BOHEMIA, N.Y., June 20, 2003 — NuEnergy Group Inc. announced that it has entered into a Letter of Intent (LOI) to acquire 100% of Hytech Industries, Corp., a contract-manufacturing firm known to the mass transportation industry.
According to the negotiable terms of the LOI, NuEnergy Group, Inc. (NuEnergy) will exchange 3.75% of it’s issued and outstanding stock, as of the date of closing, in the form of unregistered common shares, for 100% of Hytech. The LOI further calls for a definitive agreement(s), now in negotiation, to be entered into at closing.
Closing is further subject to Hytech completing the required audit of its financial statements for consolidation into NuEnergy’s SEC Form 10 filing documents now in preparation. NuEnergy estimates 1,435,000 unregistered common shares will be issued to complete the acquisition.
Hytech is a Bohemia, New York based, 15-year-old affiliated company founded and presently controlled by Hector M. Guevara, NuEnergy’s Chairman, President and CEO. Through Guevara’s stewardship, Hytech has developed long-standing business/supplier relationships with numerous Fortune 500 companies as well as over a dozen local, state and national mass transportation authorities.
Hytech has reported over $1,500,000 in annual revenue as unaudited results for the past 3 fiscal years ending 2-28-2003.
Guevara stated: ” My strategic relationship with Hytech Industries, with its open door access to the mass transportation industry, has always figured prominently in NuEnergy’s plans for TEG marketing and distribution. NuEnergy’s Board of Directors believes this is the appropriate time to formally bring Hytech under NuEnergy’s control so we may present to our shareholders the most transparent picture possible of our business interests, as we work toward completion of our SEC Form 10 filing preparations.”
Victor Ferreira, NuEnergy’s incoming Chief Operating Officer, stated: ” Hytech is a well established, highly visible, known quantity that brings stability, credibility and revenue into NuEnergy from day one. Our management projects the consolidation of Hytech into NuEnergy Group Inc.’s combined holdings, which now include NuEnergy Industries Corp., Big Apple Energy and NuEnergy Gas, LLC, collectively will produce aggregate revenue in excess of $10,000,000 from all operations for fiscal 2003.”
Ferreira added: “This projection does not include any revenue from TEG sales and distribution which may launch late in the fourth quarter and, if so, would be an add on to the present estimate. Hytech’s contribution to facilitating a rapid launch of the TEG via distribution throughout the mass transportation industry, when ready, may prove invaluable.” For more information about Hytech, including details on its business relationships and history, visit the company’s website at: www.HytechIndustries.com.
About NuEnergy Group, Inc.
NuEnergy Group, Inc. is a Long Island, New York based public company trading over-the- counter under the symbol NUER. It’s wholly owned operating subsidiary, NuEnergy Industries Corp., is a manufacturer, distributor, consulting, and research and development firm specializing in alternative energy products. NuEnergy Group Inc. owns and controls the intellectual property, patent, development, marketing and distribution rights to multiple alternative energy products including the patent pending Thermal Electric Generator (TEG).
TEG, short for Thermal Electric Generator, is a patent pending renewable energy device that management believes is a breakthrough technology that may conceivably alter the local and global energy landscape by reducing global dependence on the demand and utilization of fossil fuels.
The TEG is a solid-state module; similar in appearance only to the photovoltaic (PV) modules we currently see and use to convert radiant and diffused light into electricity. The TEG modules, however, work on a completely different, and much higher, principle of efficiency of conversion of heat into electricity.
TEG will work in the dark or under light, as long as there is a conductive, convective, or radiant heat source to create an excitation of electrons producing a chain reaction that results in the usable flow of electricity. In over simplified layman’s terms, NuEnergy’s research and development to date suggests the TEG can convert heat from just about any source directly into usable electricity. It is hoped that this feature will facilitate rapid early market penetration as a cogeneration device in many applications where excess heat capacity is now a wasted burden, such as beneath moving mass transit subway cars, furnaces and other heat producing equipment in industrial plants. NuEnergy’s R&D division has completed the research phase and is working with strategic partners from the private, public, and academic sectors in the development phase.
Currently, development is at the bench testing materials stage, a process that management believes will yield a working prototype in 2 to 3 months. NuEnergy projects launching an initial market entry campaign for the TEG product early in the 1st quarter of 2004. For more information on TEG and its potential applications visit the NuEnergy’s website at www.NuEnergyGroup.com.
About Big Apple Energy
Big Apple Energy is a Queens, New York based market aggregator currently supplying small wholesale marketers. Small wholesale marketers lack the buying power and expertise to effectively compete in the deregulated natural gas market. Big Apple Energy creates value for its clients through its purchasing and outsourcing capabilities. Big Apple Energy aggregates its client’s requirements to give them the leverage of larger marketers and provides scheduling and supply services that they would otherwise have to create internally. Additionally, Big Apple’s consulting services to large end users on energy utilization and utility rate structure analysis has saved clients over $4 million in energy expenses. Big Apple reported six figure profits on over $2,000,000 in revenue as unaudited results for calendar 2002. This year Big Apple reports 2003 revenue is up 100% YTD and projects 2003 revenue will top $6,000,000 before consideration of the benefits of integration into NuEnergy.
NuEnergy Gas, LLC
NuEnergy Gas, LLC is an energy marketer seeking to serve a number of specialized market segments in the natural gas industry. NuEnergy Gas, LLC has already received the necessary approvals from governmental agencies to be an authorized supplier and has qualified supplier status with several local utilities. NuEnergy’s growth strategy entails going after a very narrow and focused segment of the natural gas supply market and expanding it into broader and more lucrative markets as its customer and asset base become more developed.
As a minority owned business, NuEnergy Gas will be taking advantage of the U.S. Federal Government’s Department of Energy Outreach Strategy for enhancing the role of Minority Owned businesses in the natural gas marketplace. The natural gas market is greater than $100 billion per year and yet is largely underserved by the minority community. NuEnergy Gas, LLC’s initial market is in the sales of monthly supplies to natural gas utilities in the New York area. NuEnergy Group is currently completing the acquisition of Big Apple Energy. Through its combination with Big Apple Energy and NuEnergy Gas, NuEnergy Group will secure two additional profit centers and be able to utilize Big Apple’s back-office capabilities to service the natural gas utility sales market.