PITTSBURGH, Sept. 10, 2003 -- Underground Solutions Inc. announced that it has successfully completed its first Duraliner Water Line Replacement System on a military facility for the Federal government and it is forming a new company division to be called "Underground Solutions Federal Group" to continue to pursue infrastructure rehabilitation opportunities on military facilities throughout the world.
Mark A. Smith, Underground Solution's President/CEO stated, "With the current focus by the government on military readiness, there is a tremendous amount of funding for (O&M) Operations and Maintenance contracts for all military facilities around the globe. A large number of these contracts involve the rehabilitation of deteriorated underground water lines and our Duraliner System provides an economical and non-disruptive means of accomplishing this."
To date, Underground Solutions has successfully completed one Duraliner project on a military facility, has one military facility project that will be starting next week and is specified on projects on two additional military facilities scheduled to be awarded this year. If awarded in their current format, these contracts represent approximately $2,500,000 of revenue for the Company.
Duraliner is a unique patented process for pipeline renewal resulting in a "stand alone" structural lining capable of handling internal minimum operating pressures of 150 psi with a 3.2 safety factor. Duraliner conforms to NSF 61 Standards for Drinking Water Components/Health Effects.
In addition, Duraliner provides an equivalent design-life of new PVC pipelines (75 to 100 years) thus qualifying the rehabilitated pipe lines to be capitalized as new assets under the rules of GASB Statement 34.
