Encore Energy Systems Inc (ENCS)

[mick]

i did click to. reading is as said by ENCS.
http://www.encoreenergyinc.com/page.php?page=article&newsid=90

Encore Energy Systems continues rapid growth with new development contract

BRIGHTON, MI - November 14, 2007
Encore Energy Systems, Inc. (Other OTC: ENCS), a rapidly growing diversified energy company, announces its wholly owned subsidiary, American Geothermal, has been awarded the HVAC contract on a new multifamily/retail development in Austin, Texas.

The development is the “East End Flats” with work scheduled to begin later this month. The project will comprise of 27 loft apartments with street-side retail stores.
The general contractor is Ion Constructors, LCC based in Austin has awarded American Geothermal the HVAC systems. The total contract value will generate revenues estimated at $150,000.00 for the company.

Chief Technical Officer for Encore Energy Systems, Victor DeMarco commented “We are very excited to start work on a new multi-family projects. These types of projects are being built throughout the United States and our Company is well positioned to fill this niche”

The Company continues to experience increased interest in its geothermal cash saving solutions. Our client prospect list is growing on a weekly basis with our projected sales estimates still on track to achieve our 18 month anticipated revenue target. We intend these press releases to keep our shareholders informed of significant company events as they occur.

About the Company
Encore Energy Systems grows through energy-related acquisitions, marketing its patented geothermal water-air heating/cooling systems, and sales of energy conservation solutions.

The company's unique patented DeMarco Energy Miser has been installed in public buildings and military facilities in Oregon, Pennsylvania, Washington, Montana, South Dakota, Mississippi, California and Texas. Encore's primary focus is to provide energy efficient technologies to commercial and institutional markets that result in significant energy and cost savings. For more information, visit http://www.encoreenergyinc.com.

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.

RISK FACTORS
YOU SHOULD CAREFULLY CONSIDER THE RISKS DESCRIBED BELOW BEFORE BUYING SHARES. IF ANY OF THE FOLLOWING RISKS ACTUALLY OCCUR, OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS COULD BE MATERIALLY AND ADVERSELY AFFECTED, THE TRADING PRICE OF OUR COMMON STOCK COULD DECLINE AND YOU COULD LOSE ALL OR PART OF YOUR INVESTMENT.

Securities Regulatory Risk
The securities industry is heavily regulated. The US Securities and Exchange Commission (The “SEC”) has the power to suspend trading of a security. The SEC may also permanently suspend a company’s ability to have its stock traded on the open market. The SEC can, and has frequently, suspended trading on a security without notice , without probable cause of wrongdoing, or due process of law. A security can be deleted and permanently suspended from trading by insignificant technical and unknowing violations of any one of the vast regulations that comprise the body of law the SEC enforces. Stockholders in a public company will lose their entire investment if the SEC suspends a security from trading. You will have no recourse under the law and your entire investment will be destroyed. We believe the “SEC regulatory risk factor” as the single largest and most dangerous business risk for any public investor.

Revenue Projections
The sales/revenue projections are provided by Management. Although Management has no reason to question the validity of the assumptions used in the projections, there is no guarantee that the projected results will be achieved. If we included our revenue expectations for our international markets, the revenue projections would be adjusted upward accordingly. However, Management is not prepared at this time to make good-faith estimates on these markets. We have therefore not included our international revenue expectations.

Dependence on Strategic Partners, Alliances and Sub-contractors
We depend on successful partnering with various parties. If a partner fails to deliver on its agreements or the Company fails to resolve any disputes or reach agreement, there will be a material adverse effect on the Company's business.

We have a limited operating history and have never been profitable on a consolidated basis.
Since our inception in 1983 up through 2005 we have experienced minimal revenues. We are presently experiencing rapid increases in revenue and sales growth. Our operational sub-units operate profitably with positive cash-flow. We will maintain this operational strategy for the foreseeable future. Our earnings on a consolidated basis can be negative because of past losses and ‘paper losses’ from deferred compensation expenses and similar accounting entries. The company’s operations are cash-flow positive and do not require additional capital to continue our operations. We provide energy saving solutions utilizing our in-house technology in addition to technology owed by others. We own patents for our Energy Miser cooling/heating system and we anticipate generating revenue in the form of royalty fees from the sale of these systems as well as systems from other vendors as part of our solutions based revenue model. If our anticipated future sales do not occur, investors in our common stock will likely lose their entire investment. Our expenses related to sales, operations and general and administrative expenses may cause operating losses for the near future. If operating losses continue, shareholders could lose their entire investment.

We may need additional funding
We believe our ability to finance customer projects can be satisfied through various project finance sources. We anticipate our operational business units and subsidiaries to remain profitable and may not require any additional capital to expand operations. However, if we require future expansion or fail to secure timely project financing as required, we will need to seek additional capital through public or private sales of our securities, including equity or debt securities, in order to fund our activities on a long-term basis. We may not be able to obtain adequate funds, whether through financial markets or collaborative arrangements with strategic partners or from other sources, on acceptable terms when needed. If we are successful in raising additional capital, investors and shareholders could face substantial dilution of their investments.

Some of our business is dependent on acceptance by government regulators.
One of our products is the Energy Miser. A significant obstacle confronted by the Energy Miser has been governmental interpretation and regulation. In most instances, we need to interface, (although not contact the water) with public water supplies in order for our customers to receive the benefits of our system. Some government regulators have been resistant in allowing us to tap into public water mains for fear of contamination of the water even in the face of a definitive Department of Energy report proving the system completely safe. If government constraints continue it will limit the markets we can compete in and our shareholders would be adversely affected. We mitigate the possibility of government interference in our business by utilizing technology and solutions from many different vendors and by stressing a solutions based business model as compared to a product-based model. We also focus on large customers who control their own water systems and therefore eliminate the possibility of government meddling.

We face strong competition that we may not be able to overcome.
Our Energy Miser system and the systems we obtain from other vendors has many competitors, many of whom are large with well-known brands and manufacture their own systems. Some of our larger competitors include Trane, Carrier, York and Dunn & Bush. These competitors use cooling tower boiler applications that we believe are inferior to our municipal and grey water geothermal applications, but because of the relative financial strength of these competitors, we may not be afforded the opportunity to demonstrate the advantages of our system over competitors' systems and, as such, sales will not materialize and shareholder investments could be lost.

We are dependent key personnel and need to hire additional key employees.
Our operations are dependent on key executive personnel. If any of these people were to expire or become incapacitated, there is currently no successors who could execute our business plan. If we are unsuccessful in attracting qualified personnel we will not be able to increase sales significantly.

If our products fail we could become subject to product liability claims for which we may not be adequately insured.
If we develop and install our products, we may be exposed to product liability claims. We might also be required to indemnify manufacturing affiliates against any product liability claims incurred by them as a result of products developed by us under agreements with these affiliates. We currently do not carry adequate product liability insurance. If we experience an uninsured or inadequately insured product liability claim, our business and financial condition as well as investor value would be materially adversely affected.

FORWARD-LOOKING INFORMATION
From time to time, we or our representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but not limited to, press releases, oral statements made with the approval of an authorized executive officer. Words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "project or projected", or similar expressions are intended to identify "forward-looking statements". Such statements are qualified in their entirety by reference to and are accompanied by the above discussion of certain important factors that could cause actual results to differ materially from such forward-looking statements.


Contact:

Encore Energy Systems, Inc
Investor Relations
[e-mail]