VANCOVUER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 28, 2006 -- Consolidated Ecoprogress Technology Inc. (TSX VENTURE:CES.V - News) - ADVERTISEMENT
Mr. John Banks reports:
Consolidated Ecoprogress Technology Inc. continued to advance shareholder interests on a number of key fronts over the past quarter. Management has put into place arrangements to ensure continued growth in shareholder value in the period ahead. Much of the groundwork has been put in place over the past 24 months.
The Company is initiating sales and marketing programs for Flushaway(TM) brand feminine hygiene products. The tangible results are anticipated to be visible in Q4 2006 and beyond as a targeted media campaign to include television is now in the planning stage. Management sees national advertising as an essential component to retail success by stimulating consumer trial and shelf off-take.
Flushaway(TM) production is now 100 per cent located in mainland China and sources through a consortium of suppliers. This approach is aimed at ensuring security of supply that meets our quality standards while fostering a competitive environment among our suppliers. The Company plans to open a branch office in China, and currently has personnel on the ground to oversee production.
As a result of this, our order to delivery cycle is now eight weeks, and we are aiming for a further reduction to six weeks.
Our US distributor, Dr. Fresh, reports that a number of Wal-Mart locations have sold out of product, and we have recently completed a shipment to fill shelves. The product was sent by air to ensure prompt delivery.
Film production is now underway for the Envirostar order. Envirostar is a leading South African distributor. We expect to ship product to Envirostar by May 15. Thereafter, the Company anticipates shipping regular orders to distributors every seven to ten days in 40-foot containers. Each container represents on average $50,000US in revenue to Ecoprogress.
We expect to ship product to fill the order received from US distributor La Familia by June 30.
In order to accommodate our revised production cycle, K-Mart has rescheduled the launch of Flushaway(TM) to June.
We expect to ship samples available to Canadian retailers by mid-July. Management is confident the Company's supply chain logistics are able to meet the stringent requirements of the Canadian retailing system. We currently have warehousing in Dallas, Texas and are looking for additional facilities in eastern Canada to serve as a hub for Canadian distribution.
Underlining our confidence in our new manufacturing arrangements, we have transferred the 36-container order formerly placed with Yugi to the new manufacturing group. We believe, beyond increased reliability and improved quality control, we will also capture a price advantage. Moreover, current arrangements can now provide for up to 50 containers per month.
As a result of these events, we anticipate stronger sales in the 2nd half of 2006.
In Q4, 2005, we received notification of potential patent issues, related to our packaging, from Proctor & Gamble. Management has addressed the salient issues and anticipates no material change as a result.
In continual efforts to ensure aggressive pursuit of future market opportunities, we are carrying on with our due diligence in regards to a potential business transaction with Taylored Technologies Inc. of North Carolina. We are also pressing forward with our research and marketing partnership with Quartek Inc., also of North Carolina. Quartek is a leading nano-materials developer.
Our US distributor Dr. Fresh continues to play an important role in developing sales. Dr. Fresh has earned 3.0 million restricted shares to date, and can earn an additional 2.0 million based on Flushaway(TM) being placed on additional Tier 1 retail outlets and upon meeting specified sales targets. In order to protect competitive positions, the details of this arrangement must remain confidential.
The Company is now looking for distribution in other countries.
In view of anticipated growth, your Company has now taken additional office space to accommodate new staff.
Due to the pace of change, we will be issuing regular updates every 30 to 60 days.
To reflect the changing nature of the Company, management has proposed a name change to Ecoprogress Technologies Inc. We expect this new name to be adopted in short order.
Management wishes to thank shareholders for their continued participation in Ecoprogress and we look forward to 2006 / 2007 as watershed years in the evolution of what we firmly believe will be a vital, growing firm for the long term.
Ecoprogress is diligently working on becoming a lead player in environmentally friendly, absorbent and plastic replacement products. Its first branded product, Flushaway(TM), provides women with the choice of a flushable feminine hygiene product that, after disposal, biodegrades in 28 days.
ON BEHALF OF THE BOARD OF DIRECTORS
John Banks, CEO and President
-------------------- The only thing that goes up at my age are stocks! Posts: 59 | From: Toronto | Registered: Apr 2006
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