LONDON, Ontario, Canada, March 9, 2001 — Trojan Technologies Inc. (TSE/TUV) today announced that it has agreed to acquire the assets of Advanced Ultraviolet Solutions (AUVS) of Tucson, Arizona.
The purchase of AUVS will accelerate Trojan Technologies' entry into a rapidly emerging market opportunity in the destruction of exotic contaminants in drinking water supplies.
AUVS, recently spun off from Hydro Geo Chem Inc., an innovative environmental consulting firm, founded in 1978, designs, integrates and installs optimised UV light treatment systems for the destruction of certain chemicals present in contaminated drinking water wells and aquifers as well as contaminated wastewater that must be treated prior to beneficial re-use. The purchase agreement consists of an upfront payment of U.S.$0.5 million with milestone and earn-out payments based on revenue generation and profitability over the next 10 years.
"We are excited about this important new market opportunity which we believe will be an important factor in the profitable growth of the Company," said Hank Vander Laan, President and CEO of Trojan Technologies. "Issues surrounding water contamination are of growing concern. We welcome the people of AUVS who will assist us in offering cost-effective UV solutions to these growing needs."
Trojan and AUVS have identified projects in California with revenue potential exceeding C$50 million over the next 3-5 years. It is expected that other projects throughout the United States will require similar technologies over the same period.
"We're delighted to join Trojan Technologies. We will benefit from their commitment to research and design excellence positioning us to succeed in this important market," said Christian Williamson, former Managing Partner of AUVS. Dr. Williamson will assume the position of Managing Director, Environmental Contaminant Treatment for Trojan Technologies.
Exotic contaminants are compounds which are mobile in water, toxic at low concentrations, resistant to biodegradation and difficult to treat by conventional technologies. For the past two years, AUVS and Trojan have been cooperating in the development of low-energy UV lamp technology systems for the removal of such compounds as N-Nitrosodimethylamine (NDMA), a chemical which is released to the environment as a by-product from manufacturing.
Market Developments Exciting progress is taking place in the Company's core market segment. Over the past week, Trojan has submitted bids in excess of C$32 million for wastewater treatment projects. As Trojan previously reported, the Company has been actively involved in two very large projects for wastewater treatment that have been subject to bidding delays. These two projects, both located in the United States, have now completed the bidding process. While the municipalities are now evaluating the general contractors' proposals for each project, Trojan's UV systems have been exclusively offered on both projects as equipment to be supplied by the bidding contractors. Purchase decisions and order placements are expected to be announced in the near future.
"We are delighted to report significant progress on these large projects," said Marvin DeVries, Executive Vice President and COO for Trojan Technologies. "For several years, we have worked to develop and validate solutions to the wastewater treatment needs of these clients. Through this long-term investment, we have demonstrated our ability to respond with effective and efficient solutions."
If awarded, each of these contracts would be larger than any other contract award received in Trojan's history. Some assembly of the systems would occur during the current fiscal year with the majority of the work and delivery anticipated in fiscal 2002.
Trojan Technologies is a Canadian based, high technology environmental company operating internationally. With more than 20 years of experience, Trojan has the largest installed base of UV disinfection systems operating around the world. Trojan designs, manufactures and sells ultraviolet disinfection systems for municipal wastewater, drinking water systems for residential, municipal and commercial use, and industrial systems for food and beverage, pharmaceutical, and semiconductor applications.
