Efficiency Technologies Issues Open Business Update Letter to Shareholders

TULSA, Okla., Sept. 14 /PRNewswire/ -- Efftec International, Inc. (Pink Sheets: EFFI), http://www.efftec.com, provider of the most advanced and effective HVAC water-cooled chiller optimization tool ever developed, today announced an open business update letter from its CEO, Michael Pruitt, to shareholders:

Dear Shareholders,

There has been a tremendous amount of change at Efficiency Technologies over the past year and I am pleased to issue an update to our shareholders. Having recently completed my first 120 days as President and CEO of the Company, I am eager to outline both our recent success as well as our go-forward strategy for growing our business and increasing shareholder value. I intend this letter to be the beginning of a continuous dialogue with both our shareholders and the investment community at large.

I believe the ultimate success or failure of any Company is almost solely reliant upon the strength of its management and employees. To that end, I am very proud to inform you that earlier this year, we were fortunate to name Keith Johnson as President of Efficiency Technologies, Inc., our wholly-owned operating subsidiary. Keith is a highly experienced and accomplished manager. He has a strong background in management and accounting, with experience in both large corporate as well as startup entrepreneurial companies. He previously served as CFO for Brinks Home Security, and in this capacity, he oversaw the financial and computer groups, which included 60 professionals and 150 total employees. His accomplishments include: the development of a new customer information system; oversight of analysis and planning functions; contributing to company growth from 4 to 65 markets, revenue growth from $5 to $190 million, and profit growth to $45 million. Additionally, Keith lived and worked in Europe for 3 years where he was instrumental in completing 11 acquisitions and creating two joint ventures for BAX Global. He has also started a telemetry and commercial alarm company, as well as serving on several Boards of Directors.

Over the past 120 days, your new management team has completed a detailed analysis of the business. We have spoken at length with key company stakeholders, including customers, suppliers, partners, employees and investors. We have gathered and analyzed a tremendous amount of data. And we have reached out to a number of very astute professionals, from both inside and outside the company, to assist in developing a strategic plan to both grow the business and increase shareholder value.

As a result of this assessment, I am excited to say that Efftec appears to have the most advanced and effective HVAC water-cooled chiller optimization tool ever developed. With our proprietary EffTrack solution:

• Customers typically reduce the electricity needed to produce a given amount of air conditioning capacity by between 15 – 25%
• At electric cost of just $.06/kwh, usage of 30% of capacity, and tonnage of 700; our typical EffTrack installation would have a cash-on-cash payback period of between 13.9 and 23.2 months. Higher electricity and capacity utilization rates and larger tonnage machines will reduce the investment payback period. Including utility rebates, a payback of less than 12 months is attainable.
• In addition to the savings from electricity, customers such as the Treasure Island Casino have utilized the system to monitor chiller maintenance intervals. Treasure Island has stated that this monitoring has added an additional approximate $3,000 in savings annually per chiller.

I am very pleased to report the EffTrack system is now installed and being utilized by more than 25 customers, many of which are Fortune 100 companies. Current customers include Las Vegas casinos and hotels, a Fortune 20 technology company, a Fortune 100 semi-conductor chip manufacturer, a Fortune 100 entertainment conglomerate, six separate locations of one of the world's largest healthcare companies, one of the world's largest design/build Electronics Manufacturing Services (EMS) providers, two universities, and, multiple locations at two major US-based medical centers.

Since my arrival, we have considered multiple strategic options for increasing shareholder value, including maximizing cash flow and earnings in the short run. Upon weighing these options, and not withstanding the recent economic slowdown, we determined that a strategy of prudent investment in the business and a goal of immediate profitability would yield the best result for our shareholders.

We are confident that Efftec has an extremely compelling product and solutions offering to take advantage of the enormous worldwide interest in energy conservation and specifically on improving energy efficiencies in large buildings. Large blue chip clients in a myriad of industries are discovering the enormous benefits of our system, in both energy efficiency and hard dollar savings.

Supported by a strong brand reputation and our enviable list of Fortune 100 customers, we intend to deliver significantly improved operating results by executing on four key objectives in 2010 and beyond:

1. Increase installed systems through additional sales to our existing blue-chip customer base;
2. Expand sales and marketing efforts to dramatically increase our sales pipeline;
3. Substantially improve upon our already successful chiller efficiency software with a substantial improvement of its diagnostic capabilities and customer interface; and,
4. Accelerate the expansion of our new product offerings to include a boiler efficiency software solution.

The company has dramatically increased its sales capabilities in the United States by adding six new manufacturers' representatives and one new commissioned sales representative. Additional installation and service personnel are being sought as are contract installation personnel. Our team is now focused and aligned to deliver on our revenue goals while we efficiently manage through the economic downturn.

We have also recently developed several notable relationships with a number of the large real estate management companies, including CB Richard Ellis, Jones Lange LaSalle and others.

The company is in a strong position to meet its revenue goals for fiscal year 2011. Currently the company has a sales pipeline of approximately thirty potential customers that amount to over $5.0 million dollars in business.

The company has recently completed an audit of its financial records for the fiscal year ended June 30, 2009 and is currently nearing the completion of the audit for the fiscal year ended June 30, 2010. We anticipate to be fully reporting and to file our annual report on Form 10-K prior to September 30, 2010. Thereafter, we will pursue a listing of our shares on the OTCBB.

We have already taken the first crucial steps in the execution of our plan. With our recent restructuring, we are now intently focused on building our revenue base and providing superior service for our customers. We believe these changes will allow us to continue to deliver product offerings that will significantly increase our strategic and enterprise value.

We believe that delivering on this plan will not only improve revenues and customer relevance, but will make us the energy efficiency partner of choice for manufacturers, hotels, hospitals, airports, sports complexes, universities, utilities, and a multitude of other end users.

The opportunity in front of us is very compelling. We believe we are positioned to execute on it. Through hard work and solid execution of our plan, we have the opportunity to deliver the kinds of results that will create considerable shareholder value.

Sincerely,

Michael Pruitt

President and Chief Executive Officer

Efftec International, Inc.

Forward-Looking Statements

This letter to shareholders contains forward-looking statements regarding future events and future results that are based on our current expectations, estimates, forecasts, and projections about the industries in which we operate and our current beliefs and assumptions. Sentences containing the words "believe," "would," "expect," "can," "intend," "plan," and "should" and variations on these words are forward-looking statements. In addition, any other statements which contain characterizations of future events or circumstances are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including: the risk that customers will not perceive the benefits of our new initiatives to be as great as we believe they will be; the risk that the current economic downturn will have a greater negative impact on Efficiency Technologies and the acceptance of our current and new services than we predict; the rapidly emerging changes in the nature of markets served by Efficiency Technologies; increased competition, which may cause pricing pressure on the fees iPass charges; and the other risks relating to our business..

SOURCE Efftec International, Inc.