Quantum Group Inc. Receives a $3.4 Million Order

14 January 1999

The Quantum Group Inc. Received a $3.4 Million Order for Specialized Tire Reduction Systems and Crumb Rubber Product Manufacturing Equipment

    TUSTIN, Calif.--Jan. 14, 1999--The Quantum Group Inc. (OTC BB: QTMG) Thursday announced they had received a purchase order for approximately $3.4 million (USD) for specialized equipment to manufacture a wide range of value-added after market products using crumb rubber, recovered from scrap tires, and REVULCON(R) equipment to partially devulcanize crumb rubber.
    The patented reactivation process, exclusively marketed by the company, changes rubber scrap, previously burned or land filled, into REVULCON(R), a new partially devulcanized crumb rubber material suitable for a wide range of product applications including incorporation into new tire manufacture. This will potentially enable The Quantum Group to be a supplier to the worldwide tire manufacturing industry, presently worth in excess of $70 billion (USD). (Source: European Rubber Journal London Vol. 179 Global Tyre Report 1997.)
    This equipment will be delivered to this project, located near Chemnitz, Dresden, Germany, which is being purchased by a German Investment Group, on behalf of its German clients.
    The Quantum Group will supply the equipment in various stages over the next 12 months, with shipments beginning during the second quarter of 1999.
    Other innovative products to be manufactured, utilizing Quantum technology, will be a new "heated mat" product, which has a patent pending and ingeniously combines a heating coil, developed in Germany, which is cast inside a solid rubber mat, that can be used for several applications including keeping pets warm outdoors, as well as a heated anti-fatigue mat used both indoors and outdoors. Further development work will soon be underway to expand this unique product to include indoor integrated flooring applications.
    Combining innovation, superior research and proprietary breakthrough technology from America and Europe, Quantum Group converts previously wasted rubber truck and automobile tires, without chemicals or additives, into value-added, marketable, new products for industrial and commercial use.
    The company's global business is conducted in the United States, Canada, Mexico and Brazil, Europe and the Middle East.
    For further information, contact Ehrenfield Liebich, chief executive officer or Keith J. Fryer, executive vice president: The Quantum Group Inc., Park Irvine Business Center, 14771 Myford Road, Building "H", Tustin, Calif. 92780. Tel: 714/508-1470 or toll-free, 800/660-3734, fax: 714/508-1475 or e-mail: info@thequantumgroupinc.com.

    The foregoing news release contains forward-looking statements. For this purpose any statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors.