GRRO Press Release
Ag Waste Recovery Systems Closes First Round Financing from Iowa Companies and Awarded Funds from Iowa Department of Economic Development
Monday, July 28, 2003
Hog manure solutions company uses new funding for product development
AMES, Iowa July 28, 2003 Ag Waste Recovery Systems, Inc., today announced that it has secured first
round common stock funding. American Republic Insurance Company, Ruan Companies and Principal Financial
Group, all Iowa companies, led the round of financing. Funds raised will be used for development of a
hog manure pilot scale system utilizing an innovative high-powered ultrasonic treatment process and
hydrocyclonic drying technologies. "Raising the first round funding in the state of Iowa clearly
demonstrates that Iowa companies recognize the importance of the hog industry to this state." said
Doug Kostlan, vice president of Ag Waste Recovery Systems. "Securing first round funding allows
AWRS to move forward with product development and demonstrate the system capability on a larger scale."
Ag Waste Recovery Systems also today announced the appointment of Michael T. Kinley as Interim Chief Executive Officer. Mr. Kinley has been involved in agriculture his entire life and has had a particular interest in finding ways to add value to the current agricultural system. He is a former executive of Monsanto Company, and most recently has supported the early stage development of new companies and technologies in the ethanol industry.
IDED helps jumpstart solution to the hog manure problem in Iowa
AMES, Iowa July 21, 2003 Ag Waste Recovery Systems, Inc., today announced that it has received an
award of $150,000 from the Iowa Department of Economic Development's Value Added Agricultural Products
and Process Financial Assistance Program (VAAPFAP). The award will be structured as a loan with
royalty repayments. The funds will be used for development of a hog manure pilot scale system
utilizing an innovative high-powered ultrasonic treatment process.
"Working with the Iowa Department of Economic Development has been very enjoyable. Everyone we have interfaced with has been very supportive of our objective to address the growing hog manure issue." said Doug Kostlan, vice president of Ag Waste Recovery Systems. "They recognized the potential for AWRS to create new jobs and the overall importance of already existing jobs associated with the hog industry in Iowa. With the funds awarded from IDED and funds from investors, we can get to work developing the solution to a growing Iowa concern."
About the Innovative Hog Manure Solution
The AWRS multi-step proprietary process under development is not new. Instead, it is an innovative
combination of technologies that have been in development and service for several years by each of its
partnering companies: Edge Technologies, Inc. (Ames, Iowa); Sheets & Sons Environmental Applications
LLC (Bainbridge Island, Washington); and Global Resource Recovery Organization, Inc. (Bradenton,
Florida).
The process works by routing the animal waste through a chamber which produces high-powered ultrasonic waves, destroying the cell walls of bacteria and pathogens, rendering them inert and virtually odorless. A proprietary additive is then introduced to bind the solids, which when separated and dried from the liquid (water) using the hydrocyclone dryer results in high quality, pathogen-free, nutrient-rich fertilizer which can be marketed in agricultural and retail sectors. Preliminary testing has demonstrated that, because the odor-causing bacteria have been destroyed by the ultrasonic waves, the odor will not return when the fertilizer is rewetted. The separated liquid (water) is further processed and polished resulting in cleansed water that can be reused for agricultural applications or potentially released safely back into the environment. In fact, early testing by the Olfactometry Laboratory at Iowa State University has shown that 97 percent of detectable odor, hydrogen sulfide and ammonia are removed from the dried solids that have undergone treatment with the AWRS system.
Global Resource Recovery Organization (GRRO)
GRRO/USDA $500,000 Farm Pilot Project Coordination, Inc. (FPPC) Project is moving forward with the
completion of the building at GRRO's testing site in Marshalltown, IA. Representatives from the FPPC
will be on site to review construction progress next week. GRRO's Tempest Drying System and ISEP Water
Separator System will be on full display and testing over the next year. In 60 days AWRS's mobile
ultrasonic testing rig will be working intermittently at the same project.
About American Republic Insurance Company
American Republic Insurance Company celebrated its 70th anniversary in 1999. Founded just before the
Great Depression, American Republic has steadily grown in employee and financial strength. More than
600 home office associates and more than 15,000 career sales representatives, managing general agents,
and personal producing agents stand behind the name. American Republic Insurance Company continues its
long-standing tradition of offering a variety of products to help policyholders preserve their financial
security.
About the Principal Financial Group
The Principal Financial GroupÒ (The Principal ®) is a leader in offering businesses,
individuals and institutional clients a wide range of financial products and services, including
retirement and investment services, life and health insurance and mortgage banking through its diverse
family of financial services companies. More employers choose the Principal Financial Group for their
401(k) plans than any other bank, mutual fund, or insurance company in the United States . A member of
the Fortune 500, the Principal Financial Group has $116.3 billion in assets under management and serves
some 13 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United
States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol
PFG. For more information, visit www.principal.com.
About the Ruan Companies
The Ruan Companies were founded in 1932. With roots in Iowa, the Ruan companies represent a variety of
activities in financial services, transportation services, commercial real estate and philanthropic
interests. The primary companies that make up Ruan are Bankers Trust Company; Iowa Export Import Trading
company; Ruan Securities; Ruan Transportation Management Systems; Avis Rent a Car, Des Moines; Ruan Center
Corporation and City Center Development. The Ruan Family is also the sponsor of the World Food Prize.
About Ag Waste Recovery Systems
Ag Waste Recovery Systems, Inc. was formed in 2003 as a C-Corporation. The company was founded based on
the need for an environmentally-friendly hog manure treatment and drying solution that eliminates the
environmental liability problems associated with Concentrated Animal Feeding Operations (CAFOs). Ag
Waste Recovery Systems can be reached at 515-296-8030 or www.awrs.com.