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PRESS RELEASE

Facts and Information for the Worlds Media

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PowerConcrete™ Building Technologies Inc. Prepares for IPO Listing on the London Stock Exchange (AIM)

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Alabaster, Alabama, August 2, 2011 --  PowerConcrete™ Building Technologies Inc. (PowerConcrete Inc.) a manufacturer of the PowerConcrete and PowerBoard Building System and official Mandate Holder for global cement supply prepares its listing on the London Stock Exchange, AIM, the most successful growth market in the world.

Following just over 4 years of research and business development, several trademark and patent registrations, product formulation, market research and value creation programs PowerConcrete Inc. in partnership with its sister company 21st Equity Homes Manufacturing Inc. has positioned itself for its first IPO. The planned IPO will be structured by one of the UK's lead underwriters and licensed 'NOMADS' on behalf of PowerConcrete Inc.

Says PowerConcrete Inc. CEO Steve Schurmann: Despite us wishing to retain non-listed status we would have done our national and global license partners and numerous potential investors an injustice through not going the IPO route. Following our companies success experienced and concluding of significant transactions the next logical step was an IPO to spearhead growth and thereby unlocking value for not only the company but our licensees and potential shareholders.

Currently, licenses are awarded on an ad-hoc basis via a formal application, qualification and PowerConcrete Inc. board approval process. As regards to the value of the company this is quickly summed up as follows:

1.) License Fees (per Factory Location) are USD 250,000 or $500,000, which includes turnkey factory establishment and 51% co-ownership via PowerConcrete Inc. factory syndication program, profit share, use of patents, trademarks, know how and technology transfer, a PowerConcrete Inc. website, PowerConcrete Inc. business methodologies and strategic planning, access to PowerConcrete Inc. capital solutions including interest free home loans, access to a full professional team, commodities cement trading opportunities, Master License opportunities throughout Canada, South America and the Caribbean and provinces in country of master licensees with sub-licensees etc.

By only 10 sub-licensees being secured in each country in which a master licensee is located this would equate to USD 500,000 x 10 sub-licensees per country = USD 5 million per country potential. If licensees are appointed in 20 US States then this would equate to a minimum of $ 10 million value (without taking into account any sub-franchisee appointments in each State).

For example, the US State of Alabama and Texas has been taken and secured already, in addition the entire African Continent has already been secured by Master License and Partnership Agreements, plus various other territories are pending license agreements. PowerConcrete Inc. is however going the IPO route thereby affording the marketplace the potential of acquiring shares at a low cost of entry during the rollout and expansion phase.

Essentially, every USA State and every country in South America, Canada and the Caribbean would have a Master License component catered for - this is valued at USD 1,500,000 per country or USD 500,000 per factory location in each US or Canadian State. Do the math's - if only 10 countries are awarded Master licensees at USD 1,500,000 each then this value alone on the balance sheet of PowerConcrete Inc. is USD 15 million (this excludes the value of all the sub-licenses per country) - As regards this value: USD 15 million at a market value of 10% return equates to a value of USD 150 million. Remember, Master Licensees and sub-licensees will ensure the success of their businesses as they would not pay good money just to watch it being lost through lack of effort;

2.) Cement Commodity Trading Opportunities. PowerConcrete Inc. and its sister company 21st Equity Homes Inc. is an official mandate holder with capacity to supply more than 500 million of metric tons of Portland Cement globally. All PowerConcrete Inc. Master Licensees have access, and the ability to, establish commodity trading footprints and companies in each area of operation. If only a small quantity of cement being 300,000 MT per annum is sold per country this would equate to a minimum US$ 1 / MT profit = $300,000 x 10 countries = $3 million per annum profit to PowerConcrete Inc. At a 10% return on investment the value of this small opportunity alone is valued at $30 million - without taking into account the significantly larger volumes required;

3.) Business Co-ownership and Factory Syndication (and co-ownership) opportunities. Currently, all homes manufacturing plants (factories) are co-owned with PowerConcrete Inc. and business co-owners/Joint Venture Partners. Therefore, all profits are shared on a 50/50 basis from each PowerConcrete homes manufacturing plant. If one considers that a medium sized PowerConcrete plant has an annual production capacity of 15,000 to 20,000 low cost affordable Villa in a Box homes per year and could easily generate a profit of only US$ 1,000 per affordable Villa in a Box this would equate to a profit of USD 15,000,000 up to USD 20,000,000 per PowerConcrete plant per annum (based on only 15,000 to 20,000 affordable homes being built at only USD 1,000 profit per affordable home);

