Onteco Corporation ONTC, Files Annual Report and Provides Additional Information on $17.2M Valuation

April 18, 2011 - PRLog -- Onteco Corporation , (the “Company”, or “Onteco”), announced today that it has filed its 10-K annual report for 2010 (the “Annual Report”), and that the filing disclosed additional information on the appraisal services report (the “Appraisal Services Report”) from Pellegrino & Associates, (www.pellegrinoandassociates.com), which provided the valuation on the new, patent pending intellectual property of its subsidiary, NexPhase Lighting, Inc. (“NexPhase”). NexPhase is a designer, developer and manufacturer of high efficiency, high quality LED intelligent lighting fixtures.

   “We hope that this additional disclosure helps to clarify how the value of the NexPhase intellectual property was calculated. It is important to note that this valuation is critical to how we perceive and plan subsequent uses of capital by Onteco going forward.”

The Annual Report restated that the Appraisal Services Report, commissioned by Onteco prior to its acquisition of NexPhase, established the value of the new NexPhase intellectual property at about $17,200,000. The Annual Report adds the following key points:

   The valuation model indicates the fair market value of the NexPhase intellectual property at a 90% confidence level is between $6,820,229 and $41,109,593, with a mean value of $19,710,311 and a median value of $17,216,091; and
   Pellegrino & Associates used the statistical median as its expected value, as it removes the impact of improbable outliers. Consequently, based upon a reasonable degree of probability as used within the valuation profession, the fair market value of the NexPhase intellectual property calculates at $17,216,091, using the income approach to value.

“As I have stated previously, this valuation applies to only a few key market applications of the NexPhase patent, leaving aside a breath of other market applications that we plan to pursue. In other words by this limitation, we believe that the Appraisal Services Report significantly understates the overall revenue potential of the NexPhase patent to us,” said Onteco President and CEO, Dror Svorai. “We hope that this additional disclosure helps to clarify how the value of the NexPhase intellectual property was calculated. It is important to note that this valuation is critical to how we perceive and plan subsequent uses of capital by Onteco going forward.” He added, “With 2010 behind us, and our future with NexPhase before us, Onteco in many ways is without doubt a new corporation.”

About Onteco Corporation

Onteco Corporation was founded to develop innovative, practical and cost-effective solutions to some of the most significant environmental challenges facing us today. Additionally, these solutions must show promise of generating significant, ongoing profits for the company. The company determined that one industry that meets these criteria is the Energy Saving Lighting Industry, and as a result acquired NexPhase Lighting, Inc., in February 2011.

Additional information about Onteco Corporation is available at: www.Onteco.com

About NexPhase Lighting, Inc.

NexPhase Lighting, Inc. is a designer and developer of proprietary high quality LED (light-emitting diode) lighting fixtures and control systems for commercial applications. It believes its products will be the lowest cost, highest efficacy fixtures available in the LED Lighting Industry. All NexPhase lighting products incorporate its proprietary “NexSense TechnologyTM”, which provides benefits well beyond the generally acknowledged advantages of all other LED lighting fixtures. NexSense control systems use a unique, “patent pending” wireless protocol, which provides for an unsurpassed reduction in architecture and infrastructure installation cost in commercial applications, as well as significantly reduced maintenance and ongoing operation costs.

For more information about NexPhase Lighting, Inc. visit: http://www.nexphaselighting.com

Safe Harbor Statement:

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.

Contacts

Onteco Corporation
Dror Svorai, President,             305-932-9795

# # #

Virmmac, LLC offers a comprehensive package of services that can be tailored to each company’s precise needs. This modular approach enables our clients to utilize the specific tools we offer on a cost-effective basis.