Dr. Bogdan Castle Maglich, Chairman and CEO of HiEnergy Technologies Talks to The Wall Street Transcript
IRVINE, Calif., April 6, 2005 /PRNewswire-FirstCall via COMTEX/ -- HiEnergy Technologies, Inc. (OTC Bulletin Board: HIET) (the "Company" or "HiEnergy") is pleased to announce that The Wall Street Transcript, a publication which profiles Wall Street professionals and corporate leaders, has recently issued an in-depth interview with Dr. Bogdan Castle Maglich, Chairman and CEO of HiEnergy Technologies, Inc., in which he candidly discusses HiEnergy and Stoitech(TM), the Company's ground-breaking technology, and presents his personal insights on the homeland security industry and the difference between true innovation and simple hype.
A copy of the 2,500 word interview has been posted on the Company's website and can be accessed by the public at hienergyinc.com.
As to HiEnergy's Stoitech(TM) technology, Dr. Maglich states, "We have invented, developed and are patenting the world's first and only stoichiometric explosive detection system, which can effectively decipher chemical formulas of unknown substances through metal or other barriers, almost instantly. So, in this sense, we are unique ... Our technology compares to other detection technologies like color photography is to black-and-white photography."
Dr. Maglich also discusses HiEnergy's products, "One is the CarBomb Finder(TM), which is van-borne, and it is this one that has been approved to be installed on the Army SmarTruck ... The second SIEGMA(TM) ... is similar to the CarBomb Finder(TM) but is suitcase-borne ... It is mobile and can address objects that are inaccessible by vehicle-borne systems."
With regards to the Company's direction, he asserts, "Our objective is, clearly, to commercialize and bring to market a more sophisticated detection technology than any other, because of Stoitech(TM), while at the same time make it more affordable ... For the rest of 2005, besides the anticipated product launch, we intend to build upon our investments in the base unit and core technologies underlying our products and prototypes, and introduce additional applications and configurations."
Before the interview draws to a close, Dr. Maglich affirms, "The key issue with HiEnergy is that we are not just saying that we can detect explosives. Our system has demonstrated a 95% probability of detection, while many systems have a 30% or 40% probability of detection ... It's not a matter of just having an explosive detector, it's a matter of having a quantitative explosive confirmatory device that will have the least probability of making what can be a very costly, perhaps disastrous, goof, and one which can in fact eliminate false alarms."
ABOUT HIENERGY TECHNOLOGIES, INC.
HiEnergy Technologies, Inc. ("HiEnergy", together with its subsidiaries, the "Company") is a nuclear technologies-based company focused on the commercialization of its initial proprietary, neutron-based, "stoichiometric" sensor devices, including (i) the CarBomb Finder(TM) 3C4, a vehicle-borne system, for the detection and identification of car bombs, and (ii) the SIEGMA(TM) 3E3, a portable suitcase-borne system for the detection and identification of home-made bombs, also known as Improvised Explosive Devices or IEDs. The Company is marketing its devices to governmental and private entities and is negotiating licenses for distribution of its devices with various industry partners. To date, the Company has devoted the bulk of its efforts and resources to the research, design, testing and development of proprietary "stoichiometric" sensor devices and underlying technologies, and has yet to generate meaningful revenues from the sale of any products using its technologies.
The Company also continues to focus on the research and development of additional applications of its technologies and their further exploitation, both internally and through collaboration with third parties. HiEnergy is currently developing prototypes in programs with the U.S. Department of Defense and the Department of Homeland Security for other related uses of its core technology. Recently, it entered into a funded cooperative development agreement with the U.S. Transportation Security Administration (TSA) to produce a proof of concept which incorporates the Company's SuperSenzor(TM) technology into a baggage screening system. The Company's "stoichiometric" technology, or "Stoitech(TM)" has been incorporated into additional prototype applications which, if the Company is able to raise the funds necessary to commercialize them, will be the next products it attempts to launch: (i) an in-ground explosive screening system, the CarBomb Finder(TM) 3C5, (ii) an anti-tank landmine detector; (iii) an unexploded ordnance detector, which is also useful to detect IEDs; and (iv) a device the Company calls a "Refractorymeter", which can detect fissures or erosions in the ceramic lining of oil cracking tanks.
