UltraStrip Systems, Inc. announced that it has entered into an exclusive distribution agreement with Robotic Environmental Services, LLC (RES) of Baton Rouge, La. for the sale of UltraStrip’s patented robotic hydroblasting systems in Louisiana
and Texas. This agreement represents UltraStrip’s entry into a new market and we are very excited to assist Robotic Environmental Services in its penetration of the above-ground storage tank coatings removal industry as well as the oil production facility and barge markets for coatings removal, according to Robert O. Baratta, President and Co-Chief Executive Officer of UltraStrip Systems.
The distribution agreement is for a term of five years and establishes minimum purchasing requirements necessary to maintain RES’ exclusivity in the two states. The minimum number of robotic systems required to be purchased during the term of the agreement to maintain exclusivity is expected to generate approximately $20 million dollars in sales. RES also received an option from UltraStrip to acquire the exclusive distribution rights in Venezuela. To exercise this option RES must purchase four additional robotic systems by June 30, 2002.