Energtek Continues Negotiations for Reverse Merger of Subsidiary With Public Company on Tel Aviv Stock Exchange

NEW YORK, January 24, 2011 /PRNewswire-FirstCall/ -- Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today announced that the company remains in continued negotiations to merge its fully-owned Israeli subsidiary Energtek Products Ltd. with Biri Barashi Land Works, Development, Infrastructure & Roads Ltd., a public company on the Tel Aviv Stock Exchange (TLV: BIRI).

In the Memorandum of Understanding signed with Y.H. Dimri Construction and Development Ltd. (TLV: DIMRI) and its subsidiary BIRI on December 16, 2010, the parties expressed their willingness to try to complete negotiations and reach a final agreement by January 20, 2011. Since the signing of the MOU the parties have been involved in negotiations addressing the business and legal aspects of the transaction. In parallel the parties have been performing mutual due diligence.

As the two parties are still remain engaged in due diligence and negotiations following the period allotted for those activities in the MOU, both parties have agreed to continue activities with the intention of reaching a comprehensive final agreement as soon as possible.

"The parties are investing significant efforts to become fully acquainted with one another, and are working to shape an agreement that will benefit each party and their respective shareholders," said Energtek CEO Lev Zaidenberg. "We aim to create a final agreement that will enable both parties to take full advantage of the many promising opportunities currently available in the growing oil and gas exploration and distribution industry in Israel."

About Energtek

Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved on oil and gas exploration in Israel. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit www.energtek.com

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and other matters set in Energtek's filings. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.

    Contacts:

    Investor Relations
    [email protected]
    +1-212-999-6202

SOURCE Energtek Inc.

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