Message #17 From:
NewsBot Date: November 1, 2006 08:07:00 AM
SHMT News Shumate Industries Announces First Significant Order for Hemiwedge(R) Valve
CONROE, Texas--(BUSINESS WIRE)--Shumate Industries, Inc. (OTCBB:SHMT), a technology-oriented
energy field services company, today announced the receipt of a
significant purchase order for its surface-level Hemiwedge®
valve targeting mid-stream and energy flow control applications.
This purchase order totals over $500,000 which includes the purchase of
two inch through six inch size ANSI class Hemiwedge®
valves, and Shumate anticipates deliveries throughout the next ninety
days. After more than a year of preparation, engineering and design,
testing, and global supply chain build up, the launch of Hemiwedge®
surface-level valve this quarter continues to be a major focus of the
Company.
Shumate Industries’ Chairman and CEO, Larry
Shumate, commented, “This order from a valve
distributor in North America, validates the demand for our products
during the launch and market acceptance of the Hemiwedge®
valve. Receiving this significant purchase order, and indications from
other future customers, further evidences the interest levels we have
seen while marketing to valve sales representative companies, valve
distributors and our target end customers. In our view, the economic
savings derived from reduced supply disruption and in-line maintenance,
utilizing our proprietary Hemiwedge® Cartridge
feature, has been well received by our target customers within flow
control applications such as terminal and gathering stations. The
initial sales launch of the Hemiwedge® valve
is the result of tremendous hard work and dedication by our entire team,
for which our firm is grateful to its employees.”
Matthew Flemming, Shumate Industries’ CFO,
stated, “In addition to the launch of our
surface level Hemiwedge® valve, we anticipate
other revenue producing agreements to follow as our business development
and marketing efforts gain momentum created by Hemiwedge®’s
market exposure. We anticipate additional revenues from licensing
Hemiwedge® technology for use in sub sea high
pressure applications and additional milestone payments from the
progress of the development of the Hemiwedge®’s
down hole isolation valve.”
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 which
makes energy exploration and production products for its customers, and
2.) Hemiwedge Valve Corporation, a manufacturer and marketer of the
proprietary new Hemiwedge® valve technology.
The Hemiwedge® surface-level valve targets
energy flow control applications, while the Hemiwedge®
sub sea high pressure valve is in discussions for licensing. The
Hemiwedge® down hole isolation valve is under
a development agreement announced in July 2006. 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. Shumate Industries disclaims any
intention or obligation to revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
