Reality Wireless Networks (fka RWNW)

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Arabian Recab for Trading Co., Reality Wireless Networks' Merger Partner, Announces Major Quarry Acquisition
Tuesday September 6, 10:01 am ET


GIG HARBOR, Wash.--(BUSINESS WIRE)--Sept. 6, 2005--Arabian Recab for Trading Co. ("Recab International"), the merger partner of Reality Wireless Networks, Inc. (OTCBB:RWNW - News; "Reality") announced that its mining division ("ARCO-MINE") has acquired a business that operates one of Saudi Arabia's major granite quarries. Recab International anticipates generating $7 million of annual revenue from this acquisition.
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The quarry acquired has one of the most internationally sought after quality and color of granite called "Najran Brown." This type of granite is only available from Saudi Arabia and there is a perpetual shortage internationally of this quality leading to high selling price and one of the best returns in the business.

Recab International plans to increase the present production rate of this quarry threefold to over 10,000 cubic meters per annum, which will reduce the per unit production cost and increase the profitability. The current export price of the Granite is about $700 per cubic meter (with current costs of approximately $250 per cubic meter). Demand for the granite comes primarily from Italy and China.

Recab International anticipates a $3.3 million profit to be generated from producing 10,000 cubic meters over a twelve month period.

Factory

ARCO-MINE has also acquired a marble and granite cutting and polishing factory in Jeddah, Saudi Arabia. This factory currently has a capacity of producing 2,000 square meters of granite and marble. It is expected that within a period of 6 months this capacity will be expanded to 6,000 square meters.

The end product of this factory, which is "Fabricated Granite and Marble" (polished and cut to size slabs and tiles), is exported mainly to the Unites States and Canadian building market. The local market for slabs and tiles in the Arabian Gulf area is also very strong due to the construction boom in the Middle East.