@Ventureworks, Inc. undergoes corporate restructuring
@VentureWorks will change the focus of its core business from developing Internet-related technologies to developing technology for rehabilitating and repairing underground pipe systems.
SARVER, Pa., Jan. 30, 2001 (PRNewswire) — Sarver, Pa.-based @VentureWorks (OTC Bulletin Board: AVWX) announced today that it has completed a major corporate restructuring, including changing the focus of its core business from developing Internet-related technologies to developing technology for rehabilitating and repairing underground pipe systems.
As part of the restructuring, @VentureWorks has changed its name to Underground Solutions, Inc. and added a new executive management team.
@VentureWorks former business plan focused mostly on the acquisition of Internet-related technologies, including assisting in the funding and growth of the companies' developing technologies. With the recent reversal of the public markets regarding companies that develop Internet-related technologies, the management of @VentureWorks determined that the company's long-term growth would be better served by refocusing the company's resources on its most promising opportunity, the patented Duraliner Pipe Rehabilitation System.
Mark Smith, former CEO of @VentureWorks and now chairman of Underground Solutions stated, "We are excited about the new focus of the company and pleased that we could recruit an executive management team with so much business development experience." Mr. Smith went on to say, "As the exclusive master licensee for the patented Duraliner System for the United States and South America, Underground Solutions is uniquely positioned to participate in the rapidly growing infrastructure rehabilitation market."
Underground Solutions, Inc. recently acquired the exclusive United States and South American license to market and distribute the Duraliner Pipe Rehabilitation System. Similar to other underground pipe rehabilitation systems, Duraliner allows for the efficient and economical replacement of damaged or corroded underground pipes without the need for extensive digging or disruption of surface traffic. The system works by inserting a smaller PVC pipe into the existing damaged or corroded pipe and expanding it with a controlled application of heat and pressure to fit tightly against the existing pipe's walls. However, unlike other existing trenchless systems, the Duraliner System utilizes conventional materials and fittings and offers a permanent solution to replacing and repairing damaged pipes versus providing only a temporary "fix." Most importantly, the Duraliner System is suitable for replacing and repairing not only sewer systems, but also pressurized pipes, including those used for potable water and various industrial applications.
John Swiatek, Underground Solutions president and CEO stated, "Our senior VP of corporate development Tom Chaffee and I have worked successfully together over the past 11 years in a high growth, technology driven industry and are anxious to bring our skills to the infrastructure rehabilitation industry. We are especially confident that our experience working in a regulated industry will benefit Underground Solutions, since many pipe rehabilitation projects are orchestrated or overseen by state and local governments."
Mr. Swiatek went on to explain the potential for growth in the underground pipe rehabilitation industry, citing a recent government report stating that the cost of building, operating and maintaining needed drinking water and wastewater facilities will approach $2 trillion over the next two decades. Included in this number is the maintenance and rehabilitation of over a billion miles (5,280,000,000,000 lineal feet) of existing water lines, much of which are aging and in need of repair.
To position the company to best capitalize on the potential of the Duraliner Pipe Rehabilitation System, Underground Solutions has effected or begun to effect the following changes:
— A spin off of the Internet web site development arm, TechWorks Solutions, Inc., to management in a transaction that returned approximately 10.2 million shares (approximately 25 percent of the outstanding shares) to the company.
— The shut down of operations of other developmental entities that include ImageWorks Solutions, Inc. and SpiderCom, Inc.
— The termination of efforts to acquire BigEquip.com, Inc. and IgnitionSequence, Inc. and to invest in Frank's Garage.com, LLC.
— Addition of a new executive management team to execute the Underground Solutions, Inc. business plan that includes:
— Mark A. Smith, Chairman
— John M. Swiatek, President and Chief Executive Officer
— Tom E. Chaffee, Executive Vice President, Corporate Development
— Richard "Dick" Nieman, Vice President, Sales and Licensing.
— Retained Pittsburgh-based marketing and public affairs firm BrabenderCox Mihalke to help Underground Solutions develop a plan to market the Duraliner Pipe Rehabilitation System and assist the company with public and government relations.
SOURCE: Underground Solutions, Inc.