MOSCOW, July 19, 2006 (PRIMEZONE) -- NUCON-RF, Inc. ("NUCON") (Pink Sheets:NNRF) has entered into a Distribution Agreement with a U.S.-based company, Power Quality Holdings, Inc., to sell and distribute products manufactured by the Nevada based power quality company, Environmental Potentials (EP), throughout the Russian Federation. Sales commenced on July 14, 2006.
EP Waveform Correction Absorber
The EP Waveform Correction Absorber is the highest quality yet affordable transient voltage surge suppression (TVSS) and high frequency noise filtering modular technology available today. It is developed and manufactured by Environmental Potentials (EP). The technology filters damaging power pollution being used by electrical equipment, thereby lowering operating costs and downtime and increasing productivity. The Russian power grid is particularly sensitive to these disturbances due to its lack of modernization and maintenance.
EP Technology
Poor power quality involves pollution on electrical lines resulting from high frequency induced electrical noise, switching transients, and nonlinear and unbalanced load reflections. Power surges, both voltage and current, are occurring continually in today's power systems. Power surges may occur naturally, such as from lighting and static electricity, or are man made, such as inductive surges from motors, transformers, solenoids, etc. 90% of all power quality problems originate from within commercial, industrial and even residential buildings. This poor power quality can wreak havoc on electrical systems B reducing operating efficiency and creating excess heat that displaces normal power distribution and output. This in turn causes electrical systems and equipment to deteriorate and to malfunction. Microprocessor based operating and manufacturing environments are particularly sensitive to poor power quality.
EP has developed a proprietary low pass filter technology that allows it to filter and absorb the power anomaly within the unit itself without sending any anomalies to ground, neutral or back on the line. To date, there is no modular TVSS available that can protect equipment from high voltage surges and spikes as well as filter out a broad range of high frequency noise except the EP-2000 series products.
NUCON conducted beta-test installations of the EP technology in multiple facilities in Russia. The test installations took place during the period December, 2005 - March, 2006. These beta trials were concluded with excellent results, confirming a substantial market potential. One trial was at a main Russian Bank; a second, at a large government owned Russian aviation maintenance facility; and a third, at a casino in central Moscow. The beta-tests both demonstrated the existence of power quality problems in every facility tested and proved that the EP technology could remove these problems after being installed. NUCON believes that the successfully concluded beta trials will result in substantial sales to various Russian government agencies.
During the month of June, 2006, NUCON completed a rigorous government required certification program for various EP models through the same certification agency utilized by the Russian Ministry of Defense. This cleared the way for NUCON to formally begin its sales process of EP units in the Russian Federation.
Sales of NUCON's first 107 EP units then began in July 2006. Units will retail between $3,000-$5,000 on average. NUCON is projecting sales of 300 units per quarter in Russia starting in July of 2006. NUCON projects sales of 4,800 units in 2007 and 12,000 + units in 2008 in Russia. Marketing activities are also progressing in various Republics of the Russian Federation and NUCON believes these markets represent significant potential for further NUCON sales of EP products.
NUCON is a U.S. chartered corporation with executive and operations offices located in Moscow. NUCON-RF has the capability to provide product, technological and engineering support addressing environmental, wastewater, power quality and radioactive waste challenges. These include compliance, shielding, transport and storage requirements, plant equipment protection, energy efficiency and development of techniques for a broad range of radioactive and toxic wastes. NUCON-RF also has extensive in-house expertise in all aspects of radiological protection and radiological waste management.
Safe Harbor Statement
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding announcements of financial results, business potentiality and other prospective presentations by NUCON-RF, Inc. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products in domestic and international markets will continue to expand. NUCON-RF undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in NUCON-RF's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.