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Press Room
<strong>ThermoEnergy Pursues Acquisition</strong>
LITTLE ROCK,AR, October 4, 2006 — ( Business Wire ) —
ThermoEnergy Corporation ("ThermoEnergy," OTCBB - TMEN) today confirmed that it has engaged in discussions with
CASTion Corporation ("CASTion")
concerning the possible acquisition of CASTion by ThermoEnergy. CASTion,
headquartered in Worcester, MA is currently a subcontractor for
ThermoEnergy for the assembly and installation of the New York City
Department of Environmental Practices project at Jamaica Bay.
"The parties have executed a non-binding Letter of Intent, but not
yet finalized a definitive agreement as it relates to the final
structure of the proposed transaction," said Andrew T. Melton,
ThermoEnergy's CFO, "This acquisition serves a dual purpose for the
Company - it is both a strategic market move as well as a growth
vehicle" added Melton. Mr. Melton noted that further information will be
made available when and if a definitive agreement is reached. If
completed, the acquisition will triple ThermoEnergy's total number of
employees and provide a diversified customer base. The agreement
anticipates that upon completion, Mr. Jeffrey L. Powell, President and
CEO of CASTion, will join ThermoEnergy's executive team.
"The acquisition of CASTion is linked directly to enhancing
ThermoEnergy's core business of municipal and industrial wastewater
treatment and its ability to capture and maintain market share," said
Dennis C. Cossey, CEO of ThermoEnergy. "The post-acquisition entity will
not only be stronger financially but provide the human resources capable
of growing the company on a global basis."
"There are
significant synergies that exist between CASTion and ThermoEnergy, and
the combination of the two companies presents a unique opportunity to
the customers, employees and shareholders of both companies," said
Jeffrey L. Powell, CEO of CASTion. "We have worked closely with
ThermoEnergy over the last two years and are excited about joining the
ThermoEnergy family," stated Mr. Powell.
About
CASTion
CASTion is a privately-held, 20-year-old
award-winning company, with offices in Massachusetts, Florida,
Louisiana, Ohio and California, that provides customized turnkey systems
for industrial wastewater treatment. CASTion offers a comprehensive
range of products and services including vacuum distillation,
evaporators, reverse osmosis, ion exchange, oil/water separators and
specialty products. CASTion has successful installations across the
U.S., Canada, Mexico and Japan. CASTion's customer base includes the
military, power generation, mining, food processing, beverage,
automotive, chemical process, refining, micro-electronics, municipal,
heavy manufacturing, textile and semi-conductor industries. Additional
information on the CASTion can be found on its website at
www.castion.com.
About ThermoEnergy
Founded in 1988, ThermoEnergy is a diversified technologies company
engaged in the worldwide commercialization of patented and/or
proprietary municipal and industrial wastewater treatment and power
generation technologies. The economic and environmental matrix of the
Company's technologies represents a significant advancement in these key
infrastructure industries. The Company currently has offices in Little
Rock, AR, Hudson, MA, and New York, NY. Additional information on the
Company and its technologies can be found on its website at
www.thermoenergy.com.
This press release includes
statements that may constitute "forward-looking" statements, usually
containing the word "believe", "estimate", "project", " expect" or
similar expressions. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
continued acceptance of the company's products and services in the
marketplace, competitive factors, changes in regulatory environments and
other risks detailed in the company's periodic report filings with the
Securities and Exchange Commission. By making these forward-looking
statements, the company undertakes no obligation to update these
statements for revisions or changes.
CONTACT: Andrew T. Melton, CFO
(501) 376-6477
Tel
(501) 375-5249 Fax
SOURCE:
ThermoEnergy Corporation
Copyright Business Wire 2006
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