It's very good news. Following is a news release issued this morning:|
KELSO TECHNOLOGIES INC. (Vancouver Stock Exchange Symbol KLS)
WHOLLY-OWNED SUBSIDIARY OF KELSO TO MANUFACTURE SAFETY RELIEF VALVES
Production Begins On Breakthrough Technology For Upcoming Rail Service Trials
May 11, 1998, Vancouver, BC-President and CEO of Kelso Technologies Inc., Stephen L. Grossman, announced that the Company has initiated the production process on the first run of 30 JS75 SRV valves for the Association of American Railroad's (AAR) service trials. Kelso now has the capability to form a wholly-
owned subsidiary to manufacture in-house, its product line for the global marketplace which is estimated to reach $1 billion by the year 2000 (Source: Compuserve, America On-line, Internet and Dialogue, October 1995).
James W. Williams, the inventor of the JS75 SRV safety relief valve, has signed a five-year agreement to become the President of Kelso's wholly-owned USA subsidiary, if established within the next 60 days. In the meantime, he has
agreed to immediately become Kelso's Vice President of Valve Development.
Williams, a leading expert in the field of valve and spring manufacturing for several decades, brings extensive knowledge to Kelso and is uniquely qualified to bring the Company to the forefront of technological advancements toward safer relief valve technology for the many industries worldwide.
Williams is the owner of Willamoy Inc., which has signed an agreement to produce the first 30 JS75 SRV valves for the AAR service trials. Installation of the 30 JS75 SRVs is scheduled for Fall 1998. Once the one year service trial is completed, Kelso will begin manufacturing the JS75 SRV valves. Prior to that, Kelso will be developing other valves for the rail and is planning further development of its product line for at least two additional industries.
"We are very pleased to have Willamoy Inc. begin manufacturing our valves for the AAR service trials," said Grossman. "And the addition of manufacturing in-house capabilities is another major step forward toward the growth
of Kelso Technologies Inc."
"With our own manufacturing facility, Kelso will be able to control costs for both our JS75 SRV and future product lines," Grossman continued. "Also, without joint venture partners, the Company and its shareholders can realize a greater return on their investment from any revenues and profits generated from future sales of Kelso products."
Two events allowed Kelso this tremendous opportunity:
1. The recent AAR approval of the JS75 SRV for participation in their one and two year North American service trials. The AAR requires 30 valves to be installed on tank cars travelling under real railroad conditions.
2. The recent decision by Court Holdings Limited (parent company of Vineland Manufacturing Limited and Kelso's joint venture partner in the now-defunct HERV project) to forego participation in the JS75 SRV has now freed Kelso to unconditionally own 100 percent of the JS75 SRV and to establish a wholly-owned subsidiary to manufacture the valve.
"This is a very exciting year for Kelso and its shareholders," Mr. Grossman said. "First the AAR approval for service
trials of the JS75 SRV on actual tank cars under real road conditions and now the ability to manufacture our own products. Without the commitment and dedication of Jim Williams and everyone involved with Kelso, none of this
would have been possible."
With an estimated revenue of $1 billion in the global marketplace for safety relief devices by the year 2000, Kelso is definitely looking forward to becoming a major worldwide supplier of safety relief valves in the coming years.
Kelso Technologies is committed to developing its JS SRV technology to market a complete range of safety relief valves for a variety of areas including the rail, petro-chemical, pipeline, boiler-pressure, marine and trucking industries.
For further information, call Century Communications Corporation at 1-888-922-7822 or visit the Kelso Website at www.kelsotech.com.
The Vancouver Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
"Growth Through Product Development and Acquisitions."
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