RIVERBANK, Calif., Aug. 30, 2005 (PRIMEZONE) -- Itec Environmental Group, Inc. (OTCBB:ITEC) announced today that it is no longer indebted to Cornell Capital Group under a standby equity distribution agreement (the "SEDA") whereby Cornell loaned funds to Itec. Pursuant to the terms and conditions of the SEDA, Itec placed in escrow shares of its free-trading common stock as security for its loan obligations to Cornell. From time to time, Cornell has sold shares of common stock of Itec held in escrow to satisfy unpaid loan obligations of Itec to Cornell.
As a result of Itec's satisfaction of all of its obligations under the SEDA, all shares of common stock of Itec held in escrow have been returned to Itec. Though the SEDA remains in place, Itec does not anticipate the need to renew any loan commitments or arrangements with Cornell.
Gary De Laurentiis, Chairman & Chief Executive Officer of Itec, commented, "Repayment of Itec's loan obligations to Cornell underscores the ability of Itec to meet its financial commitments and obligations. Itec looks forward to increased operations and further meeting its business objectives."
About the Company
Itec Environmental Group offers solutions to pressing environmental problems faced by public agencies and private entities involved in the recycling of plastics. In a research partnership with Honeywell FM&T, Itec has developed and successfully commercialized a new system for the recycling of plastic containers. Its proprietary Eco2(tm) System costs 30% less to operate, uses no water, removes all contaminates and odors from the finished flake, is closed-loop and thus non-polluting, and produces no toxic by-products.
Please visit our web site at http://www.iteceg.com. Any interested parties wishing to be included in Itec Environmental Group's mailing list, please email your request to info@iteceg.com or contact: Gary M. De Laurentiis, 209-881-3523.
Cautionary Warning Regarding Forward-Looking Statements
This press release may contain "forward-looking statements". In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to attract and retain key executive officers and the professional advisors necessary to guide us through our corporate restructuring; (4) the successful consummation of the $2,000,000 loan through the California Integrate Waste Management Board; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders, creditors and/or former or current investors; (7) the Company's ability to comply with federal, state and local government regulations; (8) the Company's ability to secure raw plastic and produce and sell a large quantity of its PET and HDPE flake; and (9) other factors over which we have little or no control.