SELLERSVILLE, Pa., March 3, 2005 (PRIMEZONE) -- Delta Mutual, Inc. (OTCBB:DLTM), specializing in energy recovery and construction services through environmentally-friendly technologies and products, today announced that it has signed a multi-year agreement that will establish a permanent oil sludge processing facility in Indonesia through its Delta-Envirotech subsidiary's local joint venture, Tryhuda-Envirotech.
This agreement is with Pertamina, the State-owned oil company in Indonesia, and the regional government in the Indramayu region of Western Java. This is one of the first multi-year cooperation agreements in Indonesia that address environmental concerns. The regional Governor has agreed to provide the land for the facility and will require the use of this facility for the entire region which currently includes six refineries. The oil recovered from the sludge processing will be sold, and the clean wastewater will be returned back to the environment.
Peter Russo, President and CEO, commented, "We see this as a landmark agreement. Oil sludge, an ongoing byproduct of refineries and present in oil storage tanks, will now be processed and will become the property of Tryhuda-Envirotech. The six refineries in this region create an estimated 8,000 to 10,000 metric tons of oil sludge per month. The new facility will process and separate oil sludge into low-grade oil and wastewater. The annualized revenues for processing the oil sludge, not including the tank cleaning or sale of the low-grade oil, are projected to be $6.7 million. Management expects that Delta Mutual's portion will be approximately $1.5 million annually."
The Company expects that this facility and the methods of processing sludge and environmental restoration will become the standard for other areas and regions. Initial operations are planned to begin within ninety days.
About Delta Mutual
Delta Mutual, Inc. specializes in energy recovery and construction services through environmentally-friendly technologies and products currently operating through joint ventures in the Middle East, Far East and Puerto Rico. Delta employs technologies that efficiently recover energy sources from soil, water and other waste streams while simultaneously improving existing environmental conditions. The Company also employs an energy efficient building material system for construction projects that are initially taking place in Puerto Rico. www.deltamutual.com
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Forward Looking Statement
This Press Release contains forward-looking statements that involve risks and uncertainties, which may include statements about business strategy and development plans, plans for entering into new business, anticipated sources of funds, including the proceeds from future operations and plans, objectives, expectations and intentions contained in this Press Release that are not historical facts including "The ongoing annualized revenues are projected to be $6.7 million. Management expects that Delta Mutual's portion will be approximately $1.5 million annually." Risk factors associated with these forward-looking statements include: Capital to finance the facility, government approvals, the market for crude oil, processing efficiency, doing business in Indonesia and other risk factors as outlined in the Company's SEC filings. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those discussed in this Press Release. These risks are outlined in our SEC filings.
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