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Aug 1, 2006 12:00 PM

A contract has been signed for the purchase of all the output oil from the first tire processing plant using Mobilestream Oil Inc's patent-pending technology for a minimum of five years.

GTI, an oil and chemical trading company based in Madison NJ, has agreed to purchase all the oil from the operation of the tire plant for at least the first five years of operation. The plant, which will be capable of processing 11 million tires a year, is expected to generate about 286,000 barrels of oil annually. Based upon the current market price of around $75 per barrel for crude oil, the sale of oil should generate an estimated $21.0 million in annual revenues.

The Mobilestream process allows for the cost-effective, environmentally safe recovery of virtually all of the original chemical/mineral materials from scrap tires. Each tire plant can handle 11 million tires a year. Using the Mobilestream process, each 20-lb tire will yield 19.9 pounds of resalable materials. A tire will produce about 8 pounds carbon black, 2 pounds of hydrocarbon gases, 1.2 gallons of oil, and 2 pounds of steel.