Poseidon Concepts-Forms Special Committee; Suspends Future

Poseidon Concepts-Forms Special Committee; Suspends Future Dividends
and Announces Board and Managerial Changes 
CALGARY, ALBERTA -- (Marketwire) -- 12/27/12 -- Poseidon Concepts
Corp. (TSX:PSN) (the "Company" or "Poseidon") has established a
Special Committee of the Board of Directors to review and address
various issues arising from the recent write-off of certain accounts
receivable and the evolving business plan of the Company. The Special
Committee's mandate includes the review and assessment of the
Company's business processes and controls. In addition, the Special
Committee will make recommendations to the Board of Directors of
Poseidon regarding further changes including managerial changes that
will strengthen the operations and finance functions of the Company.  
In consideration of the review being conducted by the Special
Committee, the Board of Directors has determined to suspend the
payment of undeclared dividends effective January 16, 2013 until such
time as the Special Committee delivers its report to the Board.
Although the Company hopes that dividend payments will resume upon
completion of the Special Committee review, there is no assurance
about the resumption of dividend payments, or that payments, if
resumed, will be consistent with historical payments. The Board of
Directors will utilize the results of the Special Committee's review
to prioritize the use of the Company's future cash flows from
operations towards future dividend payments, reduction in bank
indebtedness or future capital expenditures. The Board of Directors
is currently reviewing the previously declared dividend payable
January 15th, 2013 to shareholders of record on December 31st, 2012.  
The Company has been diligently addressing its accounts receivable in
recent weeks and is actively pursuing collections, including
commencing formal collection processes in appropriate circumstances.
While a final number cannot yet be determined, the Company may need
to make additional write downs of accounts receivable in future
periods and such write downs may be significant. In accordance with
previously stated policy, the Company will update guidance as
appropriate however in the event that significant additional write
downs of accounts receivable are necessary previously provided
guidance will be negatively affected.  
In recent months, exploration and development activity has slowed
considerably due to weakness in commodity prices and uncertainty in
the financial markets.  
As a result, some oilfield service companies, including Poseidon, are
seeing reductions in realized pricing and contraction in earnings
margins. In the face of reduced oilfield demand and increased market
competition, all operational and cost components of Poseidon's
business are being reviewed to ensure the company's profitability.
Although the business environment has remained weak in the fourth
quarter, Poseidon remains confident in the quality of its products
and in the longer term growth potential in the industry.  
The Company also announces that effective immediately Mr. A. Scott
Dawson will assume the role of Interim President and Chief Executive
Officer, Mr. Michaluk will assume the role of Interim Chief Financial
Officer and Mr. Wiebe will assume the role of Chief Technology
Officer. Messrs. James McKee, Lyle Michaluk and Cliff Wiebe have
resigned from the Board of Directors.  
This news release contains certain forward-looking statements and
other information (collectively "forward-looking information") about
our current expectations, estimates and projections. Forward-looking
information is often identified by words such as "anticipate",
"intend", "believe", "expect", "plan", "forecast", "target", "could",
"focus", "vision", "goal", "proposed", "scheduled", "milestone",
"outlook", "potential", "may", "looking forward to", or similar
expressions and includes, but is not necessarily limited to,
suggestions of future outcomes, including statements about the
Special Committee's review and the nature of its recommendations,
Poseidon's dividend policy and the payment of future dividends,
Poseidon's review of its accounts receivable and the pursuit of
collections, the likelihood and amount of a future write-down of
accounts receivable, results of Poseidon's operations. Readers are
cautioned not to place undue reliance on forward-looking information
as our actual results may differ materially from those expressed or
implied in the forward-looking information. Developing
forward-looking information involves reliance on a number of
assumptions and consideration of certain risks and uncertainties,
some of which are specific to Poseidon and others that apply to the
industry generally. 
The factors or assumptions on which the forward-looking information
is based include without limitation: the outcome of litigation
involving the Company and assumptions inherent in our current
guidance, including: foreign exchange and interest rates; our
projected capital investment levels; the flexibility of capital
spending plans and the associated source of funding; our ability to
generate sufficient cash flow from operations to meet our current and
future obligations; our expectations of the demand for tank systems
and other product offerings and the general activity of the oil and
gas industry; the ability of Poseidon to continue to pay a dividend;
and other risks and uncertainties described from time to time in the
filings we make with securities regulatory authorities. Actual
results could differ materially from those currently anticipated due
to a number of factors, risks and uncertainties. Such risks and
uncertainties include, without limitation, risks associated with the
outcome of litigation involving the company, risks associated with
dependence on manufacturers of the Poseidon tank systems; operating
risk liability; demand for Poseidon's tank systems; levels of
competition in the fracturing fluid storage industry; the ability of
Poseidon to attract and retain clientele; the impact of changes in
marketing initiatives; the ability of Poseidon to fund its ongoing
capital requirements; delays resulting from or inability to obtain
required regulatory approvals; the impact of general economic
conditions in Canada, the United States and globally; industry
conditions; changes in laws and regulations (including the adoption
of new environmental laws and regulations) and changes in how they
are interpreted and enforced; the lack of availability of qualified
personnel or management; fluctuations in foreign exchange or interest
rates; and stock market volatility. Readers are cautioned that the
foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributed to
Poseidon or persons acting on its behalf are expressly qualified in
their entirety by these cautionary statements. Additional information
on the foregoing risks and other factors that could affect Poseidon's
operations and financial results are on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com). Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news
release and Poseidon does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements,
whether as a result of new information future events or otherwise,
except as may be required by applicable securities laws.
NATIONAL Public Relations
Poseidon Concepts Corp.
A. Scott Dawson
Interim President and Chief Executive Officer
(403) 206-4999
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