A REVOLUTIONARY NEW PRODUCT AND PROCESS TO RECYCLE POLYSTYRENE FOAM IN A TOTALLY-SAFE AND ENVIRONMENTALLY-FRIENDLY MANNER
INTERNATIONAL FOAM SOLUTIONS, INC. ("IFOS" - OTC BB) HAS DEVELOPED AND HOLDS EXCLUSIVE PATENTS FOR THE ONLY COST-EFFECTIVE FOAM RECYCLING PROCESS IN THE WORLD
INTERNATIONAL FOAM SOLUTIONS, INC.
P. O. Box 273267 Boca Raton, Florida 33427
Phone: (561) 272 - 6900 Fax: (561) 272 - 4951
Toll-Free: (800) 856 - 3626
website: solutions-net.com
IFOS' patented process makes recycling of polystyrene foam products an
inexpensive, efficient and practical reality. Major U.S. companies such as ARCO have realized costs savings of up to 80% using IFOS' patented Styro Serve System. IFOS sees potential market for its products and services of over $700 million within five years!!
CORPORATE BACKGROUND
International Foam Solutions, Inc. ("IFOS" on the OTC BB) was created in 1993 to develop and sell a practical, economical and environmentally-safe means of disposing of and recycling polystyrene foam products.
IFOS is the only company in the world offering a safe, efficient,
economical and practical means of recycling these waste materials - the Styro Solve System.
A small IFOS Solution Machine, suitable for school cafeterias, can process 15 lbs of plates, 11 lbs of flatware and 6 lbs of cups and dessert plates (representing about 400 meals) in less than 5 minutes. A larger IFOS unit can densify 2,000 meals worth of polystyrene in about the same time.
The potential market for IFOS' exclusive process is enormous.
Each year, approximately $18 billion worth of polystyrene foam products are sold in the United States. On a micro level, American Airlines uses nearly 100 million plastic / foam beverage glasses each year; Southwest Airlines, over 40 million glasses. Because polystyrene disposables are cheaper by half than any other alternatives, including paper, airlines could realize significant savings by switching entirely to polystyrene and recycling the
material.
Styro Solve is 100% natural and biodegradable byproduct of the citrus
industry that is widely used in other applications. No dangerous chemicals are used, and no hazardous wastes are produced in the IFOS processes.
IFOS hopes to establish a network of polystyrene recyclers throughout the United States.
The Styro Serve concept is catching on. Polaroid Corporation found that by using foam serving utensils plus IFOS recycling technology, that they were able to reduce their cafeteria waste stream by 80% since adopting the Styro Solve System in 1995.
A significant advantage of the process is that contaminants such as small amounts of food waste do not need to be removed as they are encapsulated in the resultant Polygel and strained out during recycling
Currently, IFOS is trading on the OTC BB at just $0.25 per share.
We believe that IFOS could be an extremely profitable investment for those with patience. The firm's exclusive technology has been proven - now all that needs to be done is to begin booking contracts and sales with large national accounts. With a projected 20x increase in revenues over the next several years, IFOS shares should perform handsomely!
CORPORATE STOCK MARKET INDICATORS
Shares Issued: 9.3 million Authorized: 20,000,000
52-week high: $1.00 52-week low: $0.125
Current bid/ask: $0.03 - $0.375 Last Trade: $0.25
WHAT IS POLYSTYRENE FOAM ??
Polystyrene is a lightweight plastic material derived from petroleum and natural gas products and produced in two varieties: an expanded
polystyrene version (also known as foam) - and used to manufacture cups, bowls, trays, plates, egg cartons and other food-service related products. The non-foam variety of polystyrene is commonly used for plastic utensils and cutlery, yogurt and cottage cheese container, etc.
Since both the expended and non-expanded versions of polystyrene are
composed of the same chemical materials, they may be treated collectively during recycling.
The total polystyrene market represents about $18 to $20 billion in annual sales.
THE POLYSTYRENE RECYCLING INDUSTRY
The polystyrene recycling industry is made up of companies that specialize in producing equipment to collect, reduce and eventually recycle polystyrene products.
Currently, this specific industry niche remains fragmented and problematic, under-developed and under-marketed. No company has emerged as the leader of the polystyrene recycling industry. In many cases, companies and institutions are unaware of the option or possibility of foam recycling.
Conservative estimates predict that the polystyrene recycling market will be a $760 million business by the year 2002.
THE OLD WAY OF RECYCLING POLYSTYRENE FOAM
The food polystyrene market in the United States exceeds 165 million tons annually.
In order to recycle polystyrene, it must be transported to a recycling
facility. Because of its low density, freight charges have generally made recycling economically prohibitive.
To successfully recycle polystyrene foam, it is necessary to reduce the volume of the foam, ideally at the point of disposal. The Styro Solve System developed by IFOS achieves economical volume reduction.
Other methods on the market are not really practical. Re-packing /
re-shipping foam products is costly, labor-intensive and time consuming.
