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Servidyne (SERV) Announces Its Largest Energy Savings Contract to Date

Mar. 29, 2010 (Business Wire) — SERVIDYNE, INC. (Nasdaq: SERV), an energy efficiency and demand response company, today reported that it has entered into a contract with a major U.S. retailer to dramatically improve the energy efficiency of approximately 600 of its stores and distribution centers. The agreement has an estimated total revenue value of $8.7 million for project work that should begin almost immediately and be completed over the next 12-24 months.

Both companies expect their new strategic partnership will continue beyond the term of this initial agreement for an additional two to three years, in a comprehensive effort by the customer to expand this energy efficiency program to all of its existing stores, as well as its new locations and its franchisees. Terms of any such future work have not been negotiated.

“Servidyne developed this program in conjunction with our customer over the past 18 months, through a series of pilot demonstration projects and initial installations,” noted Todd Jarvis, President and CEO of Servidyne’s Building Performance Efficiency (BPE) Segment. “We estimate that this initial investment by our customer will yield its shareholders a return on invested capital in excess of 40 percent.”

Servidyne’s work to be completed under the agreement consists of lighting efficiency upgrades and installation of new controls that will automate the scheduling and operation of the retailer’s heating and cooling equipment. The new controls system and related software will provide the customer with a robust information dashboard that will detail energy consumption and operating conditions on a near real-time basis. Servidyne will also help each of the customer’s 600 facilities take advantage of any special financial incentives that may be offered by their respective electric utility providers, and utilize the new controls systems being installed to enable the retailer to benefit from other potential value streams, including utility-sponsored demand response programs. Servidyne will also track the resulting reductions in greenhouse gas emissions and calculate other environmental benefits as part of this contract.

“Servidyne currently is involved in similar pilot demonstration projects for other major customers, including manufacturers and retailers,” added Alan R. Abrams, Servidyne’s Chairman, President and Chief Executive Officer. “We hope to be able to expand those efforts into other large scale implementation programs in the future as well.”

About Servidyne

Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates globally through its wholly–owned subsidiaries. The Company provides comprehensive energy efficiency and demand response solutions, sustainability programs, and other products and services that significantly enhance the operating and financial performance of existing buildings. Servidyne enables its customers to cut energy consumption and realize immediate cost savings across their portfolios, while reducing greenhouse gas emissions and improving the comfort and satisfaction of their buildings’ occupants. The Company serves a broad range of markets in the United States and internationally, including owners and operators of corporate, commercial office, hospitality, gaming, retail, light industrial, distribution, healthcare, government, multi-family and education facilities, as well as energy services companies and public and private utilities. Servidyne also owns commercial income-producing properties in the Southeast. For more information, please visit www.servidyne.com or call 770-953-0304.

Certain statements contained or incorporated by reference in this press release, including without limitation, statements containing the words “believe,” “anticipate,” “estimate,” “expect,” “plan,” “project,” “forecast,” “should,” and words of similar import, are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements in this release include statements regarding the following matters: the Company’s expectations of starting its project work under the contract almost immediately and completing its work over the next twelve to twenty-four months; the expectation that the new strategic partnership between Servidyne and its customer will continue for an additional two to three years beyond the term of the initial contract, in a comprehensive effort by the customer to expand the energy efficiency program to all of its existing stores, as well as its new locations and its franchisees; the Company’s estimate that the customer’s investment will yield a return on investment in excess of 40%; and the Company’s hope of expanding other similar pilot demonstration programs for other major customers into large scale implementation programs in the near future. Forward-looking statements involve known and unknown risks, uncertainties and other matters which may cause the actual results, performance, or achievements of Servidyne, Inc. to be materially different from any future results, performance, or uncertainties expressed or implied by such forward-looking statements. Factors affecting forward-looking statements in this release include, without limitation, the factors identified under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended April 30, 2009, as updated from time to time in the Company’s Quarterly Reports on Form 10-Q. Servidyne, Inc. does not undertake to update these forward-looking statements.

Monday, March 29th, 2010 Uncategorized
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