SwingTrade Member Forum

[DCschmoeka]

HIET news - Navy Opens New Review of $1.6 Million Contract With HiEnergy
Friday August 29, 11:07 am ET
Tests of HiEnergy's CarBomb Finder(TM) in Preparation for Visit From Saudi Arabian Marketing Team Indicate Overwhelming Superiority


IRVINE, Calif., Aug. 29 /PRNewswire-FirstCall/ -- The Naval Surface Warfare Center (NSWC) has informed HiEnergy Technologies, Inc. (OTC Bulletin Board: HIET - News) that it has decided to undertake a new review of HiEnergy's financial condition based on updated information which HiEnergy provided regarding its financial status, with the view of re-evaluating a $1.6 million contract for a SuperSenzor(TM) prototype. At the same time, HiEnergy withdrew its formal protest filed with the General Accounting Office.
HiEnergy had competitively won the Department of Defense (DOD) bid to build a prototype of the SuperSenzor(TM) for detection of biological agents in sealed containers. The amount of $1.6 million (for a $200,000 feasibility study and a $1.4 million prototype option) had been allocated by the Defense Advanced Research Projects Agency (DARPA) and the Naval Surface Warfare Center (NSWC) in order to negotiate and sign the contract with HiEnergy. As the detailed contract terms were to begin negotiation, the Small Business Administration advised the Contracting Office of NSWC to deny the implementation of the contract, citing that HiEnergy did not have sufficient financial backing to meet the financial stability test.

HiEnergy filed a protest with the General Accounting Office, cleared its books from a cited liability and secured monetary support from a financial firm specializing in growth companies, which has agreed to provide the required funding of $2.5 to $4 million by purchasing shares in HiEnergy.

Due to this new funding arrangement, HiEnergy now believes it is financially eligible to obtain the contract and expects the Defense Contracts Auditing Agency to undertake another review.

"With the backing of a key player in the world of technology investment, HiEnergy will have the foundation to penetrate all potential markets and governmental contracts in full force," said Dr. Bogdan C. Maglich, Chairman, CEO and Chief Scientific Officer, HiEnergy Technologies, Inc. "Our emphasis, however, is not on fundraising by selling stock but on selling products," he said.

"Our Saudi marketing company, EEMCO, has formed a sales force for the CarBomb Finder(TM) targeting two dozen Middle Eastern countries," Dr. Maglich said. "The sales team consists of early-retired top army brass and university professors. We are currently preparing an in-field test for their visit that will demonstrate an overwhelming superiority of our technology over all others," he said.

Separately, HiEnergy received a number of inquiries yesterday from the public, shareholders and the press, asking how its SuperSenzor(TM) compares with thermal neutron carbomb finders. "While thermal neutrons have a range in materials of two inches, HiEnergy's SuperSenzor's range is four feet," Dr. Maglich said. "Thermal neutrons are intrinsically incapable of deciphering chemical formulas of unknown substances. The SuperSenzor(TM) does it in 10 seconds. Even the slow, low-end version of our technology, the MiniSenzor(TM), demonstrated during Navy tests held in January the ability to identify explosives with 100% accuracy," he said.

HiEnergy's SuperSenzor(TM) is more affordable, at a cost of 30% of the price of its competitor's version. The MiniSenzor(TM) is even less expensive. "Westinghouse had spent $200 million on developing a thermal neutron for explosives detection and abandoned it after 10 years," Dr. Maglich said.

ABOUT HIENERGY TECHNOLOGIES, INC.