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Tire International Environmental Solutions, Inc. (OTCBB: TRIE) Signs Joint Venture Agreement With TIRES S.p.A.

^{Published on 2010-07-20 06:31:02 - Market Wire}
 

NEW YORK, NY--(Marketwire - July 20, 2010) - Tire International Environmental Solutions, Inc. (OTCBB: [ TRIE ]) announced today that it has signed a Joint Venture Agreement (the "Agreement") with TIRES S.p.A., an Italian manufacturer of heavy industrial processing and recycling equipment ("TIRES"). Under the terms of the Agreement, as part of a purchase order by Tire International Environmental Solutions, Inc. (the "Company" or "Tire International") and corresponding equity contribution by TIRES, the Company will own fifty percent (50%) of the U.S. patent pending for the TIRES state-of-the-art tire recycling plant, method and installation of recycling of used tires for conversion into finished products (the "Waste to Value Technology") for the North American market. Upon the completion of the installment sale transaction underlying the Agreement and the purchase order by the Company, TIRES will own approximately eight million shares of the Company's common stock in exchange for approximately $4 million in capital expense contribution out of equipment costs under a purchase agreement by the Company of approximately $13 million.

The burden of waste tires in the United States and emerging markets is becoming unsustainable as fewer landfills are being licensed for operation. It must be considered that the tires stored in a waste dump or landfill generates a proliferation of rodents, insects and reptiles, which find an excellent replacement to their natural habitat in the piles of tires. Moreover, the build-up of large rubber quantities involves in any case a great risk of fire with consequent environmental damage. In addition, disposal by combustion or use of chemical products causes serious environmental problems due to the introduction of toxic gases in the atmosphere. Because of their inalterability over long periods of time, without volume modification, the build-up of tires occupies larger and larger areas, creating serious environmental and social hazards. Of the nearly 300 million tires discarded in the United States each year, more than half end up either as landfill or are burned for fuel in cement kilns and in other industries.

Antonio Care, CEO of Tire International, stated, "This Agreement marks a joint cross-border commitment between two companies, each dedicated to dealing with one of the greatest threats known to the environment, waste tire stockpiles around the world. The Joint Venture with TIRE S.p.A. establishes a footprint design for the Company's future plans to develop one or more 'waste to value' tire recycling locations around the United States and provides the Company with a fifty percent, co-patent ownership of the TIRES S.p.A. patent pending in the U.S. for the North American market."

About Tire International Environmental Solutions, Inc.

Tire International Environmental Solutions, Inc. is a U.S. based company that is seeking one or more business opportunities in tire recycling, and waste to value sectors within the waste management industry.

For more information visit Tire International: [ www.tireinternational.net ]
For more information about TIRES S.p.A. visit: [ www.tiresspa.com ]

Forward-Looking Statements

This release contains "forward-looking statements" and information provided by Tire International Environmental Solutions, Inc., such as online, printed documents, publications or information available via Tire International Environmental Solutions, Inc's website. It may contain certain forward-looking statements that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause Tire International Environmental Solutions, Inc's results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words, including but not limited to, statements regarding corporate plans, strategies and objectives of management; statements regarding products, services or developments; statements regarding future economic conditions; and assumptions underlying any of the foregoing.