WASHINGTON, D.C., March 16, 2005 (PRIMEZONE) -- Nuclear Solutions, Inc. (OTCBB:NSOL) today announced its first sale of limited distribution rights to its patent-pending technology for the detection of shielded nuclear weapons. These rights were sold to I. P. Technology Holdings, Inc. (IPTH) for an aggregate purchase price of $9.7 Million. The license fee is payable in equal quarterly installments of $242,500 over the next ten years. Additionally, Nuclear Solutions will receive an 8% royalty on gross product sales. A $100,000 signing fee, creditable towards the first payment, was received and the balance of the first payment is due on or before June 30, 2005.
Under the terms of the license, the company sold the exclusive right to distribute products incorporating Nuclear Solutions' gravimetric fissile material detection technology specifically to municipal (non-federal) police and fire departments in the United States for twenty years. It is estimated that there are approximately 55,000 police and fire districts in the United States.
"This licensing agreement is a milestone for our company and helps validate our business model," said Patrick Herda, CEO, Nuclear Solutions. "Considering the fact that our gravimetric technology is in the early stages of development, with the prototype construction pending, the license fee was discounted significantly. The licensing fees that we expect to receive from this agreement will enable us to accelerate the development of this technology and bring it to market faster."
Additional details will be filed in an 8-K informational filing with the SEC.
About The Technology:
The levels of radiation emitted by weapons-grade plutonium and uranium are relatively low, and easy to shield. Due to this reason, detecting a "loose nuke" in transit through a border entry point with conventional radiation detectors is practically impossible under several very likely transit scenarios.
Development of Nuclear Solutions' new sensing concept may result in a highly sensitive, portable, and low-cost detection system that responds to minute gravitational gradient anomalies produced by high-density nuclear materials like plutonium and uranium -- and is unaffected by radiation shielding techniques.
When fully developed, this patent-pending approach, using gravimetric sensing techniques could become a useful tool in the fight against nuclear terrorism worldwide.
About Nuclear Solutions, Inc.:
Nuclear Solutions, based in Washington, D.C., is an emerging innovative technology development company that is committed to developing, and commercializing viable product technologies enabling partner companies to offer new and improved products in the following areas:
Nuclear Weapon Detection for Homeland Security & Defense
The development of advanced technology to detect shielded nuclear materials and terrorist nuclear weapons
Nanotechnology/MEMS applications
The development of long-lived nuclear micro-power sources, based on three U.S. Patents (5,087,533; 6,118,204; 6,238,812), to power applications in the emerging field of Nanotechnology, Micro-Electro-Mechanical Systems, and the new generation of low power microelectronics.
Environmental Technology
Development of a patent pending process to remediate tritiated water via an advanced separation technique.
More information about Nuclear Solutions, Inc. may be found on its website, www.nuclearsolutions.com.
About I. P. Technology Holding, Inc. (IPTH):
IPTH is a newly formed company created to capitalize on purchasing rights to potentially breakthrough technologies in early stages of development.
Cautionary note:
While the ultimate revenue of the license agreement is $9.7 Million over a ten-year period, management has elected to recognize only the license revenue for the current quarterly portion of the license agreement. We have made this election because IPTH is a start-up enterprise and this raises the level of risk and uncertainty regarding the ultimate collectibility of the $9.7 million Dollars over a ten-year period. At this time, we believe this conservative approach is prudent. Management will reevaluate this financial treatment on a quarterly basis.
Disclaimer: The matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties such as our plans, objective, expectations and intentions. You can identify these statements by our use of words such as "may," "when," "expect," "believe," "anticipate," "intend," "could," "estimate," "goal," "continue," "plans," "planning," "would," "when," "feasible," or other similar words or phrases. Some of these statements include discussions regarding our future business strategy and our ability to generate revenue, income, and cash flow. Additional funding may be required to develop the technology described herein. The actual future results for the Company could differ significantly from those statements. Factors that could adversely affect actual results and performance include, among others, the Company's limited operating history, dependence on key management, financing requirements, technical difficulties commercializing any projects, government regulation, technological change, and competition. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Additionally, patent pending status does not guarantee that a patent will issue or that the technologies herein, including gravimetric sensor technology will be commercially successful. Accordingly, reference should be made to the Company's periodic filings with the U.S. Securities and Exchange Commission.