Bailing (used on commercial levels) only reduces foam volume by about 50%, uses a lot of energy and the required equipment is expensive. Crushing / compacting or melting the polystyrene foam does reduce the volumes of foam material by about 90%, but the resulting product cannot be recycled due to contamination
How big a problem is this?
Well, a customer serving 1,400 meals / day will spend approximately $2,400 / month in trash hauling charges for its paper / foam wastes. Just on the costs of disposing of this bulky material, this same customer could realize a savings of about $1,400 per month by switching to polystyrene and using IFOS' Styro Serve Process.
The IFOS Solution machine dramatically reduces the volume of expanded
polystyrene foam. Instead of crushing or melting the foam, IFOS'
equipment shreds and dissolves the expended polystyrene, releasing the air trapped in the foam, leaving a dense space-saving material called "Polygel". The polystyrene in Polygel is chemically unchanged; after treatment, the recovered polystyrene can be recycled again and again.
HOW THE STYRO SOLVE SYSTEM WORKS
The Styro Solve System consists of the following key components:
(1) Customers purchase a large metal bin (approximately ½ the size of a standard beverage vending machine) and place the unit in a cafeteria or other food service related area. In the case of industrial applications, such as packaging plants, significantly larger machines may be purchased.
(2) Polystyrene items are fed into the Solution machine. As the foam
materials are deposited into the enclosed machine they are shredded and sprayed with a harmless solution (Styro Solve) that "melts" the foam into a gel-like liquid ("Polygel") that is stored in trash bags the base of the machine.
(3) The bags of Polygel are periodically removed and placed in large
storage barrels to wait shipping. Once full, the barrels are picked up by IFOS (this service is completely free to IFOS customers and is a valuable attribute of the IFOS recycling system), and taken to the nearest recycling facility.
(4) The Polygel is then processed, with impurities in the Styro Solve
removed, the original solution is extracted, re-processed and re-sold to customers, and the condensed polystyrene byproducts (beads, chips or flakes) are sold to plastics manufacturers. The recycled polystyrene can be used to make many useful products such as plastic lumber, video cassettes, children's toys, insulation, park benches, etc.
IFOS customers are responsible for purchasing, renting or leasing the
machine ($5,000 to $20,000) and buying the Styro Solve solution (about
$20/gallon). The system eliminates the traditional pick-up and waste
management costs associated with disposing of polystyrene products.
IFOS generates revenues through four primary sources: sales / leases of machines, sales of solutions added to machines (a very high profit margin item), sales of recycled polystyrene, and, licensing royalties from foreign distributors (in Japan and the United Kingdom).
WHAT ARE STYRO SOLVE AND POLYGEL ??
Styro Solve is a patented liquid product made with a natural citrus
products and other biodegradable ingredients which softens and dissolves polystyrene foam; air trapped in the foam is released, leaving a dense, volume-reduced material called Polygel.
Styro Solve also kills bacteria and viruses while generating no hazardous fumes. At a ratio of about 1 lb Styro Solve to 6 to 8 lbs polystyrene, the Polygel mixture takes on the consistence of gelatin and has a mild citrus odor.
SIGNIFICANT CURRENT & FUTURE CUSTOMERS
Among IFOS' major customers are: ARCO, Marriott / Time Warner, Estee
Lauder, Avis Car Rental and the U.S. Navy.
The list of potential customers and target markets for the IFOS Styro Solve System is long and diverse, although, at this point in time, customers may be broken down into two major categories: food service & related customers and industrial / packaging customers.
IFOS' goal is to recycle 3% to 5% of the domestic polystyrene market; the company foresees a total market in excess of $700 million within its target markets over the next 5 years.
Niche markets being targeted are: school cafeterias, fast food restaurants and chains, military bases, hospitals, amusement parks, state and county fairs, airlines and airports, and food service companies.
Among the major accounts now pending are: Dade County (Florida) School System, the U.S. Air Force, and many, many others.
Lots of major companies and organizations that have shown an interest in the IFOS Styro Solve System. Major national accounts that could be secured over the next two years include: Polaroid, General Motors, SYSCO Foods, ARA Food Service, Marriott Food Service, Burger King, McDonalds, U.S. Postal Service, Xerox and numerous airlines, airports, county and state fairs. Overall, these potential clients could represent over $32 million in annual sales !!
MARKETING STRATEGY
IFOS' marketing strategy is two-fold: first, to educate companies and
consumers on the importance of recycling foam products, and secondly, to position IFOS' Styro Solve System as the only safe, practical and
cost-efficient means of disposing of and recycling polystyrene foam
products.
The primary objective is to establish name recognition of IFOS and broaden the firm's customer base.
IFOS will initially concentrate on building business in the northeastern region and along the East Coast of the United States. Development of the Texas and California markets will be pursued on an opportunistic basis.
The company's objective is to be recycling approximately 3% to 5% of the U.S. supply of polystyrene foam products by the year 2002 (approximately $900 million in annual revenues).
WHO ARE IFOS' COMPETITORS?
