MOSCOW, Oct. 31, 2007 (PRIME NEWSWIRE) -- NNRF, Inc. (Pink Sheets:NNRI) today announced that its manufacturing partner ZAO EMPB ATOLL has reported its U.S. GAAP Q2 review.
The review, which was completed by ATOLL's auditors, CJSC Independent Consulting Group 2K Audit - Business Consulting, provides confirmation that the company continues to successfully meet income forecasts. ATOLL reported Q2 2007 gross revenues of US$19 Million and net after tax income of US$4.25 Million. NNRF owns 50% of ATOLL. Reporting of these results has been delayed due to issues related to the relocation of ATOLL, European summer holidays and logistic problems encountered by 2K during the period. NNRF expects to receive draft Q3 review statements from ATOLL in the first week of November.
NNRF also reports that ATOLL has successfully completed its relocation into new manufacturing facilities. These facilities place ATOLL closer to its customer base and will allow the company to be in regular contact with the end users of its products. In addition, ATOLL management anticipates that this relocation will result in improvements in operating efficiencies and reduction in operating costs.
During August, ATOLL's auditors became a registered firm with the United States Public Company Accounting Oversight Board (PCAOB). Management of both ATOLL and NNRF are dealing with issues related to the U.S. based auditors of NNRF being directly involved in both the quarterly reviews and year-end audit of ATOLL. As a manufacturer of spare parts for nuclear power plants, ATOLL is classified as a Russian secure facility. We are working with ATOLL management and our U.S. based auditors on developing a process that will allow our U.S. auditors to effectively manage and participate directly in the audit of ATOLL. Our U.S. auditors will be meeting with ATOLL's auditors in Moscow in December to plan and coordinate ATOLL's year-end audit. In addition, plans are in place to have our U.S. auditors in Moscow and participating in the year-end audit of ATOLL in January 2008.
NNRF and ATOLL management will be meeting with software suppliers in Moscow to select reporting software capable of generating both U.S. and Russian GAAP financial reports. This software will also allow NNRF management and U.S. auditors on-line access to the financial records of ATOLL for more timely access to financial information.
ABOUT NNRF:
NNRF is a U.S. corporation with executive and operations offices in Moscow, Berlin and Washington. NNRF offers design and manufacturing of specialized products for nuclear reactors and nuclear waste management; proprietary nuclear shielding, decommissioning and decontamination technologies; and engineering/design services for a range of environmental challenges. NNRF owns manufacturing facilities and provides both equipment and services for nuclear power plants and compliance, shielding, transport and interim and final storage requirements for government agencies and nuclear service companies. NNRF also owns or licenses proprietary leading edge technologies which provide NNRF with a market edge in manufacturing, design, engineering and services capabilities. NNRF's management team has extensive industry and government service including extensive in-house expertise in all aspects of radiological protection and radiological waste management. NNRF has entered into strategic alliance agreements with government agencies of the Russian Federation. Access through NNRF's strategic alliances to key processing and disposal facilities in the Russian Federation enables it to complete a broad range of projects efficiently and cost effectively. NNRF believes that this access provides vertically integrated services that distinguish it from competitors. NNRF manufactures nuclear power plant equipment in Russia and has multi-year sales contracts for a significant portion of current production with ROSATOM, the owner and operator of all Russian nuclear reactors. NNRF also provides products, services and proprietary technology based solutions through its strategic alliances to multilateral and bilateral funded projects located in Northwestern Russia known as the Northern Dimension Environmental Partnership (NDEP). This area contains the largest repository of spent nuclear fuel and radioactive waste in the world. The projects involve the decommissioning and disposal of nuclear powered naval vessels of the former Soviet Union. The projects are funded by G-8 member countries. NNRF currently is expanding its marketing to include the European Union, China, India and North America in 2007-08 through strategic marketing partnerships with multinational energy service companies. NNRF is currently engaged in the due diligence phase of potential further acquisitions in 2007-2008 which are intended to substantially increase its current asset and revenue base.
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.