Environmental Solutions Worldwide, Inc. Subsidiary Executes Contract With Nissho Iwai Canada Ltd.
MARKHAM, Ontario--Sept. 5, 2001--Strategic Partnership Propels Initial Entry Into The Mexican Market.
Contract Could Potentially Generate $39 Million USD
Over A Three-Year Period
Environmental Solutions Worldwide, Inc. (ESW) (OTCBB:ESWW), a company that develops, manufactures and markets environmental technologies, today announced that the Company's wholly owned subsidiary, ESW Canada, Inc., has executed an exclusive distribution contract with Nissho Iwai Canada Ltd. The agreement pertains to the sales and distribution of ESW's Enviro-Cat(TM) gas catalytic converters, Clean Cat(R) diesel catalytic converters as well as the RC-2 converter cleaning consoles into the country of Mexico.
Nissho Iwai Canada Ltd. is in the process of obtaining Mexican government emissions certifications for both the ESW Enviro-Cat(TM) and Clean Cat(R) automotive converter product lines. The Company intends to initiate diesel and gas catalytic converter sales throughout Mexico within their existing distribution infrastructure. Subject to Nissho Iwai Canada Ltd. obtaining Mexican government emissions certification, Nissho Iwai also intends to develop additional lines of distribution channels to enhance the sale of the product lines.
The agreement provides Nissho Iwai Canada Ltd. with the exclusive right to distribute the ESW retrofit and aftermarket automotive gas and diesel catalytic converter lines and cleaning consoles in the country of Mexico for the next three years, pending certain sales quotas are met. The agreement also carries with it an option for an additional two years.
Commencing October 31, 2001, the exclusive rights are subject to Nissho Iwai Canada Ltd. generating a minimum sales quota totaling 100,000 units the first year, 200,000 units in the second year and 300,000 units in the third year. Provided Nissho Iwai meets the minimum quota of 600,000 units over the three-year period, ESW will realize approximately $39 million USD in product sales.
David Johnson, ESW's Chief Operating Officer, commented, "We are very pleased with the attention that is being focused on ESW's growing product lines by global companies over the past months. Forming strong business relationships with international companies like Nissho Iwai Canada Ltd. will continue to enhance ESW's worldwide presence."
Robin M. Hughes, Corporate Administrator for Nissho Iwai Canada Ltd., commented, "After much negotiation, we are very excited to finally be working with ESW Canada, Inc. on this distribution arrangement and look forward to being a key strategic partner in the growth and expansion of an environmentally significant company. Nissho Iwai has been involved in the automotive distribution market for years and has seen the significant growth opportunities for the product line increase as governments continue to move toward regulating tighter emissions standards worldwide."
About Nissho Iwai Canada Ltd.
Nissho Iwai Canada Ltd. is a division of Nissho Iwai Corporation based in Tokyo, Japan. Nissho Iwai Corporation is one of the world's largest vertically intergraded trading companies with annual sales transactions exceeding more than $90 billion USD. Worldwide, Nissho Iwai Corporation has 31 domestic and 133 overseas offices employing 2,720 people worldwide.
To find more information about the Company, please visit their Web site at http://www.nisshoiwai.co.jp/ni/e/tradepia.html
About Environmental Solutions Worldwide, Inc.
Headquartered in Toronto, Environmental Solutions Worldwide, Inc. is a publicly traded research and development company engaged in the design, development, manufacture and marketing of environmental technologies currently focused on the international automotive and transportation industries.
To find more information about the Company, please visit our Web site at http://www.cleanerfuture.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding discussion, the words "pleased," "plan," "confident that," "believe," "expect," or "intend to," and similar conditional expressions are intended to identify forward looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the Company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks described in the Company's SEC reports and filings.