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Microcap & Penny Stocks : EVDS Environmental Digital Services, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rharris who wrote (171)	10/6/1998 11:01:00 PM
From: Jeffrey L. Henken	Respond to of 718

Environmental Digital Services Inc was formed through a 15c211 filing. This company has actually been around for many years and has been recently reorganized because their flagship product is nearing it's marketing release. That flagship product is the CAPSCAN device, which is an in tank inventory monitoring device accurate beyond EPA requirements. Perhaps measuring the level of gasoline in an underground storage tank(UST) is not be all that sexy but making money selling them is definitely exciting. Lets talk about the problem that EVDS is addressing with their CAPSCAN device. The EPA requires that all USTs be monitored with much greater accuracy than the outdated stick measurement was ever capable of delivering. The EPA requires reports be maintained on each tank showing that they are being monitored on a daily basis. The EPA will be even more vigilant in 1999 and beyond because tank upgrades have been mandated by the end of 1998. 40% of all ground water contamination is due to gasoline leakage from these tanks. EPA fines are extremely high and the cost of clean up is even higher for those companies that do not accurately access their potential problems in time. The CAPSCAN device fills a void in this industry by supplying an inexpensive product that can literally save a gas station owner from a major financial crisis. There really is no competition for this device but I will discuss the two other companies in the business. The two other companies that have attempted to capture market share with their own technology are Veeder Root System and Arizona Instrument but their success has been limited due to the high expense of installing their technology. Veeder Root System's technology has to be installed as the tank is placed in the ground or added after an expensive retrofit. This can cost as much as $28,000 per tank. Arizona Instrument has actually given up on the monitoring business but still installs snifters for leaks. The cost of a retrofit for their system in around $25,000. As you can tell these are not inexpensive alternatives to the CAPSCAN system and as such Arizona Instrument appears to be abandoning the business. The CAPSCAN device simply screws into the fill pipe on any UST. The good news for EVDS shareholders is not only is this device patented but the use of any device to monitor a tank through the fill pipe is also protected by this patent. So how does this technology work? The CAPSCAN device is an electronic system set up to measure the tank through the use of sonar waves. It accurately monitors the tank and will deliver information to a hand held computer detailing the water content, gasoline levels and inventory management for the service station owner. The device is set up to monitor only the individual tank for which it is activated. The information recorded on the hand held computer can be sent to EVDS through a reverse 1-800 number who will supply the service station operator with a written report detailing the tanks activity which is then mailed weekly to the EPA. So how much does this cost? The average service station has 4 UST's and each one of them will need there own CAPSCAN device. The cost for a service station owner for these devices and the full monitoring system is as follows: $500 for the first tank and $400 for each tank there after. If the service station operator decides he wants to use EVDS's inventory reporting services then an additional $450 per year is added to the cost. The grand total for the service station would be $2150, 1/10th the cost of doing one single tank retrofit for a single tank by Veeder Root System. If a service station owner decides to move to a new location his CAPSCAN devices can be relocated and reactivated for the new tanks. This is the only inexpensive, movable device for monitoring tanks that actually exceeds EPA requirements. Essentially there is no competition for the CAPSCAN device. This device is so accurate that the EPA and insurance companies are getting behind it to give service station owners cost breaks on their Environmental Impact Liability insurance. Because of the high number of past incidences and the tremendous environmental impact on ground water and the ecosystem when leaks occur insurance companies are giving up to a 15% discount for the use of the CAPSCAN device. Starting next year EVDS will have a product available for monitoring home healing oil tanks. The New England area alone has 4,000,000 installed home heating oil tanks. Customers have become accustomed to suffering short deliveries because they have had no method of accurately measuring their tanks before and after delivery. That will change next year when this device is marketed and sold at stores like Sears, K-Mart and WALMART. The cost of the device will be $100 or less. A single short delivery could cover the cost of this device. EVDS also has a traditional construction and remediation arm that has already booked a $4.5 million contract: biz.yahoo.com Please read this press release carefully and notice the tie to a major oil company. I am hoping we will see more individuals like Mr. James Bartel, formerly Texaco General Manager, International Marine, as well as Texaco's senior representative to Aramco added to the board soon. Along with the trade shows that EVDS is doing they also have an exhibit at the Airport's Council International North America show in Orlando, FL through this Thursday. There are 140 exhibitors currently there. Thanks to my friend and fellow investor who e mailed me this information on the exhibit. Regards, Jeff