HiEnergy Executes a Preliminary Assessment Agreement for Engineering and Construction of a Manufacturing Facility with Production Capacity of up to 1,000 CarBomb Finders a Year
IRVINE, Calif.--May 18, 2004--| HiEnergy Places Orders for Key Components of first 10 CarBomb Finder(TM) Units |
HiEnergy Technologies, Inc. (OTCBB: HIET) is pleased to announce that it has entered into a Preliminary Manufacturing Facility Assessment Agreement with Western Division of Lockwood Greene Engineering and Construction Co. Under this agreement, Lockwood Greene agrees to conduct an assessment with HiEnergy of a manufacturing facility with a capacity to produce up to 1,000 CarBomb Finder(TM) units per year.
On May 3, 2004rd and 4th, 2004, Lockwood Greene's Director of Industrial Services and Senior Manufacturing Consultant visited HiEnergy's offices and conducted meetings with HiEnergy's scientific and management teams. On the basis of these meetings and upon further studies, Lockwood Greene has agreed to provide the Company with a report detailing preliminary layouts and estimates of facility needs for the manufacturing and production of up to 1000 units of the Company's current devices.
"To bring a hi-tech invention, which just three years ago was considered a 'clever but far from practical idea,' to the stage of designing an industrial manufacturing plant - is a culmination of ceaseless effort by our small, young but highly professional scientific and engineering team whose average age is 31," said Dr. Bogdan C. Maglich, CEO and Chief Scientific Officer, HiEnergy Technologies, Inc.
Lockwood Greene's participation is implemented within the framework of the Dallas Forth Worth Homeland Security Alliance, which includes The Boeing Company, Siemens Maintenance Services, LLC and Ball Janik, LLP in Washington D.C. who provide services relevant to the Homeland Security Industry, Government Agencies, and Universities. The Alliance's efforts include working directly with government representatives at the state and national level through an existing organized group of agencies and corporate experts established to identify the solutions needed to protect the infrastructure and citizens of the United States. Lockwood Greene, a wholly owned subsidiary of CH2M HILL is a world leader in process technologies and systems integration. Lockwood Greene's 2200 professionals provide a wealth of expertise for design, installation and commissioning support.
HiEnergy is also pleased to announce that it has executed purchase orders for key components of 10 CarBomb Finder(TM) units. The Company anticipates that it will begin initial phases of production of these CarBomb Finder(TM) units in July 2004. One of these components will be made according to the Company's proprietary requirements pursuant to these purchase orders. Although HiEnergy has not received purchase orders from any customers for its CarBomb Finder device to date, it intends to continue limited marketing of the CarBomb Finder device.
About HiEnergy Technologies, Inc.
HiEnergy's Stoichiometric CarBomb Finder 3C3(TM) is the Company's first device to be commercialized. HiEnergy believes its stoichiometric technology also has potential application in various other related and discrete markets, including the detection of smaller bombs, unexploded ordinance detection, landmine detection, airport security screening, bio-weapons detection, contraband detection, and chemical and petrochemical industry applications. Dr. Maglich and HiEnergy have developed the technology through several years of research funded by both the private sector and contracts from the Department of Defense and U.S. Customs.
FORWARD-LOOKING STATEMENTS
The matters discussed in this press release contain forward-looking statements about HiEnergy's future business plans and operations. The actual results that HiEnergy achieves may differ materially from any forward-looking statements, and its plans may change based on changing business conditions. Among such factors that can cause such differences are the following: loss of components from third-party suppliers; delays in or failure to achieve market acceptance of our devices; uncertainties regarding our ability to market and sell our devices; competition; uncertainties related to the cost and outcome of legal disputes; and the loss of key personnel. These forward-looking statements are based on current expectations, and HiEnergy assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by HiEnergy in its reports filed with the Securities and Exchange Commission, including the section entitled "Risk Factors" on our Form 10-KSB for the fiscal year ended April 30, 2003.