In connection with the sale, Kawasaki and Catalytica Energy Systems have released and discharged each other from and against all potential claims from their prior business relationship. Kawasaki plans to rename the technology the KLean™ (Kawasaki Lean) catalytic combustion system prior to the launch of its marketing efforts.
This sale advances Catalytica Energy Systems' recent initiatives to divest of non-core businesses, assets and technologies, drive the business commercially by reallocating resources on other revenue-generating activities, and maintain financial viability by reducing costs.
W.Y. Campbell & Company acted as the exclusive investment banking advisor to Catalytica Energy in managing the sale transaction, which was originally announced on July 3, 2006. Dan Shea, Managing Director, and Carl Genberg, Director, in W.Y. Campbell & Company's Los Angeles office led the transaction team.
W.Y. Campbell & Company is one of the nation's leading specialty investment banking firms concentrating exclusively on middle-market merger advisory services. Since inception in 1988, W.Y. Campbell & Company has successfully managed over 400 transactions. The company maintains offices in Detroit, Michigan and Los Angeles, California. www.wycampbell.com
Catalytica Energy Systems provides innovative products and services to meet the growing demand for emissions control solutions in the power generation and transportation industries. Through its SCR-Tech subsidiary (www.SCR-Tech.com), the Company offers a variety of services for coal-fired power plants using selective catalytic reduction (SCR) systems to reduce nitrogen oxides (NOx) emissions. These services include SCR catalyst management, cleaning and regeneration, as well as consulting services to help power plant operators optimize efficiency and reduce overall NOx compliance costs. Catalytica Energy Systems' other business activities include the design, development and manufacture of advanced products based on its proprietary catalyst and fuel processing technologies to offer cost-effective solutions for reducing emissions from combustion-related applications. The Company's Xonon® Diesel Fuel Processing technology is designed to facilitate a significant reduction in particulate matter and NOx emissions from mobile and stationary diesel engines by improving the performance of diesel particulate filters and NOx adsorber catalyst systems. Find Catalytica Energy Systems on the Worldwide Web at www.CatalyticaEnergy.com.
This news release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. These statements include, but are not limited to those regarding the estimated closing costs and other expenses relating to the completion of a sale of Catalytica Energy Systems' Xonon Cool Combustion gas turbine technology and assets to Kawasaki, the effect of the transaction on the Company's initiatives, the ability of the Company to achieve such initiatives, and the Company's beliefs regarding the effect of the transaction on the Company's cost structure. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others, the risks associated with the development, generally, of the Company's overall strategic objectives; the ability of the Company to improve financial viability, drive the business commercially, and build additional value in its business; possible fluctuations in economic conditions affecting the markets for the Company's products and services; the risk that a market may not develop or be maintained for the Company's products and services; the existence of unanticipated technical, commercial or other setbacks related to the Company's products and services that could result in termination of one or more of its product development efforts; changes in the environmental requirements relating to certain emissions; the uncertainty of marketing, project development and installation timelines and regulatory review outcomes; the possibility that the Company may be unable to maintain current or develop future strategic relationships for its products and services, including with OEMs, other strategic partners, and utility customers; the possibility that an OEM or other strategic partner could decide not to pursue development or commercialization of its products, which could negatively and adversely impact our business or results of operations; and the other risks set forth in the Company's most recent Form 10-K and subsequent Forms 10-Q filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances occurring after the date of this release.