NEW YORK, Sept. 20, 2004 (PRIMEZONE) -- Nevada Holding Group, Inc. (Pink Sheets:NVHG) announced today that it has entered into an exclusive licensing agreement with the Institute of GeoInformational Analysis of the Earth. The Company shall market the Institute's proprietary Remote Earth Sensing (RES) technology. The license covers North and South America and Australia. NVHG may market RES applications non-exclusively in the rest of the world. Total purchase price for the license is $15 million U.S. dollars plus working capital. Both parties plan to finalize this transaction within 90 days. The Geoinformational Analysis technology would enable NVHG to locate for their clients underground mineral deposits or water by processing space images data combining with geological data of the land surface, taken from the satellites, and using proprietary software and specially devised analytical algorithms.
NVHG, soon to be called GeoScanex (www.geoscanex.com), shall market this RES technology to oil, gas, mining, and oceanographic customers throughout North, South America and Australia. A typical service contract, including a full scan of a small to medium size field including all the analysis, will cost the client $500,000-$800,000. Several companies have already expressed interest and approximately 10 jobs are anticipated for 2005. NVHG shall also offer its services to auditing firms, for proof of reserves documentation. NVHG is Exus Global (EXGL) Portfolio Company.
Dr. Ivan Raylyan, Chairman of Institute of Geoinformational Analysis of the Earth and soon to be Chairman of NVHG stated, "Our expansion to North, South American and Australian Markets through our agreement with NVHG symbolizes our technologies strength and enables us to respond to the large number of inquiries we receive on a daily basis. We are looking forward to working with the U.S. based management team. Our partners and staff are prepared to cooperate with them to develop these new markets."
About the Institute of GeoInformational Analysis of the Earth and Scanex
Over the past several years, the Institute, in cooperation with Scanex (www.scanex.ru), has used the RES technology in a number of practical projects according to its customers' requests. The projects were implemented in various regions of the world, such as Africa, the Middle East, the Far East, North America and Russia, and made it possible to predict and localize commercially viable deposits of hydrocarbons, gold and diamonds. The approximate total volumes of the petroleum deposits alone (in localized traps) amounted to some 70 million tons (including some 40 million tons in Sakhalin and 20 to 25 million tons in the Penza area). Gas-related projects included the localization of drilling sites for Burgaz Company (a subsidiary of Gazprom). In gold mining, joint ventures have been set up and have started operating in South Korea. On the whole, the economic effect of adopting the technology varied between 10 million and 15 million tons practically in every project. ScanEx provides full integrated solutions for satellite remote sensing applications and offers cost-effective innovative technologies for Earth imagery collection, dissemination and problem-solving use. For more information on the institute see their web site www.geoscanex.com.
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC.