Integrated Environmental Technologies, Ltd. ("IET" or the
"Company") (OTC Bulletin Board:IEVM), announced today that it
posted a letter from David R. LaVance, the Company's President and
Chief Executive Officer, on the Company's website, www.ietltd.net,
which provides a review of the Company's 2013 corporate activities
and an overview of the Company's business strategy for 2014. The
contents of that letter are provided below:
Dear Fellow Stockholder:
In 2013, IET made solid progress towards its goal of becoming an
independent and self-supporting company. We adopted a strategy
focused on three market opportunities. One of those
opportunities gained significant momentum in 2013. The other
two opportunities experienced slower growth, mostly because of a
lack of market awareness due to the limited resources available
during the year.
Oil and Gas
We have identified the oil and gas market as a market of great
potential. During 2013, we focused on pursuing sales
relationships in that market. As a result, we have started
delivering Excelyte™ on a regular basis to customers in Utah.
As one can imagine, the introduction of "new anything" that has
a short history and has not been regularly used requires extensive
testing and trials. The oil and gas operators and owners are a
conservative group who make big bets on their financial future each
day. They do not want to inadvertently impact their drilling
opportunities by introducing harmful chemicals into the
wells.
Accordingly, we have gone through extensive testing regimens at
prospective customers' sites. Those testing results have been
positive, and have shown the efficacy of the product. As we
have previously disclosed, Excelyte™ is non-toxic and effective as
a biocide and hydrogen sulfide scavenger in the hydraulic
fracturing and other water-intensive activities in oil and gas
production, and there is no evidence that Excelyte™ harms wells or
drilling equipment or other fracking chemicals.
We have had ongoing discussions with several oil and gas
producers who are now interested in becoming customers. We
also enhance our production capability of Excelyte™ through a
significant purchase of EcaFlo™ equipment to manufacture
Excelyte™. The Company is now able to establish manufacturing
depots to supply Excelyte™ in the Utah and other oil basins in
which we are targeting. We expect the oil and gas market to
become our lead market for Excelyte™. Because the volume of
product required by oil producers is significant, we believe this
market opportunity has more potential than our other market
opportunities. Our expectation is that IET will have secured
contracts for delivery of Excelyte™ in a second basin in 2014 and
we will continue to expand our sales efforts to additional basins
as our business grows.
In each basin we serve, IET will establish a fluids production
facility to be staffed with a lead salesman (GM), supported by a
sales engineer who will troubleshoot issues with customers and
production technicians. Delivery of Excelyte™ will be done via
normal water hauling services. IET's production facilities
will be established in typical flex space and will likely start
with 4-6 EcaFlo™ units. Because of the stand-alone nature of
the production machines, up to 30 units can be set up in
approximately 2,500 square feet of space. These manufacturing
depots only require power and clean water, but no special sewerage
or by-product disposal services. A facility containing six of
our four cell Ecaflo™ units can produce approximately 7,200 gallons
of product daily. We believe that as business volume increases
in each basin, the potential market for such basins could easily
exceed ten times that amount on a daily basis over the near
term.
Pricing for product depends on usage volumes. Although we
are frequently asked questions about pricing, at this time we are
not publishing rate data, as it is a highly competitive
environment. However, one would expect a standard price per
gallon to emerge during the coming year as usage becomes
standardized. The Company is developing additional products,
with varying concentrations of chlorine and lower amounts of salt,
that it intends to introduce as product differentiators. This
should also allow a tiered pricing model.
Heathcare
We previously reported that a second significant market lies in
the disinfection of hospitals, nursing homes and
clinics. During 2013, we expanded our EPA label to include
more pathogens, especially C. difficile spores, the most common
carbapenem-resistant Enterobacteriaceae (CRE) and
Tuberculosis. That label expansion qualifies our product as
usable to healthcare facilities, because it now meets OSHA
standards that protect healthcare workers. We have also worked
with the Carson-Tahoe Regional Medical Center, in Carson City,
Nevada, to complete a field test demonstrating the efficacy of the
product in actual hospital conditions. The results of that
trial indicate Excelyte™ is effective in reducing and eliminating
labeled pathogens in hospital rooms. A paper is expected to be
published in spring 2014 by Carson-Tahoe Regional Medical Center
indicating the findings in the study.
