Watson General signs investment agreement to raise approximately $2 million

Business Wire, Feb 1, 1995

IRVINE, Calif.--(BUSINESS WIRE)--Feb. 1, 1995--Watson General Corp. (NASDAQ:WGEN) Wednesday reported that it has entered into an Investment Agreement to sell 1 million shares of common stock in a private placement to a foreign investor.

The stock will be sold in three tranches over the next 90 days. The company Wednesday sold and closed the first tranch for 333,334 shares.

Ronald G. Crane, Watson president & CEO stated: "Our strategic plan to maximize the company's position in the underground storage tank monitoring market is progressing. This planned infusion of capital will permit us to continue our successful marketing campaign, as well as to expand our software interfaces and functionality. The funding will also improve the company's balance sheet position with respect to our market listing qualifications."

The Environmental Protection Agency (EPA) estimates there are 2 million USTs in the United States, with at least 25 percent experiencing leakage, and has mandated that all petroleum USTs have an approved monitoring system in place by 1998.

By that year, depending upon the age of individual tanks, owners of USTs are required to monitor their tanks for leaks, and in the event of a leak, to immediately notify the responsible government agency of the leak.

Watson General is an emerging leader in environmental services. The company has the only recognized central station -- remote monitoring software, TankControl, for underground storage tanks (USTs) that can monitor multiple sites with diverse tank hardware installed -- a universal link. At Jan. 1, 1995, more than 4,300 USTs were being monitored using TankControl.

The software tracks information ranging from tank levels to alarm conditions. Distributors of the software include Tidel Engineering, Emco-Wheaton and Schlumberger Technologies. Watson's expertise and strategic alliances place it at the forefront of the environmental services industry. The company also provides environmental consulting, site remediation and construction management services.

CONTACT: Watson General Corp., Irvine

Ron Crane/Joe Christoffel, 714/727-4020

or

Russell Communications

Bruce Russell, 310/216-1414