Hemiwedge Industries, Inc. (HWEG.PK) Marketing and Operations Update

CONROE, Texas, July 13 /PRNewswire-FirstCall/ -- Hemiwedge Industries, Inc. (Pink Sheets: HWEG), a global supplier of engineered valves focused in the oil/gas production, refining, mining, process, pipeline, power, mid-stream and petro-chemical markets, issued the following marketing and operations update today of the Company's progress on behalf of its shareholders.

Since the Company's update release in March 2010, the Company has acquired new customers domestically and internationally and continued to grow and improve operations.

Second Quarter and Six Months ending June 2010 Revenues

Unaudited revenues for the second quarter ending June 30, 2010 were approximately $575,000, or an increase of 164%, as compared to the second quarter 2009. Revenues for the first six months ending, June 30, 2010 were approximately $1.61 million, or an increase of 352%, compared to the first six months ending June 2009. Based on second quarter customer indications and industry activity levels in the market, the Company currently continues to estimate significant revenue growth in 2010 and beyond.  

The industrial valve market segments that Hemiwedge Valve Corp. are focused in continue to show signs of improvement from their 2009 lows.  While management did not see as many capital expansion projects by its customers during the second quarter, indications are these projects will move forward in the later half of this year and next year. Many of the company's current orders represent maintenance purchases and replacement of legacy ball valves products with which we compete.

Current backlog of purchase orders received, not yet shipped, totaled approximately $640,000 at June 30, 2010.  The customers associated with this backlog include a multi-national energy services customer, an overseas managed pressure drilling company, a chemical process company, domestic refiners, and products pipeline companies.

New Customers and New Applications for Hemiwedge® Cartridge valve.

The marketplace acceptance of the Company's patented Hemiwedge® Cartridge valve product line continues to be confirmed, particularly in severe service applications where legacy products fail prematurely and customers many times are actively seeking new product solutions.  One of Hemiwedge's significant new customer wins recently includes a global refinery company. This $75 billion market cap company sought our Hemiwedge Cartridge valve product for catalyst fines applications.  Repeat orders since the last Company update press release have been in several applications including chemical processing, pipeline and mid-stream applications.

Senior Credit Facility Refinanced

On June 30, 2010, the Company refinanced its matured bank term loan with two Houston-based private lenders. Under the new lending agreement, the notes maturity has been extended until June 30, 2011 and the debt service is now interest-only compared to the previous lender's principal and interest service.  Additionally, the new senior lenders have agreed to subordinate their lien on accounts receivable collateral in connection with a receivables financing facility if the Company requires it during the term of the loan. See other details in the Company's Current Report filed on Form 8-k on July 8, 2010.

Public filing status

Management is currently working on bringing its SEC filings current and it continues to be a priority for the Company.

About Hemiwedge Industries, Inc.

Hemiwedge Valve Corporation ("HVC"), a wholly-owned subsidiary of Hemiwedge Industries, operates as a global supplier of engineered valve products. In its 60,000 square foot ISO 9001 and API Q1 approved facility in Conroe, Texas, the Company manufactures and markets worldwide a patented proprietary valve technology known as the Hemiwedge® Cartridge valve product line. The Hemiwedge® Cartridge valve is a proven innovative design that incorporates a hemispherical wedge to provide a mechanically sealing, tight shutoff valve with a simple quarter-turn operation that provides outstanding longevity and performance in a broad range of applications.  Unlike ball valves, the stationary core of the Hemiwedge® Cartridge valve directs flow away from the seat surfaces which allows longer service life. The "Cartridge" feature reduces expensive downtime during valve maintenance as all of the internal parts of the valve are attached to the bonnet, as a Cartridge, which allows a quick exchange of all the internals of the valve while the valve body remains in the line. This feature is especially relevant in weld-in line valve bodies and severe service applications.  Hemiwedge® Cartridge valve has been successfully used by reference customers in applications including refining, mining, process, pipeline, power, mid-stream and petro-chemical markets.  The product line currently ranges in bore sizes from one inch to twenty inches, API 6D monogram, and ANSI class 150 through 900. For additional information on the Company and its products, please visit www.hemiwedge.com.

Forward-Looking Statements

This document contains discussion of items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, customer concentration risk, difficulties in refinancing or restructuring its debt, difficulties in accelerating internal sales growth, volatility of the energy business and its effects on the Company's business, difficulties in new technology acceptance within the energy and process industries, restrictive covenants in our existing credit facilities, fluctuations in metals prices, an inability to perform customer contracts at anticipated cost levels, political and economic global supply chain risk, general economic conditions in markets in which we do business, extensive environmental and workplace regulation by federal and state agencies, and other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission. All information provided in this release and in the attachments is as of July 13, 2010 and the Company undertakes no duty to update this information.

SOURCE Hemiwedge Industries, Inc.

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