ELGT Electric and Gas Technology Inc (CE)

Electric & Gas Technology, Inc. (OTCBB:ELGT) today announced the completion of a financing arrangement that provides financing of its Garland, Texas manufacturing plant and the subsequent equity investment in the company by an affiliate. ELGT received financing of $3,250,000 from Government Personnel Mutual Life Insurance Company (GPM) headquartered in San Antonio, Texas. The financing is in connection with ELGT's 144,000 square foot manufacturing facility and corporate offices located in Garland, Texas. The transaction completes the purchase option of the real estate from affiliate, Interfederal Capital, Inc. (ICI). In conjunction with the closing, ICI has made an equity investment in ELGT in the amount of $665,000. The equity is in the form of 3% Cumulative Preferred Stock which is convertible to ELGT common stock based on a two hundred day trailing average closing price of the ELGT common stock. The use of proceeds is for general working capital requirements. George Johnston, Executive Vice President and CFO, stated "This event is significant because it checks two high level objectives off our turn around list established several years ago. We have consolidated all operations into this fine facility and are confident it will serve our needs to $50,000,000 and beyond. The transaction also cleans up years of accumulated balances between ELGT and arms length affiliates. ICI remains affiliated but only as an equity investor." About Electric and Gas Technology, Inc. Electric & Gas Technology, Inc. (ELGT) is a publicly traded company that, through its subsidiaries, operates in two main areas: (1) Utilities Products and (2) Contract Manufacturing. Headquartered in Garland, Texas, Reynolds Equipment Company, a wholly owned subsidiary, manufactures and sells gas measurement equipment to the natural gas industry world wide. The Company's products include mechanical instruments, electronic instruments and odorization equipment. Logic Metals Technology, Inc., a second operating subsidiary, has been a dynamic and reliable supplier of close tolerance fabricated metal components and assemblies to a variety of industries. The Company supplies precision fabricated parts to the telecommunications, electronics, medical, banking and sorting industries. Logic Metals provides precision sheet metal fabrication prototypes, small and large run parts and assemblies with exacting quality and engineering specifications. For additional information, visit our website www.elgt.com. This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, which represents the Company's expectations or beliefs concerning, among other things, future operating results and various components thereof and the adequacy of future operations to provide sufficient liquidity. The Company cautions that such matters necessarily involve significant risks and uncertainties that could cause actual operating results and liquidity needs to differ materially from such statements, including, without limitation: (i) increased competition, (ii) the price-sensitive nature of product demand, (iii) the Company's dependence upon favorable pricing from its suppliers and (iv) other risks indicated herein and in filings with the SEC.