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EGPI Firecreek, Inc. Receives Term Sheet for Up to Four Million Dollars in Accounts Receivable Financing; Financing Represents Finalization of Contingencies for Southern Atlantic Traffic Corporation Acquisition
Monday, October 12, 2009 9:51 AM


(Source: PrimeNewswire)trackingSCOTTSDALE, Ariz., Oct. 12, 2009 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) (the "Company") is very pleased to announce that they have received a favorable term sheet for accounts receivable financing through Creative Capital Associates for an initial $1,000,000 with provisions for six additional $500,000 increments (based upon availability) for a total of $4,000,000.

This financing represents the last contingency for the Company's acquisition of privately held Southern Atlantic Traffic Corporation ("SATCO") prior to the completion of the final documents. As previously reported, SATCO offers a comprehensive selection of the finest transportation products available. SATCO's products range from traffic signal equipment, traffic & light poles, and data/video systems for ITS (Intelligent Traffic Systems) surveillance systems. SATCO works closely with DOT agencies, local traffic engineers, contractors, and consultants to customize high quality traffic control systems for city, state and federal municipalities. SATCO, who has been in business since 2001 and has several offices throughout the Southeastern United States, reported nearly $15 million in revenues for 2008.

Dennis Alexander, Chairman and CEO of EGPI Firecreek, Inc., stated, "We are very pleased with the term sheet for A/R financing we have received from Creative Capital Associates. Along with the completion of documentation, this financing will finalize the last of the contingencies necessary for the SATCO acquisition to take place. Additionally, we are excited to add SATCO's revenues to our balance sheet on a ProForma basis, and are especially excited with what that will mean to the growth of the Company as well as increased shareholder valuation. This completes our first phase of transition in our business plan which was initiated with the acquisition of M3 Lightning, Inc. Our strategic plan is dependent on organic growth and continuing acquisitions in the DOT and ITS industry. We believe SATCO provides a complete base for both allowing us to meet and exceed our criteria. With the SATCO acquisition, and our most recently announced LOI for the acquisition of a Florida-based traffic lighting company, we can realistically project revenue streams in excess of 30 million dollars a year, along with positive EBIDTA and net earnings per share from operations beginning in 2010." He also stated, "This finance opportunity was made possible through the quick and efficient efforts of Mr. George Dooley, President and CEO of The Small Business Money Store.



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