Genco Acquires Complete Initial Generator Package in Preferred Stock Transaction

TYLER, Texas, March 31 /PRNewswire-FirstCall/ -- Genco Corporation (Pink
Sheets: GNCC) announced today the signing of a contract for acquisition of the
Phase 1 generators for its planned construction and operation of a biomass and
bio-gas production facility in Melbourne, Ontario, Canada. Acquiring the
generators is the crucial first step in securing the project's key components.
This generator package includes all of the necessary equipment to produce the
facility's initial 5 Megawatt (MW) electrical power target.
The contract calls for the owner, HalMar International (Canada)
Incorporated, to receive 1,200,000 shares of Genco $1 par value convertible
preferred stock, and will close upon funding of Genco's initial capital
offering.
The generator package includes two 2.5MW Baylor AC generators, along with
the associated engines and ancillary equipment. The generators were
retrofitted from diesel to be able to burn low calorific value gas, such as
methane. This was completed by Siemens in May 2000 after which they operated
only a few hours before the associated project was cancelled. The generators
originally cost $4.8 million and have an estimated current market value of
$2.8 million. The ancillary equipment, including scrubber tower, mufflers and
associated stainless piping, are estimated at a $1.2 million value to the
project.
Genco plans to capitalize on favorable regulatory, political and economic
climates to provide a Green Power Processing Facility aimed at electrical
power generation and agricultural effluent-recycling. The Company's vision is
to be one of the premier Green Power generators operating from renewable
sources and upholding good environmental policy while providing an essential
service to consumers.
Management projects cumulative earnings before interest, depreciation and
taxes (EBITDA) to total $55,882,164 on cumulative sales of $69,411,877 after
five years. This would give Genco Corporation a valuation of 8 times EBITDA,
or $139,696,640 after five years.
SAFE HARBOR STATEMENT
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements, other than the statements of historical facts, may be
deemed to contain forward-looking statements with respect to events, the
occurrence of which involves risk and uncertainties, including, without
limitation, demand and competition for the company's products and services,
the availability to the company of adequate financing to support its
anticipated activities, the ability of the company to generate cash flow from
operations and the ability of the company to manage its operations. As
statements regarding future events concern management's estimates of future
results of operations, and as these estimates are based on many elements
beyond management's control, differences from these estimates may be material.
CONTACT INFORMATION
Corporate Contact: Robert Hardy
President
903-581-2040
ROBERT@GENCOCORP.COM
www.gencocorp.com

SOURCE Genco Corporation

Robert Hardy, President, Genco Corporation, +1-903-581-2040
ROBERT@GENCOCORP.COM