NEWS!!!!!!!!!!!!!!!!!!!!!!
Thursday January 14, 6:00 am Eastern Time
Company Press Release
SOURCE: SGI International
SGI International and Mitsubishi Corporation Form Joint Venture to Promote LFC Technology
LA JOLLA, Calif., Jan. 14 /PRNewswire/ -- SGI International, (OTC Bulletin Board: SGII - news). SGI announced today that it has executed agreements to form LFC Technologies LLC, a limited liability company (the ''Company''), with MLFC Corporation, a subsidiary of Mitsubishi Corporation (OTC Bulletin Board: MSBHY - news). The Company's primary objective will be developing Liquids from Coal (''LFC'') projects and marketing LFC products worldwide. Mitsubishi Corporation and SGI will share the cost of operating the new Company. The LFC technology is a patented process, which upgrades low-rank coal, producing a higher-Btu, ''super-compliance'' fuel and coal liquids that can be refined into valuable chemicals.
SGI will provide personnel to the Company for engineering, technology and product marketing in the United States as well as LFC project development. In addition, SGI will develop strategic relationships and continue its government liaison activities.
Mitsubishi Corporation will provide engineering and technology to reduce the cost of LFC plant equipment to further enhance the value of Coal Derived Liquids and market the LFC technology and products outside the United States.
SGI will continue to own the LFC patents and intellectual property until the occurrence of certain milestones. At that time, SGI will transfer its LFC patents to a new operating company, which will be formed by SGI and Mitsubishi Corporation, and Mitsubishi Corporation will then make a predetermined payment to SGI through its subsidiary MLFC.
Mitsubishi Corporation's spokesman stated: ''Mitsubishi Corporation has maintained a long relationship with SGI and we have now reached an important milestone for the future LFC business. We feel that this technology can become more commercially viable, and we are going to utilize our expertise in the field of engineering and marketing for such purpose.''
Joseph A. Savoca, Chairman/CEO of SGI stated: ''In my opinion, Mitsubishi Corporation's alliance with SGI demonstrates their belief in the value of the LFC technology. I believe this new Company will be the cornerstone of worldwide business opportunities. Mitsubishi Corporation, with their technical expertise and over 170 international offices, is uniquely positioned to successfully promote and market the LFC technology. Both SGI and Mitsubishi Corporation intend to aggressively seek additional partners and alliances from the utility, coal mining, transportation and chemical industries to expand the resources devoted to developing LFC projects and marketing LFC products. The Company also expects to apply for new patents for LFC process improvements.''
SGI International's core business is developing, commercializing and licensing new energy technologies. Its corporate headquarters is in La Jolla, California.
(This news release contains forward-looking statements. Actual results could vary from those expected due to a variety of risk factors, including, but not limited to, the uncertainty of successful completion of contemplated or proposed business transactions.)
SOURCE: SGI International
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