Hawks Announces That the June 10, 1999 Proxy Comments Have Been Received by the Securities Exchange Commission

Business Wire, Dec 22, 1999

Business Editors

CASPER, Wyo.--(BUSINESS WIRE)--Dec. 22, 1999

Hawks Industries, Inc. (NASDAQ: HAWK) today the Chairman of the Board of Directors of Hawks Industries, Inc. ("Hawks"), Bruce A. Hinchey, announced that Securities Exchange Commission Shareholder Proxy comments for the June 10, 1999 Agreement with Universal Equities Ltd., David H. Peipers, The Cornerhouse Limited Partnership and the Winsome Limited Partnership (collectively referred to as "Purchasers") have been received.

The June 10, 1999 Agreement would allow the Purchasers to secure a controlling interest in Hawks through a private placement. Hawks and the Purchasers are cooperatively working to furnish the SEC with requested information on the transaction and anticipate completing the SEC requirements and holding its Annual Meeting for shareholder approval of the transaction in the Spring of 2000.

The value placed on Hawks' shares in the June 10, 1999 Agreement was $1.60 per share for at least 6,250,000 shares of common stock yielding the Company a consideration of $10,000,000. The offer also included the right for Purchasers to buy an additional 14,375,000 shares at the same price. The maximum consideration to be received by Hawks is $33,000,000 if all the additional shares are purchased. Details of the June 10, 1999 Agreement have been filed with the SEC in an 8-K Report and are available for public review.

In futherance of their plans for expansion of Hawk's involvement in natural resource energy, the Purchasers have contracted for the services of Dr. Nicholas E. Vanderborgh, a twenty-five year veteran of the U.S. Government's facilities in Los Alamos, New Mexico, who has been a project and team leader for the U.S. Department of Energy. Upon completion of the June 10, 1999 transaction, the purchasers intend to nominate and support the election of Mr. Vanderborgh as President of Hawks.

The Purchasers' plans for Hawks include the utilization of sustainable development technologies including, in the case of gas properties, co-generation, i.e. the use of natural gas to produce low sulfur fuel, electricity, water and food. The Purchasers have advised Hawks that they are engaged in discussions with representatives of several foreign nations for the joint use of those technologies for development of the nations' natural gas resources.

At the present time, no firm commitments have been made by any parties.

Hawks Industries, Inc., through its main operating subsidiary Western Environmental Services and Testing Inc., is engaged in assisting industrial, commercial and government organizations in environmental testing and environmental services. Hawks Industries, Inc., also invests in oil and gas producing companies. Since 1978, the company has developed cost-effective, quality products which provide accurate and precise results to help its clients comply with environmental regulations.

Statements about the Company's future expectations, including future revenues and earnings, and all other financial statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Act of 1955. The company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.