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Exousia Advanced Materials > Press Release
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NEWS - Exousia Announces Successful Outcome of Trade Mission to China

Posted by: AGORACOM on December 04, 2007 10:59AM

Receives Substantial Product Commitments and Enters into Strategic Distribution Agreement

 

SUGAR LAND, Texas -- Dec. 4  -- Exousia Advanced Materials, Inc. (OTC Bulletin Board: EXOU) recently completed a highly successful U.S. Department of Commerce sponsored trade mission to China. During the two-week mission, Exousia received significant commitments to purchase its RPA (Rubber-Plastic Alloy) Resin, executed a major distribution agreement to sell industrial coatings in a prime industrial region, and advanced a number of other key business development initiatives.

 

Exousia participated in the trade mission with Shield Industries, Inc., a supplier of industrial coatings, and Shield Technology Development Asia, Inc., an Asian marketing company. Upon returning from the trade mission, Exousia executed letters of intent to acquire all the assets of both Shield Industries and Shield Asia, and negotiated employment agreements with the principals of both companies.

 

The Trade Mission began in Pudong, China and included business development meetings in the cities of Shanghai, Hangzhou, Fuyang, Tianjin, Beijing, Chongqing, Guangzhou, Taishan, Yueyang and Changsha. During the trip, Exousia met with numerous business leaders and high-ranking government officials, resulting in the development of a number of viable business opportunities and strategic relationships. Some of the key business development successes include:

 

1) Exousia executed a letter-of-intent with Northern International Group (NIG) of Tianjin, located on the north-central coast of China. NIG is a state- owned foreign trade company that is ranked among the top 500 enterprises in China. NIG has business interests that span some 80 categories, including key sectors for Exousia, such as metals, shipbuilding, and industrial maintenance. The purpose of the LOI is to identify and develop applications for Exousia Advanced Materials throughout NIG's many business operations, in addition to establishing distribution capabilities in northeast China. Furthermore, NIG has committed to provide Exousia with land on which to build a manufacturing facility.

 

2) Exousia received a four million pound commitment for RPA resin from HSun of Chongqing, in central China. HSun is a manufacturer of motorcycles, ATV's and jet skis for Chinese and international markets. HSun evaluated Exousia's RPA resin for use in molded parts, and upon successful evaluation, requested terms for an initial order of 2,000 metric tons of RPA. HSun's purchase commitment represents potentially $6,000,000 plus in revenue.

 

3) Shield Industries executed a letter-of-intent with Xu Lin Sen Group of Fuyang to establish distribution throughout southeast China for Bio-Shield coatings with VISTAMER® rubber and other corrosion protection systems. Xu Lin Sen Group is a leading manufacturer and distributor of construction products in the Yangtze region. The LOI defines specific terms, order commitments and fees for exclusive, regional distribution rights. Xu Group will also provide coating manufacturing facilities in one of their modern industrial parks.

 

4) Exousia also completed other important business development activities, including: a verbal commitment to establish a regional coatings distributor in the Taishan/Guangzhou area of Southern China; strong interest from Southern China Power Grid to use Bio-Shield coatings; substantive discussions with leading automotive manufacturer Chang'An Motors to use RPA in the interior floors of their mini transporter vans, which could represent up to 4.5 million pounds of RPA annually.

 

"The spectacular success of the trade mission was largely due to the efforts of Mr. David Chen and his Shield Asia marketing team," commented Exousia CEO J. Wayne Rodrigue. "His extensive U.S. and Chinese connections in business and government combined with careful planning and execution were crucial in providing Exousia with unprecedented access to Chinese markets, customers and distribution channels. Access to Asian markets, in addition to our domestic business development activities, will allow us to accelerate our commercialization plan in 2008," stated Mr. Rodrigue.

 

"The rapidly expanding Asian industrial infrastructure has not developed anywhere near the level of corrosion protection systems commonly deployed in western economies," explained Shield Industries president, Elorian Landers. "The result is that countless metallic structures and industrial equipment in major sectors such as petrochemical, energy, marine, construction and transportation are under constant attack by aggressive corrosion. Bio-Shield epoxy coatings with VISTAMER® rubber provide a very high level of corrosion protection for these severe environments and applications." Upon returning from China, Mr. Landers was named VP of Corporate Development for Exousia.

 

"The key to accessing the Asian markets is establishing high-level relationships in both the business and government sectors," said newly appointed VP of Asia Sales and Marketing, David Chen. "I'm excited to join Exousia full-time so I can aggressively develop these markets for our advanced industrial materials." "By bringing the entire Shield Asia team into Exousia we will be able to open Asian markets and establish distribution far faster than the Company could do on its own," noted Mr. Chen.

 

About Exousia Advanced Materials, Inc.

 

Exousia supplies advanced resins, engineered particles, and industrial products. Exousia products enhance strength, durability, cost effectiveness and performance for a wide range of manufacturing, commercial and construction applications. The Company markets into both domestic and international markets.

 

FOR FURTHER INFORMATION & DISCUSSION

 

Investors are invited to visit the Exousia Advanced Materials IR Hub at AGORACOM: http://www.agoracom.com/ir/Exousia where they can post questions and receive answers or review questions & answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to mailto: EXOU@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

 

FORWARD LOOKING STATEMENTS

 

Statements released by Exousia Advanced Materials, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor"' provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

 

    Contact:

    Brokers:

    Surety Financial Group, LLC

    (410) 833-0078

    Investors:

    http://www.agoracom.com/ir/Exousia

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