CORPUS CHRISTI, Texas, May 15, 2006 (PRIMEZONE) -- CSMG Technologies, Inc. (OTCBB:CTUM) President and CEO Donald S. Robbins issued the following letter to shareholders:
Dear Fellow Shareholders:
Much has happened since our last correspondence, and we are pleased to say it has all been very positive. Both of our patented technologies, purification of landfill gas to pipeline quality gas and the unique live tissue welding technology are moving closer to commercialization.
Landfill Gas Purification
As you know from prior press releases, we signed a 10-year contract with the DuPont Corporation for the purchase of refined landfill gas as the primary power source for one of their large industrial facilities in Alabama. Since the DuPont plant is located 6.2 miles from our landfill location, this will necessitate building a pipeline to transport our gas. There are several options available to us, and we have been exploring which of these to undertake.
We understand there has been some frustration on the part of our shareholders over the delay in getting the pipeline in and starting to produce and sell gas. While we are also anxious to begin gas production, we are mindful of the fact that the negotiations we have been involved with (both to conclude the financing package and the pipeline) are intricate and involve a great deal of capital expense. An agreement that is reached simply to be expedient may well cost the company and our shareholders over the long term. However, we are close to concluding these negotiations, and we should begin the installation process shortly. Once our plant in Alabama is in operation and producing a high-quality natural gas, we believe a number of contracts for new plants will quickly follow.
Live Tissue Connect (LTC)
Interest in our live tissue welding technology has picked up markedly in the past few months, and we are actively being pursued by several U.S.-based companies and several international companies, all of which are interested in a partnering/licensing agreement with LTC to commercialize our technology in their respective markets.
We have had numerous negotiations and offers from medical equipment companies that want to market our wound-repair technology, but none so far have come close to what we believe is the value of this technology. What we have created and patented will revolutionize surgery as it is practiced today, and it has many specific applications: endoscope, OB/GYN, urology, organ repair (including difficult tasks like spleen and lung tissue repair) neuro, thoracic and numerous others. While testing has been limited to date, we believe the tissue welding technology will successfully repair damaged tendons and ligaments.
Again, we are carefully choosing our partners or licensees for LTC, as we want to maximize the future revenue stream derived from these products. To this end, we feel the companies we are in discussions with are likely to offer that opportunity. Timing is always difficult to predict with negotiations such as these, but we feel we can reach an agreement with one or more of these parties later this year.
We will continue to keep you informed as we make progress on both fronts. As always, your continued interest and support of our company is much appreciated, and you may rest assured the delays we are experiencing, while frustrating over the near term, are only temporary and are expected to result in greater rewards for us all. Our goals remain unchanged -- to successfully grow the company and enhance shareholder value. We think you will see significant progress on both fronts this summer.
Best Regards, Don Robbins, Chairman and CEO
About CSMG Technologies
CSMG Technologies maintains offices in Corpus Christi, Texas; Washington D.C.; Atlanta, Ga.; and Kiev, Ukraine. For CSMG's stock quotes, visit http://www.otcbb.com. For more information, visit http://www.ctum.com, e-mail publicrelations@ctum.com, or contact Don Robbins at (361) 887-7546.
An online investor kit containing CSMG press releases, SEC filings, current Level II price quotes, interactive Java, stock charts and other useful information for investors can be found at http://www.hawkassociates.com/csmg and http://www.hawkassociates.com/csmg/kit.htm.
Investors may contact Don Robbins or K. Bruce Jones, CSMG, at (361) 887-7546, publicrelations@ctum.com, or Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, info@hawkassociates.com.
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.