LONGVIEW, Texas--(BUSINESS WIRE)--March 19, 2002--Summit
Environmental Corporation, Inc. (OTCBB: SEVT) announced today the
execution of a Master Distribution Agreement with China Tianfa Group
Corporation and Tianyang Group, Inc. for the sale of FlameOut(R) in
The People's Republic of China.
Representations for each party to the agreement met in Anaheim,
California in May 2001. The agreement reached will allow Tianyang to
sell FlameOut(R) and reproduce aerosol fire extinguisher cans in China
which contain the company's patented fire suppression agent -
FlameOut(R).
Minimum purchase requirements provide for a ramp-up from a minimum
of three (3) container loads of FlameOut(R) in the first year of the
agreement to ten (10) container loads in the third year and each year
thereafter. Each container load will fill 553,000 aerosol cans. In
addition to the sale of FlameOut(R) to Tianyang, Summit will receive a
5% royalty on all sales of the aerosol cans once reproduced.
Tianfa Corporation subsidiaries will serve as the distribution
network for the products in China.
China Tianfa Group Corporation is a large enterprise in the Center
of China. The Corporation owns Tianfa Co. Ltd., Power 28 Co. Ltd,
Tianrong Modern Agriculture Co. Ltd, and Shorilun Paper Co. Ltd.
Tianfa's public stock is listed on the Szechuan Stock Exchange. A
premier focus of Tianfa's marketing is petroleum products through a
nationwide network in China of convenience type grocery stores.
Official Licensing Permits to conduct business in China are in
process while representatives of Tianfa and Tianyang will be examining
adaptations to their local custom filling company in order to
facilitate the filling of aerosol cans.
Of additional news, one of the long awaited approvals for
FirePower 911(TM) in South America has been received and will be
reported in the next couple of weeks.
