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American Green Group, Inc. Announces First Growth Opportunity Tuesday May 20, 4:42 pm ET
NEW HAVEN, CT--(MARKET WIRE)--May 20, 2008 -- American Green Group, Inc. (Other OTC:AMGG.PK - News) announced today the signing of a letter of intent to acquire the operations of Paradigm Polymers, Inc., a leader in innovation of go green technology in the structural insulation environment and various other applications since May 2000.
Paradigm Polymers, Inc. developed and markets the first soy based foam insulation product used by the industry. The company is developing products in partnership with other manufacturers and distributors for items such as bio-foam insulated thermal shipping containers and the first soy based foam insulation board.
The acquisition is expected to be completed during the second quarter of 2008 and will expand AMGG into the green building space and provide additional opportunities for growth from within and expansion into previously untapped markets. It will also allow growth from becoming a distributor of various other foam insulation materials. The acquisition will bring a minimum of $2.5 million in revenue during its first year with the expectation of substantially higher gross revenue of between $4 and $5 million. The products, distributed at wholesale, carry a gross profit margin averaging 30%.
This opportunity is in the right business at the right time in the green product space with oil prices exploding and making conventional petroleum based foam expensive and putting bio-foam products in a competitive price environment for the first time in the products' history.
About American Green Group, Inc.
American Green Group, Inc. is a holding company seeking to aggregate and operate "green" companies in various energy conservation-related market sectors in the United States and elsewhere, with the strategic intent of leveraging the acquired companies' in-common market strengths in order to build overall sales and profits.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, the impact of competition, the success of existing and new product releases, the management of our growth, other risk factors inherent in the outdoor recreation, internet, and media industries and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.
Contact: Contact: American Green Group, Inc. Investor Relations 561-820-9551
-------------------------------------------------------------------------------- Source: American Green Group, Inc.
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