4.) Asset Ownership and Balance Sheet Enhancement. All business and factory Co-ownership programs are Co-owned between PowerConcrete Inc. and Business Co-owners / Licensees in each country. Lets be very conservative and say that only 4 PowerConcrete plants per country are provided. Currently, each PowerConcrete plant would be valued at USD 750,000 or USD 3 million per country based on annual production capacity of which PowerConcrete owns assets valued at USD 1.5 million. This excludes participation in all profits and is only the equipment but not the going concern. Or lets be even more conservative: Lets take 10 countries and only 1 PowerConcrete plant in each country. These would work at 75% capacity at least. At 15,000 affordable homes x USD 1,000 profit per factory X 10 factories = US$ 150 million profit x 75% capacity = USD 112,500,000 million profit per annum from only these factories. PowerConcrete Inc. capitalized at 10% return on the USD 112,500,000 million profit per year, is worth USD 1,125,000,000 Billion. NOW, based on a Venture Capital IPO, PowerConcrete Inc. only offers 20% of its stock to raise approx. 200 million USD in the marketplace. This gives PowerConcrete Inc. the cashflow required to expand and build additional PowerConcrete plants in the different countries and other USA States;

5.) Going Concern Co-ownership and Participation in Profits. As per No. 3 above if only USD 15 million profit is generated per PowerConcrete plant at 15,000 affordable homes per year (lets say the plant runs at only 50% capacity which will not be the case as we would not erect a plant where demand does not exist initially for larger production) this would reduce the profits per PowerConcrete plant to USD 7.5 million per year per PowerConcrete plant. At least 1 PowerConcrete plant in each US State or at least 4 PowerConcrete plants in each country, running at 50% capacity (please note that each plant covers a radius of 300 miles) would mean a profit of USD 7,500,000 million to PowerConcrete Inc. per PowerConcrete plant. If this is multiplied by 50 US States then it equates to USD 375,000,000 million per annum. Even if one takes only 35% of this figure then it equates to USD 131,250,000 million per annum profit. At a capitalization rate of turn of even 10% the value of the company based on these low projections would be USD 1,312,250,000 Billion.

Further profits for PowerConcrete™ Inc. (which have not been calculated above) are being realized from:

6.) Direct Sales of PowerConcrete and PowerBoard Panels to other Developers.

7.) Land Owner Joint Ventures via the companies Land Banking Program.

8.) Union, Church, FEMA and HUD Programs offering low cost affordable Homes for their members incl. interest free loans.

9.) Community Development Trust Programs

10.) PowerConcrete Inc. Asset Manager - manages all the PowerConcrete Inc. companies assets globally at an asset management fee of 1.5% of portfolio value. We sign a 5 year asset management contracts with each local PowerConcrete Inc. such as the PowerConcrete Manufacturing Alabama LLC and so on.

Conclusion, the above illustrates the PowerConcrete Inc. potential. At very conservative estimates the various business components each have their own value added opportunity:

  1. Master License Opportunities
  2. Cement supply opportunity due to PowerConcrete Inc. being the official mandate holder
  3. Business Co-ownership & Factory Syndication Programs
  4. Asset ownership and 25 years profit share for Joint Venture Partners & Factory Co-owners
  5. Going concern Co-ownership and participation in profits.

Given the fact that Africa and other territories mentioned above have already been signed up with Master Licensees, together with joint venture agreements concluded and developments coming on stream, this gave enough reason for PowerConcrete Inc. to arrange an AIM listing.

What are restricted Stock Grants and how do you benefit as Licensee of PowerConcrete Inc.?

  • Microsoft Corp. made headlines in 2003 when it switched from granting employees stock options to giving them restricted stock. Generally, a single share of restricted stock is worth as much as three or four options. So companies grant far fewer shares of restricted stock to come up with the same monetary value. That means there is less dilution of the stock. Basically, we issue less stock, which from a shareholder point of view is always a good thing.
  • Stock grants are one of the simplest and most flexible ways to provide employees and/or License Partners a stake in their company. This is often done as a form of bonus compensation to incentivize key License Partners & employees, particularly in early-stage startup companies, to reward License Partners or employees for outstanding performance, or to recognize the importance of a key employee or new hire to the organization. These grants can either be non-restricted or restricted.

Types of stock compensation

  • Stock Options: Gives the recipient the right to buy a certain number of shares in the future at a certain price. Stock options have value only if the stock price rises.
  • Performance-based Stock Awards: Gives the recipient either restricted stock or stock options if the company meets performance goals, such as sales, profit, cash flow, etc. Generally limited to CEO and other top executives.
  • A non-restricted Stock Grant: Is an outright award of stock, usually given to key employees for achieving financial or strategic goals. This award is similar to a traditional cash bonus except that the award is in stock rather than cash. The recipient either restricted stock or stock options if the company meets performance goals, such as sales, profit, cash flow, etc. Generally limited to CEO and other top executives.
  • Restricted Stock: (This is what you receive from PowerConcrete Inc.) This incentive gives you an outright grant of 500,000 to 1,000,000 shares, which vest over time. Whether the stock rises or falls, the shares still have value. A restricted grant is an award that is tied to conditions that you as PowerConcrete Inc. licensee must satisfy. The most common restriction is time-based vesting, which requires you to remain a licensee with the PowerConcrete Inc. for a time period of 5 years before full ownership of all of the shares is transferred. Departure prior to fulfilling the required service will result in the forfeiture of the unvested stock back to the company.

