Ultra Guard (TM) Awarded +$1,000,000 Peterborough UV Disinfection Contract
Service Systems International Ltd.
OTC/BB: SVSY
FOR IMMEDIATE RELEASE
Ultra Guard (TM) Awarded +$1,000,000 Peterborough UV Disinfection Contract
VANCOUVER, British Columbia--September 23, 1999: Service Systems International Ltd.'s (OTCBB: SVSY) 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.
On Feb 11, 1999 the Ontario Ministry of Environment agreed to the proposed upgrading of the City's wastewater treatment plant, with stipulations. One of the major conditions was the requirement to switch from sodium hypochlorite disinfection of the final effluent to the more technically advanced and environmentally acceptable non-toxic ultra violet (UV) disinfection technology. The City's consultant, CH2MHill Gore & Storrie Limited, was retained to provide design and project management services. During the pre-design phase of this project, the consultant and City staff pre-qualified two suppliers of the UV disinfection technology. They were Trojan Technologies Inc. (TSE: TUV) and UV Systems Technology Inc. Each conducted on-site testing and submitted a tender for the supply and installation of the UV system on August 19, 1999.
After a rigorous assessment of both submissions, based on technical merit and twenty-year life cycle cost analysis, the consultant, CH2MHill Gore & Storrie Limited, recommended that the contract be awarded to UV Systems Technology Inc.
Mr. B.J. Poulton, City Engineer & Director of Utility Services Department, recommended to City Council to award the City's ultra violet disinfection project to UV Systems Technology Inc. He stated, "This decision is based on a lifecycle cost analysis that produces substantial savings when applied to UV Systems Technology. Based on a five (5) month disinfection season, as is presently required, the savings would be $241,000 and calculated on future requirements of year-round disinfection, the savings amounts to $845,000, using a twenty-year life cycle period. When considering the indexed price increase for energy, these savings could increase to over $1,000,000. Other factors considered in the life-cycle analyses were parts replacement and maintenance costs. The UV Systems Technology Inc. was recommended based on the lower life-cycle cost of the immediate and future operation and the operational advantages offered by its multiple module system with respect to future expansion and system redundancy."
The City Council approved the recommendation at Monday's, September 20, 1999, meeting.
Mr. Peter Z. Colak, Vice President - Sales & Marketing, UV Systems Technology Inc said "We are enthused by the growing recognition of the significant energy savings and substantial reduction in the number of lamps required by Ultra Guard(TM) compared to other UV options. On-Site verification by consultants, engineers and administrators is consistently arriving at the same conclusion: whether in Los Angeles, Rosemere or Peterborough, Ultra Guard(TM) allows the client to reap significant energy savings with low maintenance, user friendly Technology. The engineering and economic analyses are compellingly in Ultra Guard(TM)'s favor. This is true whether the comparison is made to the present benchmark for energy efficiency, low-pressure low-intensity system (Los Angeles), or whether the comparison is to the latest development in medium pressure high intensity (Trojan UV4000(TM)-Peterborough, Ontario & Rosemere, Quebec). The life cycle cost analysis of Ultra Guard(TM) showed it to be significantly more economical than competing systems. Furthermore these projects attest to the Technology's superior dose delivery system. The patented reactor chamber surrounding each lamp multiplies the effect of the more intense lamp and delivers higher quality disinfection over a wider range of wastewater characteristics and solids concentrations. Based on our assessment of past test results, varying with wastewater characteristics, we are confident that Ultra Guard(TM) can perform to a given standard with 30 times fewer lamps than low pressure low-intensity and 3 times fewer lamps than high pressure high-intensity options. In the case of Peterborough, this translates to 60 Ultra Guard(TM) lamps compared to approximately 180 medium-pressure high intensity lamps or approximately 1800 low-pressure low-intensity lamps.
We feel that this project marks the beginning for many other opportunities for contract awards to Ultra Guard(TM) in Ontario. Given the favorable economics demonstrated by Ultra Guard(TM) a number of wastewater treatment plants may be expected to reflect Peterborough's decision and opt for UV disinfection as opposed to chemicals or other UV options. A market estimate of the proportion of Ontario's daily treating capacity that would be considered candidates for this UV shift is approximately 600 million gallons per day ".
**Certain of the foregoing information are forward-looking statements regarding future events or the future financial performance of the company, and are subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors are: general business and economic conditions, customer acceptance of and demand for the Company's products, the Company's overall ability to design, test, and introduce new and improved products on a timely basis, regulatory constraints, and the risk factors listed from time to time in documents filed by the Company with the SEC.
Contact: Investor Relations: 1-888-516-7766 or 1-800-542-8091
E-mail: rrc@rrcomm.com
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