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Axia Group, Inc. Provides Update on Construction Activities and Business Development
SAN DIEGO--(BUSINESS WIRE)--Aug. 17, 2006--
Axia Group, Inc. (Pink Sheets:AXGJ) today issued the following statement from Jeffrey Flannery, CEO and President, on recent activities and developments in the Company:
"We began last year with a modest goal to build a few hundred homes in Sri Lanka. Today we are truly an international company with the ability to expand our efforts worldwide. While growing our efforts in Sri Lanka, we hope within the next few months to demonstrate working projects in Central America, Louisiana and California.
To help us communicate our financial situation with our shareholders, we have hired a new accounting firm to help us update our financial reports and to allow us to be more timely in our reporting to shareholders. While we compile that information, I would like to offer the following update on our activities.
In Sri Lanka, Axia has continued to demonstrate progress on the project that we began last year with SOS Kinderdorf, a German nongovernment organization (NGO). We undertook to rebuild a village on the eastern shore of Sri Lanka, one of the areas hardest hit by the tsunami in 2004. Despite working under extremely harsh conditions, we have built 75 of the strongest and most attractive 'tsunami homes' in the country. The remaining homes will be completed by the end of the year.
By the end of 2006, we hope to show completion of more than $2 million in projects in Sri Lanka and initiation on several million dollars in new projects that we will strive to have completed in 2007. The SOS project in eastern Sri Lanka is $1.8 million in gross revenues. We had projected a 15% to 17% profit margin, but that is being adjusted as delays due to weather and the conflict have diminished our potential profits. However, we are negotiating with SOS to increase payments per home on this project in order to help compensate for these 'Acts of God and War.' In Galle, we are finishing a $180,000 project that will be profitable for the company.
While we will continue to support humanitarian efforts whenever possible, organizations in Sri Lanka have changed their rebuilding strategies in recent months, focusing less on single family homes. While we are continuing our talks and negotiations with other NGOs such as the Red Cross and UNOps, new projects are more along the lines of multistory apartments and school buildings. At the same time, we have much greater interest from the commercial and private sector in our technology. So we expect to see our company's focus shift more towards commercial projects.
To support this new work, we have added Oscar Stadthagen to our team to serve as General Operating Manager. Oscar has been building homes and commercial buildings with the panel technology for more than 9 years in Nicaragua, Costa Rica and other countries. Through his efforts we hope to bring talks with several potential clients to closure in the near future.
Our success in Sri Lanka has also led to new potential opportunities in the US and Central America. We are exploring a strategic relationship in the U.K. that will allow us to expand into Europe. We now have an experienced team of engineers, builders and project managers that can now command projects anywhere in the world. As recent company releases have indicated Axia is aggressively seeking to introduce our technology and building systems in the Southeast and Western United States.
It may appear that we are moving slowly, but when I look back at where we were as a company 8 months ago, I see major progress in many areas. We are now a construction, technology and consulting company that can take on a project of almost any size. We have a presence in the United States, Central America and the Far East. We will not show a profit this year and may not show a profit next year. To expect that from such a young company that has taken on an ambitious business plan is not realistic.
However, in my opinion we are the best at what we do - which is design and build structures with our panel technology. And as the world starts to recognize, as it is now doing, that we need alternative to timber, not just to save our forests but to protect us against storms and to help us save energy, I hope we will be at the forefront of this movement. In the coming months we will demonstrate that we are indeed the best."
More information on Axia Group, Inc. can be found on the company web site at www.axiagroup.info.
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of AXGJ officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future AXGJ actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and AXGJ has no specific intention to update these statements.
Source: Axia Group, Inc.
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