RDX Technologies Announces Industrial Franchising Program

SCOTTSDALE, AZ, Dec. 18, 2013 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE: RL7) a technology driven company operating in the waste water industry, today announced the launch of its Industrial Franchising Program for waste water owners and operators in the United States.

RDX Technologies Corporation announces the launch of its Industrial Franchising opportunity in the United States, which provides an opportunity to own and operate RDX equipment and systems, for qualified owners and operators of waste water collection or treatment plants in the U.S.. The Industrial Franchise opportunity will also be made available to waste water generators that produce in excess of 10,000 gallons per day of industrial process or waste water.

The Company has been developing a beta testing program since July of this year, concentrating on the Company's waste water mining operations. Water mining operations produce materials that can be converted to fuel, and then delivered to RDX energy customers. The Company will be highly focused in developing franchises within the waste water industry that center on interceptor, food processing and packaging, slaughter operations; as well as franchise areas where water recycling has developed above normal economic value for the Company, including oil and gas operations where water is not only to be treated, but then sold for reuse. Each location, (operation) will be sold and licensed separately.

The Company has hired legal counsel that specializes in franchise regulations to guide the Company through registrations and franchising regulations.

RDX has been in confidential discussions with potential franchise operators since July of this year, and conducted a "beta" test sale in the second fiscal quarter of this year. Franchise location and planning in Virginia, North Carolina, South Carolina, Georgia and Florida are well developed at this time. In addition, the Company has chosen to concentrate initial locations at or near RDX energy customers, currently located in Virginia, South Carolina Texas, and Florida. Priority is given to locations that are currently operating waste water facilities, and companies that operate waste water pumping fleets.

Franchise costs and operating expenses can vary greatly from location to location, and are based on population, transportation costs, labor costs and regulations. The Company estimates that most Industrial Franchises will be contracted between $ 740 thousand to $ 2.2 million dollars per location. The average facility size offered by RDX will be 25,000 to 250,000 Gallons per day of treated waste water.

The Company has developed a back log of nearly $ 9MM, for five beta locations, in the Western U.S., which operating equipment is expected to be completed and delivered this year. To date, the Company is giving guidance of 26 location openings for calendar year 2014. Commitments for locations in 2014 are expected to increase, but factors such as regulatory filings, securing locations, and meeting local water discharge regulations may delay specific sites as those sites are developed. The beta locations include a mix of currently operating waste water plants and new locations. The first beta group locations are not franchised, but straight sales of operating equipment, under license agreement. The beta operating locations for the current quarter are currently serving approximately 600 waste water generators.

Franchise locations will be developed but not sold until all Federal and State required disclosures are completed, and filed as required by law. The Company expects to have completed registration requirements no later than mid-February of next year. Certain States with complex registration requirements may exceed the February timeframe.

The Company has set a specific goal of opening 300 Industrial Franchise locations (including the five beta locations announced today) through the end of the 2016 calendar year. The Company wide goal is based on the Company's estimation of the growth of energy customers and current high demand for RDX methyl ester based liquid fuels. The Company sees substantial growth opportunities in 2014 and beyond in areas not served by pipeline or compressed natural gas or in temporary and transient power and heat delivery installations.

As locations are developed and sold, the franchisee and operator will be announced, but specific locations will not be made public until after real estate and permitting efforts are completed by the franchisee and operator. The Company has also developed franchise locations on RDX energy consumer locations and those will be announced as sold, but not before specific permitting by location is completed.

RDX has entered into developmental agreements for two large municipal water treatment facilities; one located in Suffolk County, New York, and one in Odessa, Texas. These municipality locations are not a part of the Industrial Franchise program at this time. Currently, municipal locations are owned and operated directly by RDX, due to the substantial waster volumes and operating conditions at these plants.

All RDX franchisees and operators are required to be licensed or permitted in the jurisdiction in which they will be operating. RDX will begin Level I waste water operator training in Scottsdale, Arizona and Deaver Wyoming starting in January and June of 2014 respectively. RDX training will center on best practices, and specific operation of RDX technology as permitted and licensed in the United States. The program is taught in on campus segments lasting from three to ten days. Initial training for operators is eighteen days of classroom and in practice training. The entire Level I course package takes one year to complete.

The Company would also like to announce at this time the promotion of Douglas C. Bean to Vice President of Business Development, as of January 1^st, 2014. Mr. Bean is currently an interim Business Manager for the Company's Ridgeline Energy USA Division, and has been employed with the Company for about three years. Doug began his RDX career in developing waste water customers on a direct basis for the Company's Western U.S. Division. Doug will be responsible for the development of the Industrial Franchise sales team in North America and delivery of effluent material for liquid fuel refining to the RDX Energy Division. Mr. Bean will also head the Company's regional and national account efforts in specific development areas such as food processing and waste water interceptor customers.

Dennis M. Danzik, RDX CEO stated; "I would also like to specifically acknowledge Doug Bean for his dedicated service and well deserved promotion. I have had the privilege of working with Doug for nearly twenty years and he consistently delivers on a variety of managerial levels. I also want to take the time to acknowledge Scott Havrisik, our VP of Business Development and Bob Everett, Manager of our Energy Division for a year of very hard work that has produced a who's who of energy customers for RDX during the past year, the year ahead and future years."

"This announcement concludes nearly a year's work in developing a program that was kept highly confidential. A program that would not only launch RDX to the next level in the waste water industry, but allow RDX the opportunity take full advantage of our first to market efforts in commanding development of waste water resources where energy is the by-product. In our second quarter this year, we conducted a sale and our system under license as a beta test to develop a structure for our Industrial Franchise Program. I am pleased to report that the effort is successful and taking shape. Our designs and manufactured equipment are robust, permitted in multiple jurisdictions, and operating very well. The RDX focus is water, our product is liquid fuels. Our job is now scale and from that; shipped and billed goods and services. Our management team here at RDX is very pleased with the past year and how our team has remained focused, concentrated on consistency, reduced costs, and positioning the Company for our financial growth in 2014."

A complete business presentation and several videos will be available on the Industrial Franchise Program on the Company's website at www.rdxh2o.com over the next several weeks.

The Company will host a business update conference call on Thursday, December 19^th at 11:00 a.m. Eastern Time.

Interested parties can access the conference call by dialing (877)-407-8133 for U.S. callers or (201)-689-8040 for international callers, or listen via a live Internet webcast on the Company's website at www.rdxh2o.com.

A teleconference replay of the conference call will be available approximately one hour following the call, through midnight Thursday, January 2, 2013, and can be accessed by dialing (877)-660-6853 (U.S. callers) or 201-612-7415 (international callers) and entering conference ID: 13573078. A webcast replay of the conference call will be accessible on the Company's website at http://www.rdxh2o.com/ for 90 days.

ON BEHALF OF RDX TECHNOLOGIES CORPORATION

"Dennis M. Danzik"
Dennis M. Danzik, CEO
[email protected]

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

SOURCE: RDX Technologies Corporation

David Waldman at Crescendo Communications
Investor Relations
[phone]
[email protected]