At present, IFOS' Styro Solve System is the world's only
environmentally-safe and economically-practical means of recycling polystyrene products and materials.
Competition in the field of polystyrene foam recycling is limited to just three companies, all of which offer products with distinct disadvantages when compared to the IFOS Styro Serve System. All competitors are either far more expensive, environmentally-unsafe, generally impractical or all of the above when compared to the IFOS system.
The company faces competition from two major fronts: competing companies (technologies) and substitute products. The substitute products aspect of the competitive environment again emphasizes the close connection between the original manufacturers of polystyrene products and the recyclers of those same products.
IFOS intends to maintain its superior market position through intellectual property protection, trademarks and trade secrets. Additionally the company will continue to develop new products and technology, aggressively market their products around the world in conjunction with education about recycling and provide exceptional customer service.
IFOS' EXCLUSIVE PATENTS
The Styro Solve process was discovered by Claudia Iovino, who at the time was working for HKI, Inc., a chemical manufacturer. A U.S. Patent for the process of reducing polystyrene through the use of an activated agent was applied for and granted to Miss Iovino and HKI.
The patent was transferred to IFOS in March 1996.
ADVANTAGE #1 OF THE STYRO SOLVE SYSTEM - SIGNIFICANT VOLUME REDUCTION
The IFOS Styro Solve System can significantly reduce the volumes of trash and waste currently being deposited in our country's landfills.
One of the key aspects of IFOS' Styro Serve process is keeping polystyrene foam products out of landfills. For every 35,000 pounds of polystyrene that IFOS recycles, the equivalent volume of one million pounds of trash is kept out of our nation's landfills.
To illustrate, 12 trash bags of polystyrene foam can be reduced to one bag of Polygel. Or, two, 30 cubic yard dumpsters of foam can be reduced to one gaylord of Polygel (a gaylord being a pallet-mounted storage unit measuring 42" by 42" by 42").
Alternatively, a full semi-trailer of new / re-used polystyrene foam
weights approximately 4,500 lbs. Post-recycling, a full semi-trailer of Polygel weight 42,000 lbs (of which 25% is Styro Solve), leaving a net weight of 31,000 lbs polystyrene. Or, what would take 7 semi-trailers of un-recycled polystyrene can be carried in one semi-trailer of Polygel.
Think of that one semi-trailer of Polygel as holding the equivalent foam as would otherwise be held in sixty-seven 30-cubic yard dumpsters
ADVANTAGE #2 - MAJOR COST SAVINGS OF POLYSTYRENE FOAM vs. PAPER
Most people don't realize that paper products cost significantly more than their polystyrene equivalents (as well as being inferior in performance). Now, with the introduction of the Styro Serve process, there is a cost-effective, environmentally-friendly alternative to paper products.
In a scenario based on a typical cafeteria serving 350 meals per day, the estimated costs of polystyrene cups, bowls, plates, flatware, etc. is nine cents per meal. Adding the Styro Serve Solution, leasing one of IFOS' machines, maintenance, labor and electricity costs brings the total cost to about 24 cents. In contrast, the costs for paper plates and metal flatware are over 30 cents per meal, and plastic / china plates, over 43 cents per meal.
On average, IFOS customers have realized cost savings of over 30%
(including reduced waste haulage charges) by switching to polystyrene
serving utensils and recycling the materials.
OPPORTUNITY FOR INVESTORS
From a technical standpoint, we believe that has IFOS has turned the
corner, breaking out of its downtrend line with bottom-fishers once again taking positions. We see solid support for the stock at about $0.20 / share.
At current prices ($0.25 / share), there is little downside risk, given proprietary technology and huge potential market.
In closing, we believe that International Foam Solutions has all of the ingredients for success: expert management with an exclusive and
revolutionary product.With increased consumer and business awareness of the tremendous cost savings and environmental benefits of the Styro Serve process, we expect that current IFDS shareholders will be rewarded with large capital gains, and that IFOS will become a prime merger or takeover target as its domestic and international markets further expand.
For more information, please contact:
Harvey Katz (Chairman)
Toll-Free: (800) 856 - 3626
DISCLAIMER
This is not an offer to sell any securities of International Foam
Solutions, Inc. ("IFOS"). The securities may only be offered by registered broker-dealers which may have agreed to market IFOS securities. Wall Street Concepts Group, Inc. is not such a registered broker-dealer.The information contained herein has been provided by IFOS to Wall Street Concepts Group, Inc. and should not be construed as investment advise. In addition, the information contained in this report is not intended to be a complete discussion of information regarding some of the current and/or intended business activities. Wall Street Concepts Group, Inc. has not conducted any due diligence into the company or into any of the representations contained in this report. Wall Street Concepts Group, Inc. has received 200,000 shares of IFOS common stock as consideration for the preparation and advertisement of this report.
For additional information on Wall Street Concepts Group Inc., please
contact WSCG at:
100 E. Linton Boulevard Phone: (561) 272-0073
Delray Beach, Florida 33484 Fax: (561) 272-3070
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