General Environmental Management, Inc. (GEVI.OB) Strategically Sells GEM MTS; Strengthens Balance Sheet

In the company’s news today,

General Environmental Management, Inc. announced that it has sold the stock of its GEM Mobile Treatment Services, Inc. (GEM MTS) unit to MTS Acquisition Company, Inc. According to the press release, GEM MTS will function independently with a seamless transitory period.

In exchange, GEM received promissory notes in the aggregate amount of $5.6 million, the assumption by GEM MTS of approximately $1.0 million of accounts payable as well as future royalties. In an effort to reduce liabilities and thus strengthen the balance sheet, the company has immediately assigned the consideration to CVC California, LLC, GEM’s senior secured lender.

Tim Koziol, CEO of General Environmental Management, stated, “By substantially reducing our requirement to service our debt, we have increased our ability to take advantage of other opportunities. The sale of GEM MTS will also allow us to concentrate our focus on extracting the greatest value from resources we employ in the current economic environment.”

Mr. Koziol added, “We are very pleased with the transaction that has taken place, as well as the sale price. Since our acquisition of GEM MTS in March of 2006, the unit has experienced tremendous growth under our leadership and we are very happy with the return on investment. However, as market dynamics change, we are adapting and will use our resources to best pursue GEM’s long-term goals.”

About QualityStocks

QualityStocks, based in Scottsdale, Arizona is a free service that collects data from hundreds Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their advertising efforts and now has over 750,000+ subscribers that receive The Daily Stock Newsletters.

Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net 

Forward-Looking Statement:

This release may contain 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, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.