Press Release for Custom Designed Compressor S
CDC Systems Inc. Update to Shareholders and Response to Recently Raised Questions
10/15/2004 4:37:00 PM
DALLAS, Oct 15, 2004 (BUSINESS WIRE) -- CDC Systems Inc. (PINK SHEETS:CPYJ) today announced a response to recently raised questions and would like to update shareholders.
CDC Systems aligned itself with several respected companies within the Bloomfield, Farmington, and Aztec, N.M., area, located within the San Juan Basin to start production of our compressor systems.
CDC Systems has relations with major suppliers to the natural gas industry e.g., Noels in Bloomfield, N.M., a major supplier of parts, fittings and Kimray Valves and controls; RCO of Farmington, a supplier of fittings and industrial hoses; Rig Equipment and Supply of Farmington, a large supplier of fittings, valves and equipment supplies; Rotation Power of Farmington, a company providing sales and service of pump jacks to the field. These suppliers are well respected and will continue an ongoing relationship with CDC Systems.
CDC Systems is located in the heart of one of the largest natural gas deposits in the U.S. Presently CDC Systems is working with the local real estate firm, "Demick Realty, Mr. David Harris" to review expansion sites. Two possible building sites for expansion have been identified as we continue to move forward. O.W. Construction is currently reviewing our building plans for a bid.
CDC Systems has also placed orders for ten engine/power systems for further manufacturing requirements from Mr. Jimmy Bond, Cummins Rocky Mountain LLC. This order is in addition to inventory valued at approximately $600,000 to $800,000 currently physically on hand for manufacturing of our compressors. CDC Systems is currently in negotiations with S.W. Power Tool for preferred pricing on Quincy Compressors.
Lobo Compression's building is not Adobe style and the work force was doing exactly what they are employed to do, "work." Lobo Compression builds compressors, and enjoys an excellent reputation within the area. Phone calls placed to Lobo Compression were received by an office secretary who is not directly involved in business dealings and not by management.
CDC Systems entered the public market to obtain funding to energize its production and to pull together several entities thereby uniting them for a singular mission. This mission is to manufacture their compressor systems and begin meeting the demand in this niche market.
Approximately 99% of the approximately 4,500 issuers on Pink Sheets have not registered their stock with the SEC. These issuers operate under well-recognized legal exemptions from registration.
CDC Systems has retained securities counsel who is knowledgeable in SEC regulations and completely independent from our previous counsel. A complete review of all our business activities will be conducted to ensure we are fully in compliance with all regulations. To our knowledge we have not violated any rules and as a growing business continue to strive to provide a needed service and use our best efforts to meet our stockholders' expectations. As a business we are continually conducting internal audits to best comply with rules and regulations that apply to CDC Systems.
CDC Systems has secured the services of Gwen L. Alston CPA in Farmington, N.M., for bookkeeping and taxes, and an independent firm in Albuquerque, N.M., will be selected to carry out independent audits and future SEC audits with the goal of becoming a reporting company.
With 115,000,000 outstanding, market capitalization has never exceeded $650 million, and CDC Systems retired 54 million dropping the outstanding to 61 million.
CDC Systems' transfer agent, Holiday Stock Transfer, had an unfortunate unintentional clerical error in 1994 regarding a restrictive legend on a certificate. Holiday Stock Transfer is licensed with the SEC to serve as a transfer agent and has had no other issues.
CDC Systems has no knowledge of J Alexander's history and has no interest in it. CDC Systems has no direct contact with J Alexander but has since learned they've entered into bankruptcy.
CDC Systems 800 number has been overwhelmed over the past few weeks with phone calls, but is getting to the calls and messages as quickly as possible.
For more information about CDC Systems Inc. go to www.cdc-systems.com
SOURCE: CDC Systems Inc.
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Patrick Arnett, 281-999-7721
