RIVERBANK, Calif., Aug. 12, 2005 (PRIMEZONE) -- Itec Environmental Group, Inc. (OTCBB:ITEC) is pleased to announce that The Elevation Fund, LLC has committed to Itec and deposited into escrow, funds sufficient to enable Itec to begin construction on and ordering equipment for Itec's first Eco2(tm) Environmental System Plant. This commitment enables Itec to begin drawing on the $2,000,000 low-interest "matching funds" loan from the California Integrated Waste Management Board's (CIWMB) Recycle Market Development Zone Loan (RMDZ) Program. Itec expects to break escrow on The Elevation Fund loan within the next week and complete initial construction of its first Eco2 Environmental System Plant within the next 60 days.
Itec recently began ordering equipment towards completing production of the Eco2 Environmental System Plant. The CIWMB has informed Itec that CIWMB is prepared to distribute from escrow the initial disbursement of the $2,000,000 loan upon receipt and approval of equipment invoices, seventy-five percent (75%) of each invoice to be paid from the CIWMB loan funds, with the remaining twenty-five percent (25%) coming from Itec's working capital, including The Elevation Fund commitment.
"The commitment from The Elevation Fund represents the completion of another important goal for Itec that will enable Itec to initiate operation of its first Eco2 Environmental System Plant," stated Gary De Laurentiis, Chairman and Chief Executive Officer. "Once the plant is operational and the first phase of our business plan complete, Itec intends to begin deployment of Eco2 Environmental System Plants on both a national and international scale," added Mr. De Laurentiis.
The Eco2 system uses a patent pending process to clean PET and HDPE post-consumer plastics more efficiently than Itec's competitors. This technology provides benefits to both Itec and its customers. Itec expects to begin initial operations of its first Eco2 Environmental System Plant within the next 60 days and to be fully operational within the next four months.
About the Company
Itec Environmental Group offers solutions to pressing environmental problems faced by public agencies and private entities involved in the recycling of plastics. In a research partnership with Honeywell FM&T, Itec has developed and successfully commercialized a new system for the recycling of plastic containers. Its proprietary Eco2(tm) System costs 30% less to operate, uses no water, removes all contaminates and odors from the finished flake, is closed-loop and thus non-polluting, and produces no toxic by-products.
Please visit our web site at http://www.iteceg.com. Any interested parties wishing to be included in Itec Environmental Group's mailing list, please email your request to info@iteceg.com or Contact: Gary M. De Laurentiis 209-881-3523.
Cautionary Warning Regarding Forward-Looking Statements
This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to attract and retain key executive officers and the professional advisors necessary to guide us through our corporate restructuring; (4) the successful consummation of the $2,000,000 loan through the California Integrate Waste Management Board; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders, creditors and/or former or current investors; (7) the Company's ability to comply with federal, state and local government regulations; (8) the Company's ability to secure raw plastic and produce and sell a large quantity of its PET and HDPE flake; and (9) other factors over which we have little or no control.