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SHAREHOLDER UPDATE
May 13th, 2008
Dear Valued Shareholders,
It has been almost six weeks since we first announced the merger and reorganization between Atlantic Energy Solutions, Inc. and Notch Novelty, Inc. I felt this would be an appropriate time to write this letter to all of our valued shareholders, as well as to any prospective investors. The purpose of this letter is threefold. First, I would like to introduce Atlantic Energy to those of you that are either new to the company, or just not yet totally familiar with our industry, and with what we do. Second, I wish to provide an update on many of the exciting developments that are rapidly unfolding. Thirdly, I want to lay out our vision of the future of our industry, and the vital role that our company will play as we move diligently forward.
Company Background
Since the founding of Atlantic Energy as a private company in 1992, our purpose has been unchanged. Our mission has been to provide energy efficiency and conservation solutions to businesses and municipalities throughout America. Today, more than ever before, the need for energy efficiency and conservation has moved to the forefront of the public’s mind, and has become a top priority for all types of commercial and industrial entities and municipalities. The growing need for greater energy management, along with emerging public awareness has catapulted Atlantic Energy into an even greater position for success than at any time in our 16 year history. Our company has put together a proven track record of growth and profitability, and a winning tradition within our industry. We are more excited than ever before about the future of our business, and we look forward to taking the company even beyond our already high expectations.
Energy Industry
Atlantic Energy is what is known in the industry as an Energy Services Company (ESCO). We provide energy conservation and green building technologies as a turnkey solution to our clients. We implement Energy Conservation Measures (ECMs) ranging from building automation, Combined Heat and Power (CHP), roofs, doors, windows, boiler plants, photovoltaic panels, wind generation, and ground source geothermal to name some of the upgrades we provide. The annual savings realized by the implementation of these ECMs will not only pay for the finance term of the projects, but it will also create a healthy positive cash flow condition, creating a win-win situation for our clients.
The National Association of Energy Service Companies (NAESCO) is an organization that accredits, promotes and endorses Energy Service Companies (ESCO). They are committed to raising the bar in energy efficiency and conservation standards, and to promoting the highest level of business practices within the industry. To better carry out their mission, they sponsor a rigorous accreditation process which among many other prerequisites requires a minimum track record of 5-7 years of successfully implementing guaranteed energy projects. We, at Atlantic Energy, have the distinct honor of being among a very small and elite group of companies that have been officially recognized by NAESCO as an Accredited Energy Service Company. To better understand the significance of this achievement, and to view the complete list of NAESCO accredited companies, I encourage you to go to their web site at www.naesco.org.
Current Market Overview
It is certainly no secret that today’s energy market is quite volatile. These days, fuel and electricity prices alone are rising to new record highs on a regular basis. The new global demand for energy has risen very rapidly in recent years, and has changed the dynamics of the market. The industry is witnessing a groundswell of public awareness of the energy problems that are facing us. This growing demand for energy management, together with the current global market trends are clear indicators of the future direction of the energy industry. As a result of these global developments, spending on renewable and sustainable energy sources has jumped to between 100 and 150 billion dollars annually. Our proven track record of success has positioned us in such a way as to provide necessary energy solutions and take full advantage of the surging market. This significant expansion of the market has put us into an incredibly favorable position. Atlantic Energy has stepped to the forefront, and we expect to emerge as a leading provider of energy conservation. Our entire management team feels that our growth and profitability potentials are boundless. The sky is the limit for Atlantic Energy.
Current Company Developments
As a result of the growing needs of the market, we are in the midst of expanding our marketing sales force in several states throughout the country. We have already increased the size of our sales team in our New Jersey office and our California office. Those increases have proven to be successful and have already yielded positive results. Expansion in California may likely prove to be especially significant because of their greater inclination towards “green” technology compared to that of other states.
Some of our other recent developments include a lighting project we have initiated for Fortitech, Inc, a world leader in nutrient premixes, and our teaming up with another company to coordinate carbon emission credits for our clients.
Future Projections
We have put forward a conservative three year financial forecast that because of the current direction of our industry and the recent growth of the markets we are involved in; we feel we can likely double our original projections. We anticipate $11 million in total sales by the end of the current year, 2008. That figure should significantly increase each year in 2009 and 2010.
Based on our projections, we are expecting total sales of $116 million over the next 5 years.
As you are aware, we have recently made the transition from a privately held entity, to a publicly trading company. Throughout our history we have been able to achieve much success as a private company. The timing was right for us to make the transition to become publicly traded in order to take the company to new heights. Atlantic Energy is currently trading on the Pink Sheets. We expect this to be a brief stop on our way to another exchange. One of our short-term goals is to become a fully reporting company. We are in the final stages of completing the merger/acquisition between Atlantic Energy and Notch Novelty. The necessary filings with state and federal agencies have been done which will formally change the company’s name from Notch Novelty to Atlantic Energy Solutions. We anticipate the stock symbol to be changed soon from NHNV, to something reflective of the new name. Once our transition from Notch Novelty to Atlantic Energy is completed, we will be able to turn our attention to seek a listing on another exchange that will give us greater credibility and exposure. This goal is quite attainable and easily within our reach.
Obviously we will keep the public apprised of our ongoing developments, new contracts, and all other news by way of our press releases. In addition to press releases, I also hope to provide regular updates like this one that will serve to more thoroughly discuss the company’s progress, as well as to maintain solid lines of communication with the investing public. Our industry and our company are growing very rapidly; therefore I anticipate the need for regular shareholder updates. For this reason we have established an investor relations department which is in place to provide support to all of our current and prospective shareholders. You can reach our investor relations department by calling our toll free number 866-788-1600, or via email at ir@atlanticenergy.net.
I look forward to reporting on our further progress in the very near future.
Timothy J. Brock
CEO
