MOSCOW, March 11, 2008 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) today announced an update of corporate activities. In this press release we update interested parties on the Company's progress in its endeavors and discuss some of the new initiatives being undertaken. NNRF, Inc. is hereinafter sometimes referred to as the "Company."
ZAO Atoll
Atoll's auditors completed the audit field work portion of the audit in the last week of February. Our U.S.-based auditors were present and participated in the field work process. The audit working papers are now in the process of partner review in Moscow, and upon completion of the partner review, the draft financial statements and audit working papers will be forwarded to our U.S.-based auditors for review. It is anticipated that the review by our U.S. auditors will take place in the week of March 10, 2008.
Atoll management reports that the ramp up of manufacturing in the Kirov region facility has been completed and that the company is now in full manufacturing in its new location. As reported previously, this move was undertaken in order to take advantage of the highly trained, relatively low cost work force in the Kirov region and position the Company closer to material suppliers and customers. In addition, Atoll's consolidation of senior management, marketing and reporting activities in Moscow has worked well with a major benefit being that the marketing department is now closely located to major customers.
JSC Velcont and JSC ElectroPrivod
Both JSC Velcont and JSC Electroprivod have continued to expand their 2008 order books during the first quarter of 2008. Electroprivod plans to relocate portions of its manufacturing into the Velcont facility in the Kirov region and to increase their cooperation.. Electroprivod has also successfully made sales to new customers in Asia. These initial export sales are the beginning of what Electroprivod believes will be long term growth in its export development program.
NNRF and Electroprivod are in the final stages of completing the investment agreement between the two companies. It is expected that the agreement will be finalized during the first quarter.
FEECOM/BIECOM
The Company is pleased to report receiving its first commercial order for BIECOM from one of Europe's largest nuclear facility operators. This order is for the supply of a nuclear shielding structure necessary in use of radiation measurements and nuclear analytics. This prototype will be used as the basis for future implementation of additional shielding walls and structures.
Another NPP operator has also asked the Company to supply specially designed containers to shield radioactive water containers. NNRF's staff, in consultation with the customer, has completed the design of these containers and the Company is proceeding with the development of the required moulds.
During March, we completed negotiations with suppliers for manufacturing machinery. We anticipate taking delivery of machinery in May and until that time the supplier will provide loaned equipment for our manufacturing requirements.
As previously reported, we have met with management of a German-based medical facility regarding the supply and installation of BIECOM in the facility's computer tomography and radiological therapy center. The Management of the facility has presented our proposal to the medical facility Board of Directors. We expect to have a response to our proposal in the near future.
In addition to our first commercial sale of BIECOM, the Company has been contacted by two other European operators of nuclear power facilities regarding our shielding products. These operators will be meeting with Company staff during March.
BICOFLEX
During the past nine months, the Company's scientific group has developed BICOFLEX, a flexible version of its FEECOM/BIECOM material. This material was initially displayed at the AtomEco exposition in Moscow in November 2007. BICOFLEX has many applications such as for aprons that are placed on patients during x-ray procedures and radiotherapy.
The Company has been in discussion with one of Europe's largest manufacturers and suppliers of shielding garments for the supply of BICOFLEX. NNRF was asked to provide samples in various sizes for testing. To date, the material has surpassed all tests. NNRF staff are in close discussions with the garment manufacturer regarding distribution rights for Europe.
In addition to being used for garments, BICOFLEX can be manufactured in curtain format. Because of its flexibility, the curtain material can be used in geometrically challenging areas where rigid material cannot successfully block radiation. In addition to supplying BIECOM/FEECOM to nuclear power plant operators, we have been asked by the operators that we are currently working with to present the curtain material to their management groups.
The Company is extremely encouraged by the response that it has received for its radiation shielding materials and expects to post related revenues during the second quarter of 2008.
FEECOM/BIECOM and BICOFLEX are produced in Hanover (the capital of the Federal state of Lower Saxony), Germany and production quality is controlled by the University of Applied Sciences Hanover, a technological university that has entered into a production agreement with NNRF.
Russian Trading System
Company representatives will be meeting with RTS senior management during the week of March 10, 2008. These meetings will continue discussions of the processes required for listing on the RTS. Rules regarding dual listing on the RTS have only recently been developed and issued and we will be closely reviewing these new rules with RTS management.
South Korea
During January Company representatives met with the Korean Nuclear Industry Company (KNI). KNI is very active in the nuclear industry in South Korea. South Korea currently has 20 nuclear power generating stations and there are four nuclear power plants under construction with two more budgeted for construction and another six in the planning stages. Additionally, the country has firm plans for the decommissioning and dismantlement of two nuclear power plants.
KNI is a supplier to the Korean nuclear power industry with a market share of approximately 40 percent. KNI is interested in marketing the full line of NNRF products including our line of containers which are under development with our joint venture partner the Moscow based Engineering Center for Nuclear Containers. KNI has begun marketing our products and we expect to finalize the terms of a distribution agreement with the company in the second quarter.
Nuclear Container Corporation
The Company has formally entered into its previously announced joint venture with the Engineering Center for Nuclear Containers. This joint venture is in the process of being incorporated in Russia under the trading name The Nuclear Container Corporation (NCC). Mr. Vitaly Fomenko has been appointed the General Director of the joint venture. Mr. Fomenko is a graduate of the Moscow Engineering-Physical Institute where he majored in experimental nuclear physics. Mr. Fomenko has a long history in the nuclear industry in Russia and the former Soviet Union including involvement in the containment emergency at Chernobyl in 1986. He began his career as an Engineer at the I.V. Kurchatov Institute of Nuclear Power in Russia. He was appointed to the Ministry of Atomic Energy of Russia as a leading expert and specialist on various nuclear matters. In the early 1990s he became the General Manager of the United Nations Project UNSCR 687 responsible for the export to Russia of research reactor irradiated fuel elements from Iraq. His latest position was Deputy Director of the Academic Center of Strategic Partnership and Power Safety located in Moscow. Mr. Fomenko is fluent in English.
New office in Moscow
The Company has secured new, larger office space in Moscow. This new space will provide room for NCC staff, Atoll staff and expanded space for the reporting group that will be responsible for the consolidation of all reports and communication between the companies in the group. We will post the contact information for the new office on our web site once telephone lines have been connected and all staff relocated.
Year end audit
The audit of NNRF is currently underway. The Company will be reporting financial results for 2007 in accordance with regulatory filing requirements.
Web site
The Company has contracted with a German-based web developer for a new web site. This development is expected to be completed by the end of March. The site will be multilingual and will be designed with an emphasis on marketing and information dissemination.
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.