochschule Hannover we applied for a state grant available to companies that are creating new employment in the State of Lower Saxony, Germany. This grant is non repayable and we will use these funds to develop further modifications of the patent pending product.
Sales and marketing of FEECOM/BIECOM is lead by Mr. Klaus Rose. Mr. Rose is widely considered to be one of the leading managers in the nuclear shielding materials field. Since 1999, Mr. Rose has operated RCE Rose Consulting & Engineering (RCE). RCE provided various on-site radiological shielding solutions, including dosimetry services and nuclear power plant safety training programs, to nuclear utility companies in the EU. These companies include British Nuclear Fuel Corporation, Risley, U.K, Siemens KWU, Erlangen, ENSA, Santander, Spain and others. Due to his on-site work in Germany, Mr. Rose is well known by the site managers of the nuclear power stations and provides Nucon-RF entry introductions to the utilities. His prior work with the site managers of nuclear power stations in Germany provides Nucon-RF a very powerful marketing edge.
The production and sale of FEECOM/BIECOM in the European Union represents a diversification of product lines of a product owned by the Company and sales outside Russia. The certification of our shielding materials and the opening of commercial quantity production facilities will enable NNRF to generate revenue in several countries in the European Union during 2008.
NuCap(tm)
NuCap(tm) is a silicon polymer composite designed to encapsulate radioactive material. NNRF has an exclusive license from Global Matrechs, the owner of the NuCap(tm) technology, to market the product in Russia and the rights, on a non-exclusive basis, to market NuCap(tm) in other CIS countries. NuCap(tm) is manufactured in the United States. During the year NNRF management and scientific group met with representatives of Global Matrechs and the supplier Dow Corning to review several matters including preparation and application of the product. These meetings took place at Dow Corning's facility in Wiesbaden, Germany in October and November and at the Stusdvik testing facility in Karlsruhe, Germany in November. In attendance at the Wiesbaden October meetings from NNRF were Peter Goerke, Todd Sinclair, Hans Englemann and Klaus Rose. Global Matrechs was represented by its President Michael Sheppard who was accompanied by Mr. Shawn Kuch from Dow Corning USA. The November Wiesbaden meeting was attended by Goerke, Englemann and Rose and from Global Matrechs Michael Sheppard and his consultant Mr. Archer Haskins. The various meetings were intended to learn more about the product's characteristics, ensure that NuCap's performance would meet NNRF's requirements and discuss product application issues.
NNRF has received customs clearance for the import of NuCap(tm) into the Russian Federation under the Foreign Economic Activity Commodity Nomenclature (FEACN) No. 3214101000. During 2008 our Moscow staff will be working with various Russian groups on engineering and evaluation issues.
No sales of this product have occurred to date and at this time the company is not able to forecast NuCap(tm) revenues for 2008.
Any reference to a conspiracy by NNRF to illegally use Global Matrech's proprietary products is completely false.
EP
As previously reported the Company has completed an extensive review of power quality issues in Russia. This review included an analysis of the market based on NNRF efforts throughout 2007. The review confirmed that power quality is a concern to Russian consumers. The review indicated that the market for residential power quality equipment is competitive and will develop more slowly than originally forecast.
The EP project will be managed by our subsidiary OOO Nucon-RUS headed by its General Director, Mr. Alexander Stepanenko. Mr. Stepanenko will focus efforts on larger industrial applications. The Company will continue to develop a market for power quality products and continue its working relationship with its Tatarstan dealer StroyKomplektInvest (SKI). NNRF will direct marketing efforts to identified industrial and commercial applications. The Company did not achieve meaningful revenue from this line in 2007. While NNRF believes there is a prospective market for the EP product line we cannot forecast related revenues for 2008.
Trumem
Trumem is a liquid filtration system that is capable of decontaminating radioactive contaminated water as well as other kinds of polluted water. Trumem is a porous metallic-ceramic membrane, with a high-output, long-lasting, inexpensive and compact purification unit for all kinds of liquid wastes, including radioactive waste. Applications of Trumem include conditioning and cleaning of liquid radioactive waste and contaminated water, filtration of toxic liquid waste and cleaning of industrial water.
NNRF did not allocate any resources to the marketing of Trumem in 2007. During 2008 the company's Chief Scientist, Professor Dr. Valery Lebedev, a co-inventor of Trumem, will be responsible for identifying commercially viable applications and developing product specifications necessary to respond to requests from potential European and North American customers.
Egypt
In October the Company submitted a formal proposal for the management of Egyptian hazardous waste to the Egyptian Environmental Agency. The proposal, prepared by NNRF management, included the undertaking of a feasibility study and development of a strategic plan for waste management in Egypt. The Company has not received official information on the decision by the Egyptian agency to proceed with this proposal.
NNRF is also working on efforts to introduce FEECOM/BIECOM to the Egyptian market. The Company is currently in discussions with Egyptian parties that are interested in marketing FEECOM/BIECOM in Egypt and possibly other Arab countries.
South Korea
The Company has been conducting negotiations with Korea Nuclear Industry Co., Ltd. a South Korean company involved in radiation decontamination and waste management. Representatives of Korea Nuclear Industry Co. will come to Germany for formal meetings and to negotiate a formal marketing agreement for NNRF's shielding and encapsulation materials in the South Korean region. These meetings are scheduled for mid-January 2008 in Munich.
