LITTLE RIVER, S.C., April 2, 2013 (GLOBE NEWSWIRE) -- Integrated Environmental Technologies, Ltd. ("IET" or the "Company") (OTC Bulletin Board:IEVM), today provided a review of the Company's 2012 corporate activities and an overview of the Company's business strategy for 2013 in a letter to the Company's stockholders from David R. LaVance, the Company's President and Chief Executive Officer. The letter has been posted on the Company's website, www.ietltd.net . The contents of that letter are provided below.
Calendar year 2012 was a year of dramatic change and progress for IET. I am pleased to report that our team at IET has been working diligently over the past year to change the Company into a successful and valuable business by adopting, and now implementing, a new strategy focusing on certain chosen markets. This activity required fundamental changes in the way the Company operates, which include the following:
- The most fundamental change in the Company is the conversion of the Company's business and marketing model from that of a capital equipment manufacturing company to that of a consumables supply company. In other words, IET no longer sells equipment, it sells catholyte and anolyte solutions, which follows the business model of selling razor blades instead of razors. In order to do that, we have ended the dealer and distributor relationships centered on equipment sales. As a natural consequence, we ended our warranty program and its attendant obligations. Now, we supply our solutions to customers directly, with only a few exceptions. We believe that this change has greater promise of creating stockholder value.
- We have also taken steps to rebrand our anolyte solutions. We are now offering our anolyte disinfecting solution under a second trademark, Excelyte®. We tested new packaging, new trade dress and new product presentations for our anolyte solutions. We reviewed and rejected dozens of ideas and approaches, finally settling on what we felt could be optimized in the marketplace. Our revised look is being introduced to the market as we expand our sales and marketing efforts.
- IET also has taken steps to broaden its EPA label for its anolyte disinfecting solution. The broadened label would provide that our anolyte disinfecting solution eliminates certain pathogens extremely important to our customers. Tests results conducted at an independent EPA approved laboratory showed that our anolyte disinfecting solution eliminated tuberculosis, CRE's Klebsiella pneumonia carbapenemase (KPC) and New Delhi Metallo-Beta Lactamase (NDM), C. difficile spores and other bacteria and viruses. We have filed an application with the EPA to amend our label to include these pathogens, and believe the label extension for most of them should be approved in the coming months.
The Company also reviewed the many market opportunities for its anolyte solutions in order to determine those markets in which it has the greatest opportunity of selling significant amounts of its anolyte solutions at a satisfactory profit margin. At this time, we have focused our ongoing work on markets calling for "commercial" quantities of our anolyte solutions. This means bulk sales in barrels and totes, rather than sales by the gallon jug or quart bottle. The markets we have selected include three main focal points: Agriculture and Dairy, Oil and Gas, and Healthcare Facilities; and we have made advances in all three.
- Agriculture and Dairy – We have placed our initial emphasis on the dairy market where we are now selling our anolyte solutions to dairy farmers for use as a hard surface disinfectant, as a teat conditioner and as a laundry additive to disinfect the wipes used in the milking process. Receptivity in the initial sales area, Utah and Idaho, has been good and sales have been steadily increasing. We intend to expand to other regions as capital and manpower allow.
- Oil and Gas – We continue to believe that our anolyte disinfecting solution has great utility in hydraulic fracturing and in producing well maintenance in eliminating bacteria. We have initiated sales efforts to treat both the injected and produced water used in or resulting from hydraulic fracturing as well as to treat the amount of hydrogen sulfide present in producing wells. We are focusing our current sales efforts in the Western U.S. Our investigations and sales process indicate that producing wells in areas containing a high level of hydrogen sulfide, especially in shallow wells, are easily treated by our anolyte disinfecting solution.
- Healthcare Facilities – Our recent news about the effectiveness of Excelyte® in killing CRE's such as KPC and NDM and other "superbug" pathogens is an indicator that market receptivity should be high in the hospital and nursing home markets. We have been working with a hospital to develop data from actual product use in patient rooms on the hospital floor, and have been developing new delivery systems, disinfecting methods and protocols that will show the hospitals and nursing homes how to use our anolyte disinfecting solution to its optimum level. We intend to be a leader in disinfection for healthcare facilities and believe our solutions can help reduce the tragedies that arise from hospital acquired infections.