WILMINGTON, Del., Nov. 20, 2003 (PRIMEZONE) -- Martin Tutschek, President of Delta Capital Technologies, Inc. (OTCBB:DCTN) reports that the company has executed a Letter of Intent under which Delta Capital Technologies, Inc. ("Delta") is prepared to acquire for US$1,000,000 a 30% interest in 24 Hour Emergency Glass Ltd ("24 Hour") the pre-eminent glass provider for the bonded film and television industry in British Columbia.
24 Hour has been in operation since 1986 and its principle business began as simple windshield repairs and replacements for vehicles. Over time, the Company formed relationships with local producers and tradespeople in the film and television industry and began supplying and installing glass on production sets. The outstanding service and immediate response time to the needs of their customers solidified 24 Hour's position as the pre-eminent glass provider for the film and television industry in the Lower Mainland of British Columbia. Today, when glass is required on any production set, 24 Hour is the first choice for the local industry.
From 1996 to 2002, sales increased from CDN$659,000 to CDN$1,175,000 per year. For the period August 1, 2003 to October 31, 2003, sales exceeded CDN$880,000, with booked orders of an additional CDN$1 million through November to February 2004. Projected sales in British Columbia for fiscal 2004 are CDN$2.5 million (vs. CDN$1.5 million for fiscal 2003), representing approximately CDN$900,000 of pre-tax income.
The Market and Expansion Plans.
Vancouver is the second largest film production center in the world, trailing only Los Angeles. Production value in British Columbia is just over CDN$1 billion per year, while Los Angeles production value exceeds US$43 billion per year. The glass expense component for these markets are equal to CDN$3,000,000 and US$130,000,000.
24 Hour plans to expand into Los Angeles in 2004. The expansion to LA will be seamless due to the fact that the same suppliers and customers operate in both locations. LA, as per the industry contacts and customers, lacks a dedicated glass supplier and welcomes the expansion of 24 Hour with excitement and a sense of relief that, finally, someone will be dedicated to providing glass.
Projected sales for the LA operation for Fiscal 2004 and 2005 combined are US$25 Million.
Delta Capital will continue to aggressively pursue proven emerging companies that are poised for tremendous growth. Each of the specific enterprises or operations to be reviewed will have to meet certain minimum asset value and cash flow requirements in order to be considered for potential acquisition.
Cautionary Statement: This news release may include certain "Forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act, as amended. All statements, other than statements of historical fact, included in this release are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements in this release are expressly qualified by this notice.