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Itec Environmental Group, Inc. Receives $2,498,000 Loan Guarantee From California State Department of Conservation, Division of Recycling

Posted on: Thursday, 20 October 2005, 06:00 CDT

Itec Environmental Group, Inc. (OTCBB:ITEC) is pleased to announce today that the California State Department of Conservation, Division of Recycling has issued a conditional loan guarantee commitment to Itec for $2,498,000. This commitment results in Itec receiving nearly 90% of the first loan guarantee funds distributed and 40% of the total available funds.

CA Assembly Bill 28 (Ch. 753, Statutes 2003) authorizes up to $10 million for transfer on a one-time basis by the Department of Conservation to the Beverage Container Recycling Infrastructure Loan Guarantee Account. Funds from this account are continuously appropriated to the Department to issue capital expenditure loan guarantees to provide new recycling infrastructure in California through their Beverage Recycling Infrastructure Loan Guarantee Program.

Gary De Laurentiis, President of Itec, issued several statements about today's news. "This loan guarantee illustrates the State's commitment to develop and deploy new recycling infrastructure. This loan enables us to buy additional equipment necessary to produce finished recycled resin products. The fact that we've received a substantial portion of the first loan guarantee funds distributed, in addition to the $2,000,000 loan from the California Integrated Waste Management Board, further validates our expectations regarding the value of the recycling technology we've developed with our partners."

Mr. De Laurentiis added that "with all the equipment on site and ordered, we are excited about the ramp up next week. Since we anticipate that our facility will be able to start testing the proprietary parts of our system by November 1, 2005, we expect our facility to reach fifty percent capacity by mid-January 2006. We are extremely excited to start demonstrating the technology developed by Itec and Honeywell to international and domestic companies."

As a result of this additional capital, on November 1, 2005, Itec will begin receiving PET and HDPE post-consumer plastics and begin the cleaning process utilizing the Eco2(TM) Environmental System. The Eco2 system uses a patent pending process to clean PET and HDPE post-consumer plastics more efficiently than Itec's competitors, which provides significant benefits to both Itec and its customers.

About the Company

Itec Environmental Group offers solutions to pressing environmental problems faced by public agencies and private entities involved in the recycling of plastics. In a research partnership with Honeywell FM&T, Itec has developed and successfully commercialized a new system for the recycling of plastic containers. Its proprietary Eco2(TM) System costs 30% less to operate, uses no water, removes all contaminates and odors from the finished flake, is closed-loop and thus non-polluting, and produces no toxic by-products.

Please visit our web site at http://www.iteceg.com. Any interested parties wishing to be included in Itec Environmental Group's mailing list, please email your request to info@iteceg.com or Contact: Gary M. De Laurentiis 209-881-3523.

Cautionary Warning Regarding Forward-Looking Statements

This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may,""will,""should,""could,""expects,""plans,""intends,""anticipates,""believes,""estimates,""predicts,""potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to attract and retain key executive officers and the professional advisors necessary to guide us through our corporate restructuring; (4) the successful consummation of the $2,498,000 loan through the California Integrate Waste Management Board; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders, creditors and/or former or current investors; (7) the Company's ability to comply with federal, state and local government regulations; (8) the Company's ability to secure raw plastic and produce and sell a large quantity of its PET and HDPE flake; and (9) other factors over which we have little or no control.

Source: Business Wire

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