CHARLESTON, S.C., July 23, 2004 (PRIMEZONE) -- Wastech, Inc. (Pink Sheets:WTCH) (the "Company"), today is pleased to announce it has executed a definitive agreement to acquire majority control of Absolute Waste Acquisitions, Inc. from its President and CEO, Mr. James D. Wright, for consideration of 8,863,308 shares restricted common stock. Absolute Waste is an environmental waste collection, transportation, and remediation company based in Corpus Christi, Texas. Closing is scheduled on or before September 1, 2004, and is subject, among other things, to finance considerations and the satisfactory completion of due diligence.
Mr. Richard D. Tuorto, President and CEO of Wastech, stated: "The transaction with Mr. Wright and the contemplated acquisition of Absolute stock is strategically about internalizing the control of waste. The Company's holdings upon closing will represent the three basic elements necessary for the successful application of the underlying proprietary technologies: the licensing and intellectual property of the technologies, through NewWaste, Inc.; the transportation of waste, through CV Logistics, LLC and its subsidiary CV Transportation, Inc.; and lastly, the control of the waste stream itself, through Absolute Waste Acquisitions, Inc."
Absolute Waste, formerly a wholly owned subsidiary of Absolute Waste Services, Inc. (Pink Sheets:ABWS), was publicly-held for approximately one year, with plans for a consolidation of small- to medium-sized businesses in the solid waste industry. With limited success of this business objective, effective June 3, 2004, the shareholders of Absolute terminated and rescinded the initial agreement with ABWS, thereby returning the company to its status as a private entity. On July 3, 2004, Mr. Wright, holder of approximately 58.4% of Absolute's outstanding stock, opted for the prospect of Wastech to facilitate its growth, business strategy, and future success in the industry.
James D. Wright stated, "I am honored to be a part of the Company's vision, and share in its commitment to provide alternate, more efficient means of transporting waste materials nationwide. Absolute will greatly benefit by the cost reductions and welcomes the opportunity to introduce and pilot the technologies for Wastech and its affiliate companies to the waste industry."
Based on audited financials as of December 31, 2002, Absolute had annualized revenues in excess of $4.5 Million, with positive earnings and cash flow. As of December 31, 2003 and June 30, 2004, Absolute had annualized revenues of approximately $7 Million and $5.4 Million respectively.
The above release should be read in conjunction with recent submissions of the Company and Absolute Waste Services, Inc. filed with the Securities and Exchange Commission on Form 8-K, and can be obtained online at: (www.sec.gov) or by request directly to Wastech.
Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release which are not historical facts may be "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe Wastech's hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond Wastech's control, will affect actual results. Wastech undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release should be read in conjunction with Wastech's annual report on Form 10-KSB for the fiscal years ended December 31, 2002, 2001 and other filings with the U.S. Securities and Exchange Commission.