FORWARD-LOOKING STATEMENTS
Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward- looking statement.
These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievement expressed or implied by such forward looking statements. In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "intend," "expects," "plan," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements. In addition to the risks described above, additional risks affecting our Company can be found in our periodic reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934.
There can be no assurance that the need to obtain export licenses, end-user permits, and/or to comply with any future regulations which may be adopted by U.S. or foreign regulatory bodies will not limit, or be a bar to, our ability to deliver against orders or potential customers purchasing our products. Future changes in the existing federal regulations governing the administration of export controls by the U.S. Department of Commerce may require us to obtain federal licensing, or become subject to more stringent rules of the U.S. Department of State. There can be no guarantee that we will be able to obtain such licenses at that time, or if we can that costs of doing so will not be prohibitive or significantly our poll of available customers. Other risks associated with international sales include, but are not limited to, changes in domestic and foreign regulatory requirements, political instability in targeted foreign markets, differences in technology standards, possible foreign currency controls, longer payment cycles and inadequate collection systems, fluctuations in currency exchange rates, inconsistent intellectual property protections among foreign jurisdictions, export restrictions, tariffs, embargoes or other sales barriers, prejudicial employment laws and business practices, difficulties in obtaining and managing distributors, and potentially negative tax consequences.
As a defense products company, we are sometimes requested or required to demonstrate our technologies and our products at varying stages in our development. Such demonstrations may be in front of potential purchasers of the products, and/or sources of grant or private equity funding. To the extent that any product or technology may not work in the manner in which it is intended, such prospective purchasers and/or funding sources may lose confidence in our products and technology, and may determine not to purchase any products or fund any developments. If a demonstration should not work successfully at any time when large numbers of people are present, the news could spread within the homeland defense industry we are working in, especially among the relatively small universe of large potential governmental agencies and other organizations who are likely purchasers of our products. If that were to happen, it could have a materially adverse effect upon our ability to make sales of our products, as well as on our overall business operations and financial condition.
To the best of our knowledge, as of the date of this Report, no customer, industry partner or governmental entity has used a CarBomb Finder(TM) or SIEGMA(TM) device to detect explosives, other than in demonstrations. We have not had independent field testing of a CarBomb Finder(TM) or SIEGMA(TM) device to rate or certify its functionality in explosive detection, nor have we commissioned an independent market or research study to determine its market potential. Consequently, the commercial viability of the CarBomb Finder(TM) and SIEGMA(TM) is unproven at this time. We also are unable at this time to qualify the amount and frequency of maintenance to be required by CarBomb Finder(TM) and SIEGMA(TM), as we have no reference data regarding real world use of the devices and we have limited experience in causing, or simulating, extensive usage. A significant increase in the amount of maintenance required to keep the devices operating may result in unforeseen problems or customer dissatisfaction. If this were to occur, prospective customers could very well perceive that there are reliability problems with our products, which could reduce the demand for our products. If commercial opportunities are not realized from the use of the CarBomb Finder(TM) and SIEGMA(TM) devices and we have difficulty attracting and maintaining customers, our ability to generate revenues will be adversely affected. We also have not had the ability to undertake extensive testing in real-world situations, and cannot with certainty explain how the device would be impacted by severe weather, burning or excessive heat, a wartime environment, various topographies or other circumstances which maybe of particular importance to certain prospective customers or in certain regions. Without internal data in respect of these kinds of testing, customers may be reluctant to spend the funds necessary to purchase our CarBomb Finder(TM) and SIEGMA(TM), or any of future prototype developments, and the sales cycle may be longer than we have anticipated or may not materialize at all, either of which events would have a materially adverse effect on our business, operations and financial condition.
MEDIA CONTACT:
Lois Whitman
HWH Public Relations
(212) 355-5049
loisw@hwhpr.com
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