EDMONTON, July 28 /CNW/ - Seair Inc. (SDS:TSX Venture Exchange) today released its unaudited financial statements for the quarter and nine months ending May 31, 2008.

Revenue for the quarter ending May 31, 2008 was $783,121, or 11% higher than in the corresponding quarter in fiscal 2007 and 67% lower than the immediately preceding quarter. Rental revenue from Septic's portable waste water treatment units provided approximately 89% of total revenue in the quarter. The revenue increase relative to fiscal 2007 is a result of Seair's expanded fleet of portable waste water treatment units and the decline from the quarter ending February 29, 2008 is due to the normal seasonal shut-down in the western Canadian oil and gas sector, upon which Seair Septic relies for the vast majority of its revenue. The impact of the larger fleet is partially offset by decreased rental day rates for the portable waste water treatment business. Fiscal 2008 day rates were approximately 25% lower than the rates realized in fiscal 2007.

Seair continues to conduct business development activities in a variety of end-use applications other than portable waste water treatment. Priority markets include municipal water and waste treatment, golf course soil and water treatment, food processing and aeration pond treatment at pulp and paper mills and similar manufacturing facilities. The municipal treatment and aeration pond applications are being handled directly by Seair whereas the golf course and food processing initiatives are generally being addressed through third party distributors.

Complete turnkey municipal water and waste treatment uses essentially the same technologies and processes as used in Septic's portable units, although on a much larger scale. In addition, Seair's products can be used at various stages of existing conventional municipal waste water treatment to increase the effectiveness of the overall process. Research and development studies are underway to prove the effectiveness and economic viability of Seair's various means to augment conventional municipal systems. However, penetrating the municipal treatment market, either with full Seair systems or selectively enhancing existing conventional treatment plants, will require additional third party verification of the sustained effectiveness and unique capabilities of Seair's solutions.

Construction has begun on a turn-key end-to-end Seair wastewater treatment plant at the Village at Wolf Creek. As of the date of this document Seair has completed and progress billed approximately 10% of the project work, with most of the remaining work slated for fall 2008.

A Seair diffusion unit was installed in Airdrie, Alberta in spring 2008 to dissolve pure oxygen into the wastewater stream as it enters the 18 kilometer force main to Calgary's municipal wastewater treatment system. This unit is part of a new lift station in Airdrie that was scheduled to commence operations in May 2008 but start-up has been delayed for reasons not connected to Seair's unit. Start-up is now scheduled for August 2008. The objective in diffusing pure oxygen into the wastewater stream is to reduce H(2)S levels, eliminate the need for other chemical treatment and enable an aerobic state in the force main as the wastewater travels to Calgary for further treatment.

Aeration pond applications involve larger-scale Seair diffusion towers to better and more efficiently manage the dissolved oxygen level in large industrial-use ponds. The objective is to displace large inefficient blowers with Seair units that achieve superior end results with reduced operating costs, including energy consumption and maintenance.