NEWS
Capital Assurance Corporation Announces Redirection and Name Change
DANBURY, Conn.--(BUSINESS WIRE)--May 19, 1999--Edwin F. Phelps, Chairman and CEO of Capital Assurance Corporation (OTCBB:CACP) announced today that it is seeking shareholder approval to change its name to Phelps Engineered Plastics Inc. (PEP) to more accurately reflect the company's current operations and business plans.
Upon approval of the name change, the company also will request a change of its ticker symbol. Shareholders will be notified when these changes become effective.
Recently, the management of PEP has assumed management of CACP and has restructured the company by effecting a reverse split on an 800-to-1 basis and infusing the first amount of new capital needed to develop a high-growth engineering-materials company.
PEP's business plan is to capitalize on its proprietary technology and proven products, as well as new products, in large market segments serving architectural, transporation and industrial customers. Ed Phelps, the founder of PEP, brings strong management experience and proven successes in commercializing proprietary technology. He held senior GE management positions, responsible for engineered plastics, energy systems and nuclear reactor businesses. After GE, Phelps was president of Crane Company, a 1.5 billion New York Stock Exchange-listed engineered products company.
After retiring from both GE and Crane, Phelps started PEP and acquired the assets of a small plastics honeycomb and composites business. This business had seventeen patents with the trademark of NorCore(R), and has sold over $40 million of its products since it started. These products include NorCore(R), a unique thermoplastic honeycomb, PepCore(TM), an advanced version of NorCore(R), PepPanel(TM), a bonded composite sandwich panel made with the honeycombs, PepStone(TM), a composite stone panel made with the honeycombs, and PepCrete(TM), a composite concrete panel made with the honeycombs. All these panel products are used in walls, doors, floors, ceilings, furniture and material handling panels because of their light weight and high performance. These assets are now owned by PEP, a wholly-owned subsidiary of CACP.
Commenting on the business plan for CACP, Phelps stated, "There are significant, worldwide market opportunities for our line of products. We are developing significant strategic partners, along with expanded revenue capacity. The demand for our product is there. It is our mission to penetrate this multi-billion dollar marketplace."
Statements contained in this press release regarding future financial and operating performance and results, marketing plans and initiatives, operational initiatives, technology, and other statements that are not historical facts are forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Past performance is not necessarily indicative of future results, and actual results could differ significantly from any results anticipated in any forward-looking statement. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, risks associated with: factors affecting internal growth and management of growth, the availability of adequate financing, the company's ability to implement its strategic technology, marketing and operational initiatives, dependence on technology, the building products and engineered products markets, seasonality, quarterly fluctuations and general economic conditions, and other factors.
CONTACT:
Phelps Corp., Danbury
Ed Phelps, President, 203/792-5110
KEYWORD: CONNECTICUT
BW1270 MAY 19,1999
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