SVSY December Newsletter
Service Systems International Ltd. (SVSY) Newsletter
Volume 1, Issue 3
December 1999
Service Systems Wishes You Happy Holidays and a Prosperous New Year
Services Systems International, Ltd. (OTCBB: SVSY) is a high technology company engaged in the development and commercialization of energy efficient water treatment systems. Through its subsidiary, UV Systems Technologies, Inc., they engineer, manufacture, and market the Ultra Guard(tm) ultraviolet (UV) disinfection system.
Ultra Guard(tm)'s Technology represents a significant advancement in UV disinfection resulting in substantially reduced O & M (operations and maintenance) costs when compared to competing alternatives. The Technology is applicable in treatment of municipal water & wastewater or industrial effluent. The System uses low-pressure, high-intensity, high efficiency ultraviolet lamps, related high-tech controls, and patented components/design elements in custom configurations to suit the specific needs of a given client.
News Review
Service Systems Expands Operations - Signs a Licensing and Distribution Agreement with a Leading Australian UV Equipment Manufacturer
Service Systems announced on November 9, 1999 the signing of a licensing and distribution agreement with a leading Australian UV equipment manufacturer. Australian Ultra-Violet Products Mnfg. Pty. Ltd. (AVP) has been manufacturing UV water and air disinfection units since 1987 and is the market leader in the Southern Hemisphere, their clients include a number of municipalities and Fortune 500 companies. Their equipment line incorporates low-pressure and medium-pressure UV lamps. The medium pressure units have automatic programmable wiper systems that minimize equipment maintenance. One of the distinguishing features of the licensed AVP Technology is that it incorporates lamp chambers with photo-catalytic liners. These liners inhibit lamp fouling and enhance the catalytic effects of UV energy when applied to the removal and destruction of organics and inorganic contaminants. This advanced feature allows economical treatment of large volume streams such as decontamination of a water table or industrial effluent.
The agreement positions both AVP and SVSY in a manner that significantly strengthens each others ability to reach distant markets at minimal cost while giving maximum value to the client through superior technology coupling.
Ultra Guard Excels at WEFTEC '99
SVSY's subsidiary, UV Systems Technology Inc. exhibited at the WEFTEC '99 conference in New Orleans. Given the growing project list, papers & reports related to Ultra Guard(tm)'s advantages at this and other conferences, the three-day event was marked with a flurry of visitors to Ultra Guard(tm)'s WEFTEC '99 booth. Staff fielded over 150 inquiries from interested parties. These varied from utilities looking for efficient disinfection technologies to companies that expressed an interest in representing Ultra Guard(tm). The company is presently responding to numerous proposal requests, negotiating with a number of candidate rep organizations and following-up with others that have the qualities required to maximize market share.
Ultra Guard(tm) Wins World's Largest Submersible CSO Pumping Station Contract
SVSY announced Oct 6/99, that it has been awarded the contract to supply the UV treatment systems for the City of Toronto's $50 million Western Beaches combined sewer overflow system. The contract worth $750,000 was awarded to SVSY's subsidiary, UV Systems Technology Inc. based on the benefits of Ultra Guard(tm) for this application over competitors such as Trojan Technologies Inc, Calgon and Infilco-Degremont.
Ultra Guard(tm) was chosen due to a number of factors relevant to this application:
-High Performance in very challenging wastewater. Ultra Guard(tm)'s patented reactor chamber is instrumental in delivering UV energy to the solids associated contaminants more effectively and allows it to outperform other systems in similar applications.
-Ultra Guard(tm) can deliver the required dose for disinfection within five minutes of turning on the switch compared to approximately forty minutes for other systems.
-Given that the UV equipment would be placed in an excavated room in the pumping station shaft the equipment had to:
Be flood proof/submersible.
Be reliable/require little maintenance.
Be intrinsically safe, in case of gas build up from possible septic conditions within the shaft.
Have a Small footprint to minimize excavation costs.
Ultra Guard(tm) typically requires one-third the number of lamps of medium-pressure high-intensity systems and one-thirtieth the number of standard low-pressure lamps.
Ultra Guard(tm) ? Two Additional UV Projects in Ontario
SVSY reported Sept 29/99, being awarded two contracts for UV treatment systems in Ontario. These contracts were with The Mohawk Council of Akwasasne (St. Regis) and The Community of Deep River. In both cases Ultra Guard(tm) was chosen over Trojan Technologies' products.
Ultra Guard(tm) Awarded +$1,000,000 Peterborough UV Disinfection Contract
SVSY, on Sept 23/99, announced that its subsidiary, UV Systems Technology Inc, has been awarded a +$1,000,000 contract by the City of Peterborough, Ontario. The city has selected the Ultra Guard(tm) high efficiency UV disinfection system over Trojan Technologies Inc's UV4000(tm) product to treat 30 million gallons per day of municipal wastewater.
Peter Colak, Vice President Sales and Marketing for UV Systems Technology Inc. commented, "A market estimate of the proportion of Ontario's daily treating capacity that would be considered candidates for this shift toward UV is approximately 600 million gallons per day."