For hospital applications, trial data is paramount in making
sales. We have undertaken additional testing to show efficacy
with additional species of bacteria, and we have worked extensively
on new and effective application methods. One of those systems
is now being reviewed by the EPA for use in healthcare settings.
If approved, this system will allow users to apply the
product by means other than spraying and wiping, producing a more
efficient delivery system to "kill" the harmful germs responsible
for the plague of hospital-borne deaths and
diseases. IET is now seeking additional hospital
testing sites to gather more usage data to support the data
collected at Carson-Tahoe Regional Medical Center. We also are
in discussions with two potential partners for distribution into
hospitals.
Food Production
In the food production market, we continue our selling efforts
into the dairy marketplace in Utah and Idaho and have located a
prospective distributor for California to help establish the
Excelyte™ brand, operate our production depots and distribute
product into dairies in that state. This relationship brings
the potential of expansion into other dairy regions beyond the few
markets we currently serve. IET believes the dairy market, if
fully developed, can be a valuable market and can be better
penetrated by established dairy distributors with pre-existing
relationships in the dairy businesses. Our approach will be to
contract with distributors already selling into the dairy market
and then to other food production markets.
Focus for 2014
IET is focusing on several important objectives for the coming
year:
1. Increasing our presence in the oil and gas by establishing a
production facility in at least one additional basin and expanding
sales in our first territory, Utah. We intend to recruit a
general manager to oversee the efforts in oil and gas, and are keen
on establishing this business as a self-supporting division
professionally managed and poised to expand throughout the other
western states.
2. Finalizing the trials to support sales in healthcare and
initiating sales via distributors in the healthcare market.
3. Expanding the food production offering by engaging
distributors now supplying the dairies in the large dairy states,
beginning in California and the other western states.
We believe these are reasonable mileposts for a developing
company that is competing in these markets. 2013 was a year of
development and we expect 2014 to be one of growth. As that
growth accelerates, the Company will have more resources to deploy,
including the resources necessary to improve communications with
investors, publish marketing materials and inform the marketplace
of the tremendous advantages that the Excelyte™ product
delivers.
As 2014 begins, we want to express our appreciation to our
stakeholders, including stockholders, customers and
employees. We look forward to a productive year in 2014.
Sincerely,
/s/ David R.
LaVance
Chairman, President & Chief Executive Officer
About Integrated Environmental Technologies, Ltd.
Integrated Environmental Technologies, Ltd., is a
publicly-traded company that operates through its wholly-owned
operating subsidiary, I.E.T., Inc. The Company sells anolyte
disinfecting solution under the EcaFlo™ and Excelyte™ brand
names. The solution is produced by the Company's proprietary
EcaFlo™ equipment which utilizes an electrolytic process known as
electrochemical activation to reliably produce environmentally
responsible solutions for cleaning, sanitizing and
disinfecting. EcaFlo™ Anolyte and Excelyte™ solutions are
EPA-registered hard surface disinfectants and sanitizers approved
for hospital-level use and are also approved for use as a biocide
in oil and gas drilling. The products can be used safely
anywhere there is a need to control pathogens, bacteria, viruses,
and germs. The Company's EcaFlo™ equipment also produces a
cleaning solution that the Company sells under the Catholyte Zero™
brand name. Catholyte Zero™ solutions are an environmentally
friendly cleanser and degreaser for janitorial, sanitation and food
processing uses. The Company is currently focused on selling
its anolyte solutions to agriculture and dairy farmers, oil and gas
production companies and healthcare facilities. To learn more
about Integrated Environmental Technologies, Ltd. and I.E.T., Inc.,
please visit our websites at www.ietltd.net (investor
relations) and www.ietecaflo.com (product information).
Forward-Looking Statements
Statements about the Company's future expectations and all other
statements in this press release other than historical facts are
forward-looking statements. Such statements are subject to certain
risks, trends and uncertainties that could cause actual results to
differ materially from expected results. Among these risks,
trends and uncertainties are economic conditions both generally and
within the industries in which the company may participate;
competition within the Company's chosen industries, including
competition from much larger competitors; technological advances;
available capital; regulatory approval; and failure by the Company
to successfully develop or acquire products and form new business
relationships. Since these statements involve risks and
uncertainties and are subject to change at any time, the Company's
actual results could differ materially from expected results.
CONTACT: Integrated Environmental Technologies, Ltd.
Thomas S. Gifford
Executive Vice President and Chief Financial Officer
Tel.: (732) 820-1415