The Hemiwedge® Cartridge Valve is a new product line based on a proprietary technology that targets process and industrial applications such as isolation block valves, emergency shut-down, CO2 and water injection, pipeline by-pass and drain, diverter valves, and especially critical shutoff of service fluids with entrained sand and abrasive particulates. Orders received to date have been for a variety of applications and include sour gas applications in gas gathering, mud diverter valves, pig launcher service, and brine storage well shutoff.
Two particularly significant purchase orders have been received from a major North American pipeline company for 2” and 6” 600 Class valves for use in natural gas gathering applications. These applications include manual shutoff and automated emergency shutdown of sour gas in gas gathering lines. This is anticipated to be a monthly recurring order.
The Company believes the unique Hemiwedge® Cartridge Valve compares favorably against legacy engineered ball, gate, and plug valves that are currently used in gas gathering applications. Hemiwedge®’s patented hemispherical wedge design offers improved shutoff performance with the wedging action during the final seating. The proprietary cartridge technology encases all the internals of the valve within the cartridge and allows in-line replacements, significantly reducing down-time and supply disruption, especially in higher maintenance service applications containing entrained solids such as line scale, sand, and debris.
Stan Allen, Senior Vice President of Technology for HVC, stated, “These new customer orders show increased awareness of the new valve technology. The anticipated recurring revenue of this relationship gives our firm increased visibility for future sales in this area and these applications with other dominant production and mid-stream pipeline companies.”
About Shumate Industries, Inc.
Shumate Industries, Inc. is a Texas-based energy field services company that incorporates new technologies to bring products to market leveraging its existing infrastructure, expertise and customer channels. The Company operates through two wholly owned subsidiaries, 1.) Shumate Machine Works, a contract machining and manufacturing division, and 2.) Hemiwedge Valve Corporation, a proprietary new valve technology that targets mid-stream process and flow control markets with its Hemiwedge® Cartridge valve product line, sub-sea via a pending licensing deal for Hemiwedge® sub-sea high pressure valve product line, and Hemiwedge® down-hole valves under development for managed pressure drilling applications. For additional information on the Company and its products please visit www.shumateinc.com.
Forward-Looking Statements
This document contains discussion of items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, customer concentration risk, difficulties in refinancing its debt, difficulties in consolidating the operations of the Company's operating subsidiaries, difficulties in accelerating internal sales growth, volatility of the energy business and its effects on the Company's business, difficulties in new technology acceptance within the energy industry, restrictive covenants in our existing credit facilities, fluctuations in metals prices, general economic conditions in markets in which we do business, extensive environmental and workplace regulation by federal and state agencies and other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission. All information provided in this release and in the attachments is as of August 28, 2007 and the Company undertakes no duty to update this information.
Shumate Industries, Inc., Conroe
Matthew Flemming, 936-539-9533
or
Investor Relations
North Coast Advisors, Inc.:
Craig T. Stewart, 585-218-7371
cstewart@ncainc.com
or
Don Michlin, 936-271-2423
dmichlin@ncainc.com