MENTOR, Ohio, Sept. 19, 2001 – Pegasus Technologies, Inc., a majority owned subsidiary of KFx Inc, announced today the signing of an agreement between Pegasus and Ultramax Corporation that is expected to result in Pegasus acquiring the assets related to Ultramax’s United States power generation business segment and obtaining exclusive rights to Ultramax’s process optimization technology for utility coal fired boilers, gas turbines and other power generation technologies.
Additionally, Pegasus and Ultramax have entered into a non-exclusive agreement for industrial-based boilers.
The proposed transaction is expected to provide Pegasus with an installed base of over 200 units, representing 30 utilities in the U.S. alone. International rights for the UK and Canada are also included in the proposed transaction.
Pegasus and Ultramax will negotiate a definitive agreement for Pegasus to acquire Ultramax’s related assets and exclusive rights to software products in the process optimization segment for utility-based coal fired boilers and gas turbines, including Ultramax’s existing backlog, work in progress, future maintenance and reseller relationships for the power generation segment.
“The purchase of Ultramax Corporation’s power generation assets, and exclusive licensing of their sequential optimization technology significantly improves Pegasus’ position in the field of power plant optimization,” said Gary Nicholson CEO of Pegasus, “Pegasus Technologies has a vision that, by the application of science and advanced smart controls technologies, we can deliver to our partners and clients the correct solutions to their Power Generation optimization strategies. Our corporate focus is at the cutting edge of Power Generation – unit level optimization – providing a total solution, from consulting, software, application engineers, combustion engineers, installation, and maintenance to our clients, through to joint research and development for specific issues faced by utilities trying to get the optimum performance from their asset base. The Pegasus strategy is to seek out “best in class” technologies for the power generation industry and apply them in a coordinated fashion. We are creating a toolbox of the latest scientific techniques (Neural Networks, Artificial Intelligence, Expert Systems, Fuzzy Logic) and combining them with a range of proven elements (first principle models, sequential optimization, etc.).
“Pegasus combines specific knowledge of combustion applications with a vision for the role information technology will play in the future of power generation,” said Carlos W. Moreno, CEO of Ultramax, “Our customers will receive immediate benefit from access to this knowledge and vision. Ultramax Corporation is looking forward to working with Pegasus in developing products to greatly enhance optimization performance by blending the speed and flexibility of ULTRAMAX® with the quality and depth of neural network technology. Sequential empirical optimization within the Pegasus strategy provides flexibility and speed in the realization of optimization benefits – reduced emissions, improved performance and rapid response to changes in regulatory or business conditions. Ultramax Corporation is confident this relationship with Pegasus Technologies will significantly advance the promise of optimization to preserve natural resources, protect the environment and contribute to global quality of life.”
About Pegasus / KFX
Pegasus Technologies, Inc. is the industry leader in neural network based IT applications for the power generation market. The NeuSIGHT and Power Perfectorà¢â€ž- suite of combustion optimization applications from Pegasus reduce emissions and increase efficiency of fossil fueled electric generating units. The Pegasus Technologies web site address is www.pegasustec.com. Pegasus Technologies is majority-owned by KFx Inc. KFx provides total fuel solutions for the power industry. Its patented K-Fuel® process converts low heating value coal into clean, high energy fuel. KFx’s web site address is www.kfx.com.
About Ultramax Corporation
Ultramax Corporation is the industry leader in sequential empirical optimization technology and methodology. Through partnerships in global markets and business segments, Ultramax works with customers in all industries to maximize business profitability through improved industrial process control adjustments. The Ultramax Corporation web site is www.umaxcorp.com. Ultramax Corporation is a privately held company with headquarters in Cincinnati, OH.