Encore Energy Systems Inc (ENCS)

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8/12/08 Patents Royalties Cash Dividends...

Encore Energy Systems Releases Details for Patent License Agreement Payments for Shareholder Cash Dividends

Tuesday , August 12, 2008 11:08ET

OXFORD, Miss., Aug. 12 /PRNewswire-FirstCall/ -- Encore Energy Systems (Pink Sheets: ENCS) released today the details for payments under the patent license agreement.

Encore granted a worldwide license for its patents to Energy America Goethermal. Under the Agreement regular payments and commissions are due alongside regular reports on progress.

Payments schedule:

2% of Net Sales plus a Yearly Payment after a 2 year grace period of $20,000, $40,000, and $60,000 in years 1 through 3 respectively. The minimum payment per year after Year 3 is $100,000.

All royalty revenue received from these projects will be direct-deposited, in full, to a Shareholder Escrow Account. The dividend will be distributed to all record-date stockholders on an annual basis, pro rata.

The Record-Date for the cash dividend and a new stock dividend of Convertible Preferred Stock will be announced soon as part of the proposed merger with BioConversions International.

Management believes Encore and prior EGVI shareholders will receive ongoing equity returns from the cash dividend and Preferred Stock plans and the current plan mitigates or eliminates the effects of any ownership dilution that may occur as part of the proposed merger transaction.

About Encore Energy

The Company owns the patents for the use of grey-water, and domestic water in heat exchanger systems. They also provide all forms of conventional geothermal heat exchange systems. See our video at http://www.encoreenergyinc.com. The Company licenses its patented technology to other energy-related businesses.

Safe-Harbor Statement

This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. The company's web-site version of this press release contains various RISK FACTORS (and are incorporated herein by reference) and should be read before any investment decision.

Investor Relations:
Contact: Encore Energy Systems, Inc.
888-234-0963
[e-mail]

SOURCE Encore Energy Systems


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Contacts:

Investor Relations of Encore Energy Systems, Inc.
1-888-234-0963
[e-mail]


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