NASD
The Company, along with its sponsor, are working on the NASD comments as part of the process that will enable the Company to list on the OTCBB. A prerequisite to listing was the effectiveness of the Company's Form 10SB which occurred on October 5, 2007.
Russian Trading System
Company representatives met with senior staff of the RTS on several occasions during 2007. These meetings centered on issues related to a dual listing on the RTS. Internal Russian laws and regulations for dual listing of foreign companies are expected to be finalized and enacted in the first half of 2008. The Company will have further discussions with RTS staff during this period. In addition NNRF management met with various brokerage houses in Moscow that will assist the company during the listing process. NNRF intends to dual list on the RTS when Russian laws and regulations have been finalized and enacted.
Valery Zubov, a member of the Company's advisory Board, was re-elected to the Russian Parliament, as a member of the Federal Duma. Mr. Zubov was elected in the Krasnoyarsk Territory as a member of the political party Just Russia. Mr. Zubov has been instrumental in the creation and development of the Russian Fund market. The Company believes it will benefit from his assistance and guidance in negotiations with the RTS and Russian brokerage houses.
At the National Investment Banker's Association convention held in November the Company sponsored the convention's keynote speaker, Ms. Elena Avakyan, the Department Head of the Russian Supreme Arbitration Court. NNRF continues to develop working relationships between the RTS and the North American investment community.
Munich Office
During the fall, the Company relocated its European management offices from Berlin to Munich. Munich is closer to the company's scientific and production partners such as Studsvik, and suppliers of raw materials for FEECOM/BIECOM. The move also improves travel into Russia and the United States from Europe.
Moscow Office
The company reorganized its Russian operations in the fourth quarter of 2007 to meet the challenges it encountered in 2007 in executing certain facets of its business plan. Dr. Valery Lebedev has moved to the position of Chief Scientific Officer where he will be able to devote time and effort to the identification of markets for NNRF's technologies in Russia. It has reorganized the Russian management of its wholly owned Russian subsidiary OOO Nucon-Rus and Alexander Stepanenko has taken on the responsibility of Director General and also the responsibility for marketing NNRF products in the Russian Federation. Additionally the Company created an separate management office in Moscow to assist in the general management of the manufacturing facilities in which NNRF has ownership interests. This office will also consolidate all accounting operations for the manufacturing facilities.
Summary
It is expected that over USD 10 billion of government nuclear services contracts will be awarded within the next five years for the clean up of former military sites in Russia, and we expect to participate as a sub-contractor on a significant portion of these contracts. We believe that we have the technical know-how, appropriate technologies and our senior management has considerable, decades-long experience in these projects, having administered them while they were senior executives at the Federal Ministry.
Russia plans to spend in excess of USD 50 billion dollars over the next 20 years in the construction of new nuclear powered generating plants. Our investees are well positioned with their products to participate in this ambitious program.
Over the period ending 2015 Russia has budgeted USD 11 billion for the storage of radioactive waste. NNRF through its container joint venture with ECNC anticipates successfully participating in this program.
We have developed the ability to provide a portfolio of specialized, technology-based nuclear services in both Russia and in selected international markets. Our breadth of services, technology portfolio and extensive management experience position us to pursue a wide range of nuclear services contracts. We have developed the basis to pursue contracts outside of Russia. We laid the groundwork for these activities in 2007 and expect to generate significant revenues from them in 2008. We are now able to respond to specific, technical customer needs in an industry that requires customized solutions.
Through its investment program and its specialized technologies and products NNRF is positioning itself to be a major supplier to the developing nuclear markets in Russia and throughout the world. NNRF management looks forward to a breakthrough year in 2008 where significant strides are made toward becoming a successful and profitable participant in the international nuclear industry.
Shareholder communication
The Board of Directors, officers and management of NNRF are fully committed to improving its communication with shareholders and the investment banking community. We would like to take this opportunity to express our apologies for not being more proactive in shareholder communications. In the future we intend to have monthly updates posted on our web site. This will include formally issued news releases published through public media services.
The company is fully aware of the importance of market awareness of its publicly traded stock however the company will not engage in certain "IR/PR" types of activities which are common with many small cap companies. We will not engage in the following procedures: we will not engage in email blasts or any types of fax blasts; we will not hire boiler room operations to promote stock; we will not engage at any time in message board or chat room activities which discuss NNRF stock. The company believes that its most important asset is its shareholder base. We have been informed by many of you that our shareholder department has performed diligently and promptly in answering any questions and returning calls.
The Company's President J. Holt Smith reiterates that any corporate information must originate from the company and be approved in advance by management. The company will not engage in any form of discussion on potential stock price as it believes that the implementation of the company's business plan will establish stock price.
About NNRF
NNRF is a U.S. corporation with executive and operations offices in Moscow, Russia, Munich, Germany and North America. NNRF through its Russian-based partners offers design and manufacturing of specialized products for nuclear reactors, nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF's management team has extensive industry and government service including significant in-house expertise in all aspects of radiological protection and radiological waste management.
SAFE HARBOR STATEMENT:
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding announcements of financial results, business potential and other prospective presentations by NNRF. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products in domestic and international markets will continue to expand. NNRF undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in NNRF's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.