Pioneering Technology Corporate Update

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

Pioneering Exceeds its 2010 Business Objectives

MISSISSAUGA, ON, Dec. 17 /CNW/ - Pioneering Technology Corp. of Mississauga, Ontario (TSX-V: PTE), ("Pioneering" or "the Corporation"), an energy smart product innovation and consumer goods company closed its 2010 fiscal year on September 30th, 2010.

The Corporation's 2010 audited financial statements are to be reported on January 29, 2011. In the interim, having completed its preliminary audit the Corporation offers the following highlights from Fiscal Year 2010:

Financial Highlights:
The Corporation is now pleased to announce that it successfully achieved its three major financial milestones for 2010:

  • exceeded its objective of doubling revenue. Year over year revenue grew approximately 110% to $2.9 million for the year ended September 30, 2010 from $1.37 million in fiscal 2009;
  • achieved its goal of becoming a profitable business in 2010, increasing operating income by more than $600K versus the 2009 fiscal year; and
  • commercialized and launched a new product, the Safe-T-sensor for microwave ovens, selling out its first two production runs. Pioneering received recognition and credibility for this new product in the form of a $300,000 grant to Ohio University from the U.S. Department of Homeland Security.

Business Highlights:

  • Safe-T-element®
    At present, growth is coming from Pioneering's patented Safe-T-element cooking system, the only technology of its kind engineered to prevent the number one cause of household fire - stovetop cooking. Pioneering experienced significant growth in all targeted commercial multi-residential channels (low income, senior's, university and military housing) in 2010. The Safe-T-element cooking system is now installed on tens of thousands of stoves around the globe and given that there has never been a cooking fire on a Safe-T-element equipped stove the products reputation and its sales and distribution pipeline is growing rapidly.
  • Safe-T-sensor™
    Pioneering's new patent pending Safe-T-sensor™ technology for microwave ovens was engineered to prevent microwave fires, but more importantly the false alarms which result in building evacuations, expensive/dangerous fire department nuisance responses and tenant apathy in responding to alarms. This product is receiving significant interest (trial and purchase) within existing Safe-T-element channels. And while the Safe-T-element technology is not yet available at consumer retail, the Safe-T-sensor will be taken to retail channels in 2011.
  • Market Opportunity
    The reason these products are now enjoying success and have significant long term potential can be attributed to the magnitude of the problem, the size of the markets and the proprietary nature of the products.

The Problem: Cooking fires and false alarms are caused by two primary sources - stovetops and microwave ovens. The National Fire Protection Association recently reported that there are 150,200 reported cooking related fires each year resulting in 500 deaths, 4,660 injuries and $756 million in direct property damage. In addition, the Consumer Product Safety Commission adds that there are a further 4.7 million unreported cooking fires resulting in an additional 102,000 injuries which the Home Safety Council states results in billions of dollars in additional indirect costs.

Market Potential: Everyone has experienced a stove fire (or knows someone who has) but these products are most relevant to populations that are most vulnerable. These are very large housing market segments (i.e. in the US alone there are approximately 1.4 million military housing units, 18 million college students, approximately 40 million seniors over the age of 65 and growing, over 4 million government subsidized affordable housing units and approximately 35 million rental properties). In the US over 60% of the population cooks with electricity and household penetration for stoves and microwaves is near 100%.

Market Solution: With both the Safe-T-element and the Safe-T-sensor, Pioneering offers a combination of products to multi-residential housing providers that help prevent these cooking fires and false alarms protecting citizens, properties and saving tax payer dollars.

Pioneering CEO Kevin Callahan said of these preliminary results: "We are very pleased with what we have been able to achieve in 2010. Our significant growth since fiscal 2008 is a tribute to a lot of hard work by our immediate and extended team, but more importantly reflects the growing recognition these products are receiving from fire safety, housing and legislative champions throughout North America because of the significant impact they have on saving lives, energy and money."

About Pioneering Technology Corporation:
Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. The patented Safe-T-element® cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. The patent pending Safe-T-sensor is designed to detect burning conditions in microwave ovens shutting it off before it causes a fire or triggers a fire alarm. Pioneering trademarks include Safe-T-element®, Safe-T-Sensor™, Powergrill™, Battery Eliminator®, Powerpak™ and the Hydro-free Furnace Fan™. For more information visit: www.pioneeringtech.com.

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Company's target markets, the demand for the Company's products, the availability of funding, the efficacy of the Company's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

SOURCE PIONEERING TECHNOLOGY CORP.

For further information: For further information:

Kevin Callahan, President & CEO at (905) 712-2061 ext. 222

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PIONEERING TECHNOLOGY CORP.

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