Sionix Joins TII to Install, Operate Mobile Water Treatment Systems in Japan

April 13, 2011
Pending successful onsite testing of first MWTS, memorandum of understanding contemplates purchase by TII

Sionix Corp., designer of innovative and patented, advanced mobile water treatment systems (MWTS), announced that it has signed a Memorandum of Understanding (MOU) with TII Trading International Investment Inc. (TII), an operating unit of SAPO Intl., S.A., working with multiple public and private agencies in Japan. The MOU contemplates the purchase by TII of 30 MWTS and the subsequent manufacture of more in Japan to remediate contaminated water caused by the recent earthquake and resulting tsunami, including removal of radioactive contaminants. TII intends to finance its purchase of the 30 MWTS by obtaining a letter of credit from a banking institution.

The MOU also defines the general terms and conditions under which TII and SIONIX will form a joint venture to provide ongoing, long-term fabrication and assembly of MWTS in Japan to remediate drinking water and wastewater in multiple refugee centers being established in affected areas. The events of March 11, 2011, decimated basic infrastructure, and created leaks and potential leaks from multiple nuclear power plants which threaten the health and survival of the local inhabitants, and impact necessary social and community services. It is anticipated that the joint venture will become a licensee of SIONIX intellectual property, including patent and know-how in Japan and its external territories.

The anticipated cash proceeds to SIONIX from this significant transaction, if consummated, will include the sale of MWTS, a share of earnings from the joint venture, and license fees for use of SIONIX IP. This undertaking will have several stages. Stage One: one MWTS is expected to be transported to Japan in order to be tested at site conditions. Stage Two: After the successful completion of site testing, SIONIX will immediately initiate the fabrication and assembly of 29 additional MWTS at locations convenient to the west coast of the U.S. determined by SIONIX. During the course of fabrication and assembly, technicians employed by the joint venture will be assigned to SIONIX for in-depth training in all matters concerning the MWTS and the embedded SIONIX IP. Stage Three: All subsequent administration and installation of the MWTS in Japan will be made through the joint venture.

"The Japanese people affected by these disasters need drinking water as soon as possible as well as treated, recycled water for sanitation. The main concern is also the long lasting effect of radiation in young children. We believe this is a very important humanitarian cause and we are cooperating with public and private agencies in Japan to support their difficult task of recovery," said Katharina Blancato, TII Trading International Inc, CEO. "SIONIX is known to provide the technology necessary to treat contaminated water and the know-how to commission its MWTS quickly and efficiently. We believe that this technology will be proven effective for the present difficult conditions."

Source: Marketwire

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