TORONTO, ON Can, May 21, 2002 -- Ozolutions Inc., an international distributor of environmentally friendly water treatment systems, announced a final settlement with Hankin Ozone Systems Ltd. for the exclusive marketing rights to distribute the products of Hankin Ozone Systems in Mexico, Ontario, Canada and non exclusive rights for the Caribbean.
Ozolutions had previously purchased said rights from 1421209 Ontario Limited for $ 1,017, 217 and the issuance of 8,000,000 common shares of Ozolutions Inc. The $ 17,217 was paid in June of 2000 and the 8,000,000 shares were issued in November 2000. The additional payment of $1,000,000 to 1421209 Ontario Limited, which had not previously been paid, will no longer be required since Ozolutions paid $50,000 directly to Hankin for these marketing rights on April 19th, 2002. Ozolutions will also be considered for additional marketing rights in other territories.
As a result of this agreement with Hankin, Ozolutions will write off the net marketing rights of $ 763,000, eliminate the remaining obligation of $ 1,000,000 to 1421209 Ontario Limited and record an extraordinary gain of $ 237,000 in Ozolutions third quarter ending May 31, 2002. In addition, Ozolutions will expense the $50,000 already paid to Hankin.
Hankin Ozone Systems will commence production of its new EntrOzone multi-barrier protection unit which is designed for use in individual homes, farms and leisure properties not served by properly treated water supplies. In Ontario alone, there are more than 800,000 homes on individual wells, many of which show significantly high levels of microbial contamination. Given the increasing number of contaminents found in private water supplies, the EntrOzone is designed to eliminate bacteria, viruses, parasites, many chemicals and heavy metals.
This capability to eliminate a broad spectrum of water borne contaminants is made possible by Hankin's integration of three proven treatment technologies- ozonation, ultra violet and activated carbon filtration, none of which introduce harmful chemicals into the environment. Ozolutions intends to aggressively market the EntrOzone in Ontario, Canada's largest market, and projects sales of $8,000,000 of the EntrOzone units over the next year.
HankinOzone Systems have designed and installed many ozone based water treatment systems around the world with particular success in the bottled water industry, municipal water supply and cooling towers. Max Weissengruber, Ozolutions President stated that "Ozolutions anticipates strong demand for the EntrOzone since more and more individual homes are being required to provide their own water treatment systems which are as important as heating, ventilation and air conditioning for home comfort and family safety."
