TechPrecision Enters Into Exclusive Manufacturing Contract With Sionix Corporation

WESTMINSTER, Mass., Feb. 23 /PRNewswire-FirstCall/ -- TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision", or "the Company"), a leading manufacturer of large-scale, high-precision machined metal fabrications with customers in the alternative energy, medical, nuclear, defense, aerospace and other commercial industries, today announced the execution of a three-year exclusive U.S. agreement to manufacture DAF-based (dissolved air flotation) water treatment systems for Sionix Corporation (OTC Bulletin Board: SINX). During more than 50 years of operation, TechPrecision and its subsidiary have participated in a number of high-visibility, successful manufacturing and product development efforts spanning many of the same markets Sionix penetrates. In addition, TechPrecision's expansive facilities provide the agile workspace required for production of Sionix products.

Louis A. Winoski, CEO of TechPrecision, commented, "TechPrecision is honored and excited to be chosen by Sionix to provide their DAF-based water treatment systems. We recognize the unmet need for this technology in the marketplace, and are eager to enter this new vertical and help Sionix accelerate its business. Part of our business model involves entering new, potentially high-value market verticals and partnering with enterprises which value, and thus seek to leverage, our manufacturing prowess. This new relationship with Sionix is a perfect example of this strategy being executed. We look forward to a mutually profitable relationship that maximizes our capabilities while providing Sionix customers with the technology they need within the two to three month delivery timelines required to meet initial Sionix customer orders."

Sionix DAF water treatment systems target a wide range of niche applications for a shipping container-mounted water purification system. Sionix equipment enables water purification at any remote site or location either with limited access or insufficient infrastructure for permanent water purification facilities. Its portability and turnkey approach make it an ideal solution for remote and other situations.  Potential applications include: oil and gas drilling; treatment of abandoned mine discharge; emergency and disaster relief through private contractors as well as government entities such as FEMA and military in forward deployments; developing nations and remote villages in second and third world countries; various industrial applications including cosmetics, pharmaceutical, chemical, food processing, and hospitals; agricultural applications including irrigation and recycling of water; and use by small municipalities seeking wastewater treatment facilities on limited municipal budgets. The total market size exceeds $1 billion if the technology becomes widely adopted within these target markets.

The initial agreement calls for TechPrecision to manufacture 15-25 units in the first year. The agreement has significant upside potential to TechPrecision if market penetration and uptake rates exceed initial estimates.