Knobias ClipReport (7-23-2007)

Submitted from Knobias ClipReport

Catalyx Fluid Solutions, a division of RG Global Lifestyles, Inc. (RGBL), recently signed a five-year contract with a top 30 U.S. natural gas production company. RG Global will construct and operate a water treatment plant employing RG Global's proprietary ion exchange technology that will remove contaminants from the produced water associated with coal bed methane production. The project will be implemented in three phases, each phase generating $6.8-7.0 million over five years. The first phase is expected to be operational in seven to eight months, with all three phases expected to be completed within 18 months, resulting in a total revenue stream of $20-22 million over the length of the contract.

The Catalyx(R) patented ion exchange technology enables removal of sodium, barium, iron and other inorganic contaminants that can pose an environmental threat from coal bed methane-produced water for significantly less cost per barrel than the prevailing industry rates.

Mr. Juzer Jangbarwala, Chief Technology Officer of RG Global Lifestyles, told Knobias on Friday, "It is not rocket science to remove sodium from water. The critical factor is developing a process that produces the smallest, most concentrated waste stream, preferably in a reusable form. Our Catalyx technology produces 90% less waste than conventional treatment systems, and 60-70% less waste than our competitors who claim low waste technologies."

"Catalyx's lower cost makes it economically feasible to ramp up production of this plentiful form of clean-burning energy. Our sodium removal capability and low cost could be critical factors in restarting the coal bed methane operations idled in multiple states due to environmental reasons."

"The treated water will be totally safe for irrigation and wildlife with no hazardous by product. Competing low waste systems produce sodium chloride (NaCl) with high levels of acid, which has to first be neutralized, then disposed of as brine, since the reuse value of NaCl is low. Our highly concentrated waste stream of sodium sulphate can be used for many industrial applications. These factors enable us to offer a much more environmentally friendly process at a fraction of the cost."

In March 2007, the Company entered into an agreement for the construction, sale and support of a plant utilizing its Catalyx Fluid Solutions Technology with Black Diamond Energy. On June 22, 2007, the Company entered into an agreement with Yates Petroleum Corporation in which Catalyx Fluid Solutions will construct, own and operate a plant using the CFS Technology and charge a royalty on a per barrel basis of reclaimed water.

"Our contracts with Yates and Black Diamond are just the tip of the iceberg for the coal bed methane wastewater treatment industry. The U.S. market is in its infancy, and recent government mandates in China and other countries indicate that coal bed methane production and the need to treat the produced water will dramatically increase. RG Global is well positioned to serve the coal bed methane markets worldwide."

RG Global Lifestyles also develops and markets technologies for water purification. Aquair(TM) atmospheric water generators produce purified water from air. This solution provides drinking water for military troops, disaster and drought-stricken areas and situations where drinkable water isn't easily accessible. As of April 2007, the Company had sold limited amounts of units to customers in the U.S. and Asia, but it anticipates further sales to those regions and Australia.

In addition, the Company distributes OC Energy(TM) brand energy drinks with natural vitamins and low sugar levels to intensify alertness without the typical crash. The drinks are marketed directly to retail stores and through a network of regional and national distributors domestically, and to international distributors.

For the fiscal year ended March 31, 2007, the Company reported revenues of $89,000 versus $69,000 in 2006. The loss per share was $1.21 versus a loss per share of $0.07 in 2006. The Company's accumulated deficit was $25.7 million and cash on hand was $502,000. The 2007 operations were funded through the issuance of $2.6 million in notes payable under various terms.


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