Hollund Industrial Marine set to open offices at North Cal Wood Products in Ukiah, California; companies explore partnering in Brazilian underwater tree harvesting projects with estimated combined value of US$2B

Wendy Lisney

NEW YORK , November 29, 2012 (Professional Services Close - Up) – Hollund Industrial Marine, Inc. announced that the Company and North Cal Wood Products are exploring the possibility of partnering to establish a Brazilian corporation in anticipation of securing targeted projects within the country.

"Our South American Project Development Team has diligently worked at securing underwater tree harvesting projects at Tucurui and Balbina reservoirs in Brazil," stated Peter Meier, President of Hollund Industrial Marine. "However, in order to secure the concessions and begin operations, one of the requirements is to be incorporated and domiciled within the county."

According to a release, through North Cal, Hollund has identified a potential joint venture candidate with targeted industry experience, as well as government and utility contacts. Once a Brazilian JV is established, Hollund's Development Team, through the 'new co,' will seek to secure harvesting projects at both the Tucurui and Balbina reservoirs; combined projects conservatively estimated at close to $2 Billion; making the partnerships extremely valuable to all parties involved.

The Company, which is set to open its offices at North Cal's headquarters in the upcoming month is continually growing a rapport with the nation's reclaimed woods company. The two companies, already operating under an MOU, are poised to grow their relationship even further should a JV successfully come to fruition in Brazil.

The company noted that North Cal, which currently has an exclusive sales and distribution arrangement with Hollund, anticipates there being tens of millions of cubic meters of timber submerged at the two Brazilian locations. People close to the 30+ year old firm indicate that water wood is the best source for "Green" wood and North Cal is keen on accessing the resource.

Meier continued, "This is the primary catalyst for the possible partnership in Brazil. We have positioned Hollund to not only gain access to waters where these forests are located, but can operate more effectively and efficiently than any competitor. But most importantly, wood millers and distributors like North Cal understand the value of this resource. Luckily for us, North Cal is experienced at retrieving under water wood, is knowledgeable at milling it, and has a readily accessible market in which to distribute it."

Management at both companies are enthusiastic about the progress being made in the working relationship. The current sales and distribution arrangement, the U.S. corporate offices and now the possibility of a partnership in Brazil all speak to the growing dynamic between HIMR and North Cal; which Meier concludes, "We are very excited by the opportunity to partner with North Cal in underwater logging and look forward to growing the relationship."

Headquartered in Blaine, WA, Hollund Industrial Marine Inc. seeks to align the interests of businesses, communities, utilities and governments by offering an integrated business model for underwater forest management.

North Cal Wood Products Inc. is an integrated reclaimed wood products company catering to commercial and residential clients worldwide. Products include solid hardwood flooring, siding, decking, lumber, and custom beams, slabs and millwork.

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