GUELPH, ON, Sept. 13 /CNW/ - Dr. Gene Shelp, President and CEO of ENPAR Technologies Inc. ("ENPAR"), is pleased to announce that a major American water company ("COMPANY") has purchased DesEL units for testing the applicability of ENPAR's water treatment system for the North American commercial and residential markets.
This announcement follows approximately 12 months of successful laboratory testing of ENPAR's laboratory unit by the COMPANY. During the second phase of testing ENPAR will focus on the development of a point-of-entry prototype that will treat approximately 8 litres of water per minute. The Company will conduct on-site testing of that prototype at several commercial sites. Shipment of the first 4 full-scale units is expected to occur within the next week. Additional orders are anticipated the third or fourth quarter of this year. On-site testing will continue for 6 to 12 months.
In May 2006, ENPAR entered into a Mutual Confidentiality Agreement with the COMPANY for the sole purpose of evaluating a possible business transaction relating to ENPAR's DesEL Technology as an alternative to conventional residential and commercial home water treatment systems such as reverse osmosis units and water softeners.
For competitive reasons ENPAR may not disclose the name of the COMPANY at this time. However, a formal binding contract between the two parties is expected to be finalized in the near future. Shareholders will be informed as events unfold.
Based on published information, the global residential/commercial market is currently valued at $15B USD annually, with the market predicted to reach approximately $45B by 2011. In the US alone, the residential and commercial markets are estimated to be greater than $3B and $5B, respectively.
As indicated in an earlier press release, the commercial market will be the initial target because of more favourable economics; however, the COMPANY also plans a limited number of installations at residential sites in environmentally-challenged regions. One such region is the State of California, where the government is implementing strategies for reducing wastewater chloride levels that originate from self-regenerating water softening systems.
ENPAR's DesEL System can replace both the reverse osmosis unit and the water softener.
ENPAR is a "Technology Company" applying its patented and proprietary "Electrochemical Technologies" to the treatment of waste water and drinking water contaminated by metals or nutrients i.e., nitrate/ammonia associated with the mining, metal processing, chemical, agricultural, municipal and waste management sectors. The common shares trade on Tier ll of the TSX Venture Exchange under the symbol "ENP".
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause ENPAR Technologies Inc. results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof.