Seprotech Lands Military Standing Offer Contract: Agreement Worth Up to $6,000,000
January 15 2009 - 8:12AM
Marketwired
Seprotech Systems Inc. (TSX VENTURE: SET), a Canadian Environmental
Technology Company and manufacturer of water and wastewater
treatment systems, is pleased to announce that the Canadian
Department of National Defence (DND) has selected Seprotech to
support two classes of water purification systems with Repair and
Overhaul Services, Engineering support and Field Service support.
The Standing Offer is for an initial two year period estimated
at $ 2.5 Million with an option to extend for an additional three
one year periods. The estimated total value of the five year
standing offer is $6,000,000. The final amount spent in any given
year, is at DND's discretion. The amount spent by DND in any given
year will vary according to military needs. The standing offer
process provides the Canadian Forces with immediate response and
support to their equipment requirements. Seprotech has been awarded
similar Standing Offers from DND in the past including the
equipment in this new Standing Offer.
"We are very pleased to have been awarded this Standing Offer
Agreement. We have done this work in the past for DND and this new
award demonstrates the high degree of confidence that DND has in
Seprotech," said Martin J. Hauschild, President & CEO of
Seprotech.
"We announced last year, that in response to an expected
downturn in capital spending we would place increased emphasis on
plant operations, spare parts and service," added M. Hauschild.
"This work is a key element in that strategy and we remain
committed to our goal to generate 50% of revenues from Operations
and Maintenance (O&M) within two years. Over time, the utility
side of our business will provide revenue consistency while water
& wastewater treatment equipment sales will provide growth. The
ability of Seprotech to meet all aspects of its clients' water and
wastewater treatment needs represents a clear competitive
advantage," concluded M. Hauschild.
Seprotech is a provider of pre-engineered water and wastewater
treatment plants to the land development, resource sector and
military market place, including CrystalBlue(TM) membrane-based
water recycling systems and the ROTORDISK� wastewater treatment
systems.
The TSX Venture Exchange has neither approved nor disapproved of
the information contained herein. Some of the statements in this
press release, including those relating to the Company's strategies
and other statements that are predictive in nature, that depend
upon or refer to future events or conditions, or that include words
such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions, are forward-looking statements
within the meaning of securities laws. Forward-looking statements
include, without limitation, the information concerning possible or
assumed future results of operations of the Company. These
statements are not historical facts but instead represent only the
Company's expectations, estimates and projections regarding future
events. The Company does not undertake any obligation to update or
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this presentation
or to reflect the occurrence of unanticipated events, except as
required by law.
Contacts: Seprotech Systems Incorporated Mr. Robert J. Searle,
CFO Investor Relations 613-523-1641 613-731-0851 (FAX)
rsearle@seprotech.com
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