How do you earn money from restricted Stock Grants of PowerConcrete Inc.?

When you join PowerConcrete Inc. as a License Partner and pay your one time license fee of $250,000 up to $500,000 per PowerConcrete Plant and we grant you 500,000 up to 1,000,000 restricted stock certificates, which require that you remain a partner for at least 5 years. When PowerConcrete Inc. is taken public in each local market where a factory has been established, you can cash in your awarded stock grants at anytime. Through this approach all License Partners will further participate through awarded, restricted Stock Grants plus a 51% Profit Share on the earnings of the local PowerConcrete factory.

What are the Tax Implications on restricted & non-restricted Stock Grants?

For stock grants that are non-restricted, the tax implications are straightforward. For the employee, the fair market value (FMV) of the stock at the time it is granted is taxed as ordinary income. The company receives a tax deduction in an equal amount. The company is required to withhold income and employment taxes from the employees pay.

A different set of tax rules applies to restricted stock grants (This is what you receive from PowerConcrete Inc.). The licensee is not required to recognize any income from the grant until the restrictions have lapsed and the stock is no longer subject to a substantial risk of forfeiture (that is, vesting requirements have been satisfied). Only after PowerConcrete Inc. has been listed as a public entity on any recognized Stock Exchange worldwide, at that point the licensee would have to recognize the then-current value of the vested stock as ordinary income.

 

What could be the value of your awarded, restricted Stock Grants of PowerConcrete Inc. after 10 years?

About AIM:

AIM is the London Stock Exchanges international market for smaller growing companies. On AIM you will find a wide range of businesses ranging from young, venture capital-backed start-ups to well-established, mature organizations looking to expand. Since its launch in 1995, over 2,500 companies have joined AIM - raising more than £34bn in the process, both through initial public offerings (IPOs) and further capital raisings. This capital has helped AIM-quoted companies of all kinds to fund their development and pursue their ambitions. Many companies have made the transition to the Exchanges Main Market following their success and positive experience on AIM.

Why AIM is unique?

When the London Stock Exchange created AIM, the objective was to offer smaller companies - from any country and any industry sector - the chance to raise capital on a market with a pragmatic and appropriate approach to regulation. With this in mind, AIM was designed to be a highly flexible public market offering many unique attributes both for companies and investors.

Not an Offer to Purchase or Sell Securities. This overview and press release is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in PowerConcrete Building Technologies Inc. or 21st Equity Homes Manufacturing, Inc., (the “Companies”), and may not be relied upon in connection with the purchase or sale of any security. Interests in Companies, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the Companies on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety.

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PowerConcrete® Building Technologies Inc. - World Leaders in Affordable & Indestructible Building Solutions

ABOUT POWERCONCRETE™ BUILDING TECHNOLOGIES INC.

WHO WE ARE AND WHAT WE DO

WE DELIVER INDESTRUCTIBLE BUILDING SOLUTIONS FOR THE MOST CATASTROPHIC AND RECENT NATURAL DISASTERS OF OUR TIMES. LOCALLY, NATIONALLY, GLOBALLY!

 

PowerConcrete™ Building Technologies Inc. and our sister company 21st Equity Homes Manufacturing Inc. are USA based building and home development solutions manufacturers, as well as official Mandate Holder & supplier of Portland Cement for clients around the world.

We establish turnkey PowerConcrete™ home manufacturing plants worldwide, provide equipment, know-how, training, full backup support to supply (and build) PowerConcrete™ manufactured Villa's-in-a-Box™ or other in a Box series utilizing our cost effective and indestructible PowerConcrete™ and PowerBoard™ building systems.

The company's mission is to educate and teach you that there are indestructible and affordable building solutions for natural disasters: Locally, Nationally, Globally!

In addition to its non-combustible POWERCONCRETE™ and POWERBOARD™ building system, PowerConcrete™ Building Technologies Inc. has further created Capital Solutions to help community members and home owners with INTEREST FREE home loans and creative financing packages regardless of their credit history and regardless of their credit score!

PowerConcrete™ Building Technologies Inc. is a supplier/manufacturer of precast and cast in situ permanent concrete formwork and equipment as well as the only supplier capable of delivering complete production plants for the companies Villa-in-a-Box™ System anywhere in the world. Our Group has superior technology, various patents pending and an industry expertise that has been used in Germany for the last 40 years.

We are able to establish turnkey factory lines for rapid community developments and give you full backup support and training worldwide.

You have goals - We help you reach them.


Forward-Looking Statements

Any statements made in this press release which are not historical facts contain certain forward-looking statements, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the companies operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the companies dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital. Receipt of revenues and other factors, many of which are beyond the control of the company. The Company disclaims any obligation to update information contained in any forward-looking statement.

 
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