The Quantum Group Inc. Acquires Modified Asphalt Technologies
4 April 2000
The Quantum Group Inc. Acquires Modified Asphalt Technologies; Global Recycler of Automobile and Truck Tires to Assume Major Role in $160 Million New Road Paving Industry
TUSTIN, Calif.--April 3, 2000--The Quantum Group Inc. (OTC BB:QTMG), a leading global recycler of automobile and truck tires, has merged with Modified Asphalt Technologies (MAT), a Mesa, Ariz.-based crumb rubber modified asphalt paving specialist, by acquiring 100 percent of MAT's stock, it was announced Monday by Ehrenfried Liebich, chief executive officer of The Quantum Group Inc., and Jeffery R. Smith, president of MAT.Smith, a former president of the Rubber Pavements Association, of Tempe, Ariz., has more than 20 years experience in the asphalt rubber industry, which is part of a $36 billion industry in the United States alone.
"The merger of MAT with Quantum creates a long-term economic and environmental solution to expanding commerce throughout the world, while addressing governmental and public concerns about health and safety," Smith observed.
The addition of MAT, according to Liebich, provides Quantum with cutting-edge engineering, technology, quality control and MAT's experience working with government agencies in the implementation of federal- and state-funded rubber-asphalt roadways. MAT was formed in 1993 and has been a consultant to The Quantum Group since its inception.
QMAX, Quantum's asphalt paving subsidiary, is researching and quantifying new technology to produce better and more cost-effective and safer roadways while utilizing scrap tires and improving the environment.
Asphalt rubber paving, a $160 million industry in the United States, is expected to reach almost $1 billion in the next 36 months, with an increasing emphasis on its use around the world.
The largest state budget for rubber asphalt paving, approximately $150 million, is expected to be spent in Texas over the next 48 months, based on 63 million shredded tires and an additional 65 million unshredded tires presently stored in tire piles. During the current California fiscal year Caltrans has budgeted $105 million, based on $42 per ton (for 2-1/2 million tons of hot mix).
This figure represents the removal of 5,428,000 scrap tires from the California waste stream annually. At present, Arizona spends nearly $60 million annually on recycled rubber paving, while Florida budgets $30 million.
The Quantum Group is a pioneer in the environmentally and socially significant waste tire recycling industry with ongoing project development in the United States, South America, Europe, China and the Middle East. Quantum is presently conducting feasibility studies in California, Brazil, the United Kingdom, North Africa and Asia, preparatory to constructing state-of-the-art tire recycling plants.
The Quantum Group has a multi-million dollar order backlog for its proprietary machinery and technology and is currently constructing a state-of-the-art production facility in Penkun, near Berlin, which is scheduled to go on line later this year.
The company is already beneficially impacting the California environment through its joint venture with the California Department of Corrections, under which 20 minimum security inmates at the Richard J. Donovan Correctional Institute in San Diego are converting scrap tires into valuable and marketable products.
The Quantum Group has headquarters at Park Irvine Business Center, 14771 Myford Road, Building B, Tustin, Calif. 92780. Telephone: 800/660-3734 and Fax: 714/508-1475. The company's Web site is http://www.tqginc.com or www.qgusa.com, and e-mail address is info@tqginc.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.