MOSCOW, Dec. 10, 2007 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) today announced an update of corporate activities. In this press release we clarify previous statements of the Company, update interested parties on the Company's progress certain of its endeavors and discuss some of the new initiatives being undertaken. The company intends to provide further information prior to year end on these and other endeavors which the Company has developed in 2007. NNRF, Inc. is hereinafter sometimes referred to as the "Company".
ZAO Atoll
Atoll's third quarter results are currently being reviewed by 2K Audit and management of ZAO Atoll. The Company believes it will be in position to release these results by December 14 2007.
The year end audit of Atoll is scheduled to begin the week of January 20, 2008. As previously reported NNRF's US auditors intend to be in Moscow to supervise the Atoll year end audit.
Atoll completed its move from its original location in St. Petersburg during the third quarter of 2007. Atoll has divided its production processes between St. Petersburg and the region of Kirov. The St. Petersburg location will be responsible for highly technological manufacturing processes. The Kirov facility will be responsible for the manufacture of parts and components that are more labor intensive. The move to Kirov is part of the larger plan to put together manufacturing lines of all companies in which NNRF has investment and thereby gain a wide variety of operating efficiencies. Senior management, marketing and reporting departments of Atoll are now located in Moscow.
On December 3, 2007 Atoll appointed Mr. Todd Sinclair, NNRF's Chief Financial Officer, to the Board of Directors of Atoll . Mr. Sinclair will work closely with Atoll on ensuring that Atoll's accounting system meets US GAAP standards and that quarterly financial results will be released in accordance with SEC requirements. Atoll's Board of Directors has ratified full and transparent reporting in accordance with SEC regulations. As a result the Company will be able to include its share of Atoll's revenues in our accounts. Mr. Sinclair will join Mr. Peter Goerke, NNRF's Executive Vice-President, on Atoll's Board of Directors. Mr. Goerke works closely with Atoll operating management on administrative and operating issues and has been instrumental in identifying acquisition targets and negotiating and consummating transactions for the Company.
NNRF and Atoll management will be meeting in the last half of December to review the Atoll 2008 order book.
Velcont and JSC ElectroPrivod
During the third quarter the Company made its first investment of $475,000 in Velcont. This represents 4% of the issued and outstanding stock of Velcont. Under the terms of our Letter of Intent NNRF intends to own 24.5% of Velcont.
Velcont is a manufacturer of parts for the energy, automotive and aviation industries in Russia and its 450,000 square foot manufacturing plant gives it the capability to become a technological production center in Russia. Recent reports in Russia state that Russia's booming auto market is estimated to become Europe's largest car market by 2011. As a major producer in the automotive market, Velcont anticipates participating in this expanding market. Velcont is located in the Russian region of Kirov. There is a large supply of well educated and skilled workers living in the Kirov region.
Final terms and conditions of the JSC ElectroPrivod acquisition will be negotiated after NNRF acquires its initial 10% of Velcont. The Company is working closely with its investment bankers to secure the financing needed to meet these funding requirements.
RUAR
As part of NNRF's continuing due diligence, representatives of NNRF recently toured Russian manufacturing facilities operating in the welding and cutting industries. The potential RUAR investment plan includes funding the acquisition of certain welding and cutting related companies in Russia. Site visits by NNRF staff to these potential acquisitions will be part of NNRF's due diligence process. The closing of this acquisition must await conclusion of due diligence satisfactory to the Company.
FEECOM/BIECOM
The Company is currently negotiating the first installation of FEECOM/BIECOM in a German based medical facility which has medical operations including computer thermographs and radio pharmaceutical equipment. NNRF representatives have met with management of the medical facility. The Company has been asked to provide a turn key installation of the FEECOM/BIECOM shielding materials.
FEECOM/BIECOM is produced in Hanover Germany and production quality is controlled by the Fachhochschule Hanover, a technological university that has entered into a production agreement with NNRF.
The Company plans to purchase new equipment that will increase production levels and allow NNRF to make various molds of FEECOM/BIECOM bricks and other forms that will be used by customers.
During the month of December the Company expects to be informed by E.ON nuclear facility management of their selection of an initial nuclear power plant for the test installation of FEECOM/BIECOM. E.ON nuclear facility management will be meeting during December to select a German nuclear power plant for this test installation. E.ON is one of the largest generators and suppliers of energy in Europe and is also involved in Russian generating companies. NNRF expects that the installation of FEECOM/BIECOM at the selected site will begin in January 2008.
NNRF recently presented its encapsulation and shielding materials at the AtomEco 2007 exposition in Moscow. This exposition was hosted by the Russian Federal Agency of Nuclear Energy and brought together leading suppliers and users of various nuclear technologies in the field of nuclear waste management. NNRF was a co-sponsor of the event and Dr. Hans-J. Engelmann the company's Head of Shielding and Encapsulation gave a presentation of our shielding and encapsulation materials at the exposition.
The production and sale of FEECOM/BIECOM in the European Union represents a diversification of product lines of a product owned by the Company and sales outside Russia.
NuCap
During October and November the Company worked closely with Dow Corning staff in Germany to reproduce NuCap for coating applications that are representative of expected future requirements. This product has experienced delays in production and engineering due to issues related to the means, manner and necessary formulation to apply the substance in the field. As a result of these meetings, Dow Corning and NNRF scientists have further developed NuCap into a product that can be applied to radiation contaminated surfaces such as walls, floors and other contaminated areas. The Company is now working with Dow Corning and third party equipment suppliers to specify spraying and tooling equipment for NuCap application. These suppliers will include manufacturers of remote control applicators.
No sales of this product have occurred to date in commercial quantities and further engineering is required for this to occur.
EP
The Company has recently completed an extensive review of power quality issues in Russia. This review included an analysis of the market based on NNRF efforts over the past year. While this review confirmed that power quality is a concern to Russian consumers the Company has determined that the market for residential power quality equipment will develop more slowly than originally forecast. The Company will not achieve the projected revenues of $8.0 MM in 2007 as previously reported.
The Company will continue to develop a market for power quality products and continue its working relationship with its Tatarstan dealer StroyKomplektInvest (SKI). In addition, NNRF will direct marketing efforts to identified industrial and commercial applications. While the Company will continue to work at developing this market at this time we are unable to forecast revenues for 2008. This project will be handled in a separate profit center under the responsibility of its subsidiary OOO Nucon-RUS headed by the General Director of OOO Nucon-Rus, Mr. Alexander Stepanenko.
Trumem
Trumem is a liquid filtration system that is capable of decontaminating radioactive contaminated water as well as other kinds of polluted water. Trumem is a porous metallic-ceramic membrane, with a high-output, long-lasting, inexpensive and compact purification unit for all kinds of liquid wastes, including radioactive waste. Applications of Trumem include conditioning and cleaning of liquid radioactive waste and contaminated water, filtration of toxic liquid waste and cleaning of industrial water.
In early 2008 the company's Chief Scientist, Professor Dr. Valery Lebedev, as a co-inventor of Trumem, will focus efforts on defining different applications and developing specifications necessary to respond to requests from potential European customers.
Atomenergomash
Atoll continues to develop its relationship with Atomenergomash (AEM) through the existing joint venture between Atoll and Atomenergomash. AEM is a state producer of parts for nuclear power plants and they anticipate investing one billion dollars over the next two years for modernization and widening their portfolio of industrial assets. Atoll was recently asked to appoint one of its representatives as Chief of Operations of the joint venture. Atoll and AEM will be working together through the joint venture on future opportunities in the markets that can be served by Atoll products and engineering capabilities.
Egypt
In October the Company submitted a proposal to the Egyptian Environmental Agency for the handling and disposal of Egyptian hazardous waste. The proposal included a feasibility study and development of a strategic plan for waste management issues in Egypt. To date the Company has not received official information on the decision by the Egyptian agency to proceed with this proposal
South Korea
The Company has been conducting negotiations with Korea Nuclear Industry Co., Ltd. a South Korean company involved in radiation decontamination and waste management. Representatives of Korea Nuclear Industry Co. will come to Germany in January for formal meetings and to negotiate a formal marketing agreement for NNRF's shielding and encapsulation materials in the South Korean region.
NASD
The Company, along with its sponsor Newbridge Securities, are working on the NASD comments as part of the process that will enable the Company to list on the OTCBB. A prerequisite to listing was the effectiveness of the Company's Form 10SB which occurred on October 5, 2007.
Russian Trading System
Company representatives have met with senior staff of the RTS several times during 2007. The purpose of the meetings was to discuss the issues related to a possible dual listing on the RTS. The Company intends to have further discussions in 2008 after the internal Russian laws and regulations for dual listing of foreign companies are finalized and enacted. Valery Zubov, a member of the Company's advisory Board, was recently re-elected as a member of the Russian Parliament, the Federal Duma. Mr. Zubov was elected in the Krasnoyarsk Territory as a member of the political party Just Russia. Mr. Zubov was instrumental in the creation of the Russian Fund market. The Company believes it will benefit from his guidance in negotiations with the RTS and Russian brokerage houses.
At the National Investment Banker's Association convention held in November the Company sponsored the convention's keynote speaker, Ms. Elena Avakyan, the Department Head of the Russian Supreme Arbitration Court. NNRF continues to develop working relationships between the RTS and the North American investment community.
The Company is reviewing the possibility of listing on a major European Stock Exchange.
Munich Office
The Company has relocated from Berlin to Munich. Munich is closer to the companies scientific and production partners such as Studsvik, and suppliers of raw materials for FEECOM/BIECOM and NuCap. In addition the move was made in order to ease travel into Russia and the United States from Europe.
Other Matters
The Company has no knowledge of the counterfeit printing of Company shares. The Company has not replaced its stock transfer agent. Any statements regarding counterfeit shares and/or replacing the Company's transfer are hereby denied.
About NNRF
NNRF is a U.S. corporation with executive and operations offices in Moscow Russia, Munich Germany and North America. NNRF through its Russian based partners offers design and manufacturing of specialized products for nuclear reactors, nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF's management team has extensive industry and government service including significant 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 potential and other prospective presentations by NNRF. 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. NNRF 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 NNRF's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.