SUGAR LAND, Texas, Aug. 12 -- (OTC Bulletin Board) -- The following is a letter from Exousia Advanced Materials CEO, J. Wayne Rodrigue:
Given all the positive developments under way and the milestones that have been achieved, I thought I would take this opportunity to update all of you on our Company's progress. Foremost, thanks to all of you for your continued loyalty to Exousia. I wholeheartedly believe everyone will be rewarded as our Company continues to grow.
China
First let's look at our business in China; I know this is a subject that is on a lot of our minds. Exousia continues to take steps forward with its PowerShield Industrial Coatings business. The build out on our first coatings production plant in Tianjin is nearly complete. Equipment has been ordered and should be delivered in late August. The blending equipment in this 30,000 square foot facility is capable of producing 120,000 gallons of coatings per month. This equates to approximately $4M USD in monthly revenue. The plant was designed to accommodate expansion. As we approach higher sales volumes, additional equipment can be added and production shifts can be increased.
Paul Crozier, Exousia's VP of Industrial Coatings will be deployed shortly to Tianjin to begin training our Chinese manufacturing and sales team and distributors in preparation operations. The wonderful news is that the company has several thousands of gallons of coatings backlogged, waiting for production to commence. Distribution agreements are also in place with top-level companies to whom we will begin shipping product in the near future. If all continues well we should ship the first PowerShield coatings from the Tianjin Plant in late September.
North America
Next let's turn our attention to Exousia's North American coatings business. Our Aegeon brand, manufactured in our Channelview, Texas coatings plant, is showing consistent revenue growth and steadily gaining market penetration. We are becoming a brand known for its toughness in highly corrosive environments. To maintain our advanced coatings edge, we are always striving to produce the next generation of Industrial Coatings designed to solve specific problems. As an example, Aegeon has developed a coatings solution designed to withstand the constant shear and impact that degrades railroad hopper cars. Consequently, we are working with large international owners of these cars to have our Aegeon Coatings specified and put in use.
Aegeon's catalog of advanced coatings and industrial epoxy formulas is expanding, designed to maintain our position as a leader in specialized industrial coatings.
Our commercial truck box customer for RPA sheets and TrussCore, American Cargo, now has several trucks that have achieved the historical marker of two years on the road. Exousia's stronger, impact resistant and lighter-weight RPA used to construct truck cargo boxes results in significant fuel savings. Consequently, RPA truck cargo boxes are attracting more and more attention.
As a company, we are focused on this large market and we do expect increased orders for RPA sheets and TrussCore from the cargo box industry.
Native American Nations
Most recently, Exousia announced a new relationship with various Native American Nations making the Company eligible to flow its products as a subcontractor for various federal contracts. Exousia is designated as a supplier of choice to provide Structural Insulated Panel Systems (SIPs) for government sponsored contracts to construct desperately needed workforce housing. The pent up demand is strong. Estimates for federally funded housing are in the thousands. Exousia receives multiple requests for proposals almost daily. We anticipate SIPs will produce significant revenue for Exousia in the coming months and years.
As Exousia's CEO, I am truly excited about the potential that lies before us. We are positioned to take advantage of a sales pipeline packed with opportunities. We now have the infrastructure in place to implement our business strategy, which is resulting in significant quarter-over-quarter revenue growth. Our public position has always been that the second half of 2008 will demonstrate the successful implementation of our business model. I am looking forward to updating our shareholders over the coming months as these opportunities convert into revenue growth.
Thank you once again for supporting your company. We look forward to enjoying our future successes with all of you.
Best Regards,
J. Wayne Rodrigue, CEO
Exousia Advanced Materials, Inc.
FORWARD LOOKING STATEMENTS
Statements released by Exousia Advanced Materials, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
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