Ultra Guard Receives Glowing Review at California Conference
In December 1998, Service Systems International Ltd shipped an Ultra Guard(tm) UV System to the Los Angeles County Sanitation District to undergo testing of the system's ability to disinfect wastewater to California Title 22 Guidelines. Title 22 certification is an operational guideline that is recognized as the most stringent in the USA and is a prerequisite to most sales in California. Obtaining Title 22 accreditation of the Ultra Guard(tm) UV System will facilitate entry to the lucrative California wastewater treatment market. The size of the California water and wastewater market can be exemplified by an article in the July/August 1999 issue of WaterWorld. A survey of the California cities of Fresno, Los Angeles, Oakland, Sacramento (city & regional county), San Diego and San Francisco showed projected expenditures on water facilities in fiscal 1999 of approx $880 million with projected 5-year expenditures of over $4.2 billion. The same six cities also indicated planned fiscal 1999 expenditures on wastewater facilities of $805 million with projected 5-year expenditures of over $2.3 billion.
Industry News
Dec 9/99: Americans view the Clean Water Act and Clean Air Act as critical pieces of legislation. According to the study's findings, the Clean Water Act ranked first in importance at 64%.
Nov 16/99: Public health concern has been raised after researchers discovered hepatitis A in water samples taken from two Santa Barbara, CA, area beaches, a creek and the city's sewage treatment plant.
Nov 15/99: One of China's heavy industry bases, Liaoning Province, will build 19 wastewater plants over the year 2000. These systems are to be capable of treating two-thirds of the wastewater produced by the whole province. China's Ninth Five-Year Plan (1996-2000), has called for 56 billion yuan in spending on environmental protection and water pollution control projects.
Oct. 25/99: The $9.7 billion business of General Electric, GE Power Systems (GEPS), has acquired 82% of Glegg Industries, Inc., a privately-owned water treatment firm.
WWW: Water/Wastewater Websites And Online Investor Resources
Investors and shareholder have continued conducting research and due diligence into the water/wastewater industry. As such, we would like to provide a few further websites as a launch point for them.
Raging Bull Discussion Forum - ragingbull.com
Service Systems Website - servicesystems.com
U.S. Environmental Protection Agency - epa.gov
U.S. Securities & Exchange Commission - sec.gov
Ultra Guard Website - ultraguard.com
Water Environment Federation - wef.org
Water Online - wateronline.com
Yahoo.com Quote Service - quote.yahoo.com
Questions and Answers
Q: Why did SVSY sign a licensing and distribution agreement with Australian Ultra-Violet Products Mnfg. Pty. Ltd (AVP)?
A: SVSY recognizes the market need and sales potential in areas not presently serviced. These include small to intermediate scale UV projects for municipal and industrial clients as well as clients requiring treatment solutions beyond disinfection whether small or large volume.
The alliance with AVP is synergistic in that it will give SVSY an immediate entry into growing potable water and industrial treatment markets in North America & Europe. It enhances SVSY's ability to service the Southern Hemisphere and capture market share in wastewater treatment throughout Australia, New Zealand and near Asia.
Q: Where is SVSY currently testing their Ultra Guard(tm) systems?
A: Ultra Guard(tm) is currently undergoing PDU (Product Demonstration Unit) testing at a California site which processes 200 million gallons per day of wastewater. Discharge requirements are less than 23 fecal coliforms per 100 mL as the effluent is going into wetland/rivers. Results to date have been excellent.
Additionally, SVSY agents in the Carolinas have recently concluded Ultra Guard(tm) PDU testing for effluent being discharged from textile industries. The high dye content results in low transmissivity (20-30%) which has caused problems with other UV disinfection systems rendering them not economically feasible. Ultra Guard(tm) has successfully disinfected the effluent to levels well below discharge standards.
A number of other PDU trials/projects are slated over the year 2000 throughout the U.S.
Toronto's CSO Pumping Station
Toronto's fifty million dollar Western Beaches project is intended to resolve a problem that challenges many metropolitan centers in the world. Given that Toronto has one of the oldest sewer systems in North America it did not have sewer lines that separated sewage and storm water flows until recently. Separated sewer lines would allow rainwater to be channeled away from the wastewater treatment plant (WWTP). Consequently, like other cities with combined sewer lines, storm events overloaded the wastewater treatment plant resulting in the discharge of untreated combined sewer overflows (CSO). The untreated overflows caused closures of Toronto's 'discharge outfall area' beaches during May to September. Toronto presently disinfects more than 400 million gallons of wastewater per day.
Toronto's Western Beaches CSO Project At A Glance:
úThis CSO storage tunnel was approved in 1992 and is on target to reduce closures of West End beaches by 75% by the year 2001.
úThe massive project involves an infrastructure system to intercept some 2.9 million cubic metres of sewage a year from 10 storm and combined sewer outlets running from High Park to Exhibition Place.
úSeven interception shafts are being constructed to direct water from existing sewer systems into a storage tunnel 4.0 kilometres long, and drilled three metres in diameter in shale rock about 50 metres below ground.
Three combination storage/interception shafts, some 30 metres in diameter, are being constructed at Battery Park, Cowan Avenue and Glendale Avenue.
Service Systems International Ltd.
This Newsletter will be published quarterly to bring our shareholders up to date.
We invite you to email your questions to us, and we welcome your suggestions for articles that may be of interest to our shareholders.
You may contact the Company at:
Service Systems International Ltd. (SVSY)
PH5-1060 Alberni Street
Vancouver, BC, CANADA V6E 4K2
Telephone: (604) 257-4256
Toll free: 1-888-516-7766 or 1-800-542-8091
Fax: (604) 608-2949
Online at:
servicesystems.com or ultraguard.com
E-mail: rrc@rrcomm.com |
