Cryocon, Inc. Acquires XTool, Inc. of Salt Lake City; Cryogenic Processing Company Expands Into Petroleum Markets

Apr 03, 2001, 01:00 ET from Cryocon, Inc.

    OGDEN, Utah, April 3 /PRNewswire/ -- Cryocon, Inc.
 (OTC Bulletin Board:   CRYQ), an Ogden, Utah based public company that provides
 a proprietary material treatment process called Deep Cryogenic Tempering
 (DCT), today announced that it has acquired XTool, Inc.  XTool is a
 Salt Lake City based manufacturing company that provides tools and services
 for down-hole oil and horizontal directional drilling (HDD) operations in the
 petroleum industries.  Cryocon acquired XTool for 250,000 shares of Cryocon
 common stock.  XTool has branch operations in Bakersfield, California and
 Farmington, New Mexico.  The acquisition of XTool is expected to enhance
 Cryocon's market penetration of the petroleum industries.  Last September,
 Cryocon signed a Cooperative Research And Development Agreement (CRADA) with
 the United States Department of Energy to research and develop specific
 cryogenic applications for the petroleum industries.  The three-year agreement
 includes partnerships with the Naval Petroleum and Oil Shale Reserves-CUW and
 the Rocky Mountain Oil Testing Center.  In December of 2000, Cryocon signed a
 contract with Sorensen Construction, Inc., located in Syracuse, Utah, to use
 it's DCT process to treat horizontal directional drill bits.
     According to J. Brian Morrison, Chairman and CEO of Cryocon, Inc., "This
 acquisition is part of our strategic marketing plan to merge cryogenic
 technology into the petroleum industries.  XTool, for example, has a number of
 advanced proprietary tool designs and concepts that will benefit from the DCT
 process.  With the HDD market being one of the fastest growing sectors in the
 drilling industry today, Cryocon hopes to financially gain from this new
 acquisition."
     "Cryocon's DCT process will provide XTool with performance-enhancing and
 potential cost-saving applications for our tools and product lines and allow
 us to bring an exciting new dimension to the petroleum and HDD industries,"
 said XTool President Miles G. Pierson.  "The net result of our incorporating
 DCT into our manufacturing facilities will be tools that are stronger and more
 durable, and thus will last longer and perform better.  XTool will now provide
 DCT treated tools that will result in reduced procedural failure and enhanced
 oil well performance.  Customers will realize reduced down time, reduced
 maintenance costs, and increased profits."
 
     DCT is a computer-controlled tempering process that significantly improves
 the wear and performance characteristics of many types of metals, alloys, and
 synthetic materials.  DCT utilizes liquid nitrogen that is flashed to a gas to
 achieve temperatures of minus 300 degrees Fahrenheit.  This technique is
 completely dry and eliminates the condition known as thermal shock, which is a
 problem related to traditional cryogenic applications involving spraying or
 dipping.  Treated items show dramatic increases in wear resistance, toughness,
 machinability, thermal and dimensional stability.
 
 

SOURCE Cryocon, Inc.
    OGDEN, Utah, April 3 /PRNewswire/ -- Cryocon, Inc.
 (OTC Bulletin Board:   CRYQ), an Ogden, Utah based public company that provides
 a proprietary material treatment process called Deep Cryogenic Tempering
 (DCT), today announced that it has acquired XTool, Inc.  XTool is a
 Salt Lake City based manufacturing company that provides tools and services
 for down-hole oil and horizontal directional drilling (HDD) operations in the
 petroleum industries.  Cryocon acquired XTool for 250,000 shares of Cryocon
 common stock.  XTool has branch operations in Bakersfield, California and
 Farmington, New Mexico.  The acquisition of XTool is expected to enhance
 Cryocon's market penetration of the petroleum industries.  Last September,
 Cryocon signed a Cooperative Research And Development Agreement (CRADA) with
 the United States Department of Energy to research and develop specific
 cryogenic applications for the petroleum industries.  The three-year agreement
 includes partnerships with the Naval Petroleum and Oil Shale Reserves-CUW and
 the Rocky Mountain Oil Testing Center.  In December of 2000, Cryocon signed a
 contract with Sorensen Construction, Inc., located in Syracuse, Utah, to use
 it's DCT process to treat horizontal directional drill bits.
     According to J. Brian Morrison, Chairman and CEO of Cryocon, Inc., "This
 acquisition is part of our strategic marketing plan to merge cryogenic
 technology into the petroleum industries.  XTool, for example, has a number of
 advanced proprietary tool designs and concepts that will benefit from the DCT
 process.  With the HDD market being one of the fastest growing sectors in the
 drilling industry today, Cryocon hopes to financially gain from this new
 acquisition."
     "Cryocon's DCT process will provide XTool with performance-enhancing and
 potential cost-saving applications for our tools and product lines and allow
 us to bring an exciting new dimension to the petroleum and HDD industries,"
 said XTool President Miles G. Pierson.  "The net result of our incorporating
 DCT into our manufacturing facilities will be tools that are stronger and more
 durable, and thus will last longer and perform better.  XTool will now provide
 DCT treated tools that will result in reduced procedural failure and enhanced
 oil well performance.  Customers will realize reduced down time, reduced
 maintenance costs, and increased profits."
 
     DCT is a computer-controlled tempering process that significantly improves
 the wear and performance characteristics of many types of metals, alloys, and
 synthetic materials.  DCT utilizes liquid nitrogen that is flashed to a gas to
 achieve temperatures of minus 300 degrees Fahrenheit.  This technique is
 completely dry and eliminates the condition known as thermal shock, which is a
 problem related to traditional cryogenic applications involving spraying or
 dipping.  Treated items show dramatic increases in wear resistance, toughness,
 machinability, thermal and dimensional stability.
 
 SOURCE  Cryocon, Inc.