Date: December 20, 2007
Source: EnGlobe Corp.
EnGlobe Corp. Wins Two Long-Term Contracts
EnGlobe Corp. (TSX: EG), Canada's leading integrated environmental services company, today announced it has been awarded two contracts that will provide long-term revenue streams in both its organic waste management and site assessment and remediation businesses.
The Company's organic waste management business, GSI Environment Inc., has been awarded a five-year exclusive contract by Kruger Inc. to be the sole provider of pulp and paper sludge that will be transformed into energy at Kruger's new 23-megawatt biomass cogeneration plant at its Brompton mill near Sherbrooke, Quebec.
The pulp and paper sludge that will supply the plant is produced by both Kruger and other members of the pulp and paper industry. The Kruger cogeneration plant represents a beneficial reuse outlet for approximately 470,000 metric tons of organic waste per year.
"This contract has many benefits for EnGlobe and for all Canadians," said Tony Busseri, President and Chief Executive Officer of EnGlobe Corp. "It provides our Company with a dependable stream of revenues for five years, which has long been one of our strategic objectives. It also enables GSI to position itself as a Canadian leader in the management and beneficial reuse of pulp and paper waste streams. And the environmental benefits are significant, since the Kruger biomass cogeneration plant will eliminate approximately 83,000 tonnes of greenhouse gases annually, which is the equivalent of taking 18,000 vehicles off the road."
In addition, Biogénie S.R.D.C Inc, EnGlobe's site assessment and remediation subsidiary, has been awarded a three-year extension to its management contract for Petro-Canada's contaminated soil treatment facility in East Montreal. The contract is expected to generate approximately $4.5 million to $6 million over the next three years and will continue to be directed by the Biogénie team that has been managing these installations since 1993.
"We are proud of Petro-Canada's continued confidence in our ability and expertise, not only because of the long-term revenues this contract represents, but because this work exemplifies our capabilities for other prospective clients in a growing sector of our industry," Mr. Busseri said. "Together, these two contracts give us a solid foundation for future growth for our shareholders."
About EnGlobe Corp.
EnGlobe Corp., formerly Environmental Management Solutions Inc., is Canada's leading integrated environmental services company specializing in the management of organic-based waste streams and contaminated soils, with an emphasis on beneficial reuse. EnGlobe offers cost-effective solutions to municipal, commercial and industrial clients in Canada, the northern United States, England and France through its subsidiaries: Biogénie S.R.D.C. Inc. for site assessment and remediation, GSI Environment Inc. for organic waste management, and; Tanknology Canada Inc. for tank testing and calibration.
Shares of EnGlobe trade on the Toronto Stock Exchange under the ticker symbol EG. Additional information is available at www.englobecorp.com.
Forward-Looking Statements
This press release contains certain forward-looking statements. Such statements relate to, among other things, sales growth, expansion and growth of the Company's business, future capital expenditures and the Company's business strategy. Forward-looking statements are subject to inherent uncertainties and risks including, but not limited to: general industry and economic conditions, changes in the Company's relationships with its suppliers, pricing pressures and other competitive factors, the availability and costs of fuels and utilities, the results of the Company's ongoing efforts to improve cost effectiveness, changes in regulatory requirements affecting the Company's business and the availability and terms of financing. Other Risk Factors are set out and described in the Company's Annual Information Form which is available at www.sedar.com. Consequently, actual results and events may vary significantly from those included in,contemplated by or implied by such forward-looking statements. In evaluating forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from such forward-looking statements.
Readers are also cautioned that EBITDA should not be confused with cash flow from operating activities. The most comparable GAAP financial measure is operating income, which is described in the Company's third quarter Management Discussion & Analysis Results from Operations section.
For more information, contact:
Investors: Tony Busseri, President and Chief Executive Officer, EnGlobe Corp., (905)
335-2100 x 5022;
Media: John Lute, Lute & Company, (416) 929-5883 x 222Copyright © 2007 CNW Group.
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