outhEastern Energy Development, Inc. (SEED) is a New York corporation, organized in 1995, that holds an exclusive sublicense to apply the patents and proprietary technology of Pure Vision Technology, Inc. (PVT), a Denver, Colorado corporation, within the States of North Carolina and South Carolina. SEED also holds a first right of refusal to similarly license the same patents and proprietary technology throughout the southeastern States with the sole exception of the State of Florida. Pure Vision Technology's bioseptic process makes fuel grade ethanol and cogenerated electricity from cellulose waste by the enzyme hydrolysis of cellulose waste and the fermentation of the sugars that are produced by enzyme hydrolysis. We believe that enzyme hydrolysis has the potential to provide one third of our Nation's energy requirements when fully utilized.

SEED has entered into negotiations to acquire control of as much of the United States Department of Energy's Three Rivers Land Fill as will be needed for PVT's $10,000,000 pilot project, to be completed in 2001. The prototype 500-1,000 ton per day plant is planned to be built in Denmark, South Carolina because most of the Three Rivers Land Fill's waste stream is already being transported through or near Denmark en route to the Three Rivers Land Fill. The plant will convert each 500 tons per day of clean cellulose waste into 13,700,000 gallons of fuel grade ethanol per year while producing electricity in excess of the plant's own needs in the amount of 4.8 megawatts or 115 megawatt-hours per day. Different cellulose waste streams will generate varying results with the cleanest waste streams being the most efficiently productive. SEED has arranged for an $85,000,000 private placement to finance both the pilot scale plant and its proposed commercial scale operation. Upon the completion of SEED's private placement, PVT and SEED will merge into SouthEastern Energy Development of South Carolina, Inc., a wholly owned subsidiary of SEED (SEED of SC), then conduct a registered offering of the equity securities of SEED of SC in the first quarter of 2001. The Board of Directors of Pure Vision Techonlogy, consisting of Ed Lehrburger, Carl Lehrburger and Dr. Dick Wilkerson has approved the merger under the condition that SEED's venture capital firm, Capital Resources Financial, Ltd., successfully places the $85,000,000 private placement for the pilot plant and the initial commercial plant. SEED's Board of Directors has approved the merger. As of 12:00 PM on Friday, August 25, 2000 shareholders of SEED, holding 9,239,948 shares or 96.62 percent of the 9,563,276 shares that were eligible to vote, have voted to approve the merger with Pure Vision Technology, Inc. The articles of merger that will be filed in New York, Delaware, Colorado and South Carolina are now being drafted by each Company for the other's review and acceptance.

Pro Forma Earnings Projection

SEED can only estimate its results from proposed operations because the technology is new. No company has ever applied PVT's technology on a commercial scale before now. PVT will be the first company to demonstrate an economically viable and environmentally friendly process for turning cellulose waste into commercially usable fuel. Only bench scale test results are currently available. If the pilot scale tests confirm the laboratory results, SEED believes that the following assumptions will be reasonable:

1. Enzymes will be required in the hydrolysis process at a ratio of one pound per 1,000 pounds of clean cellulose waste;

2. Enzymes presently cost $6.00 per pound when purchased from competing suppliers who manufacture those enzymes for use in other processes;

3. During 1999 PVT made improvements in the enzyme enhancement process that enabled PVT to produce enzymes for less than $1.00 per pound;

4. Assuming that the enzyme production process will require three months of operation in order to produce a sufficient inventory of enzymes for the commercial scale requirements of the proposed Denmark facility, it follows that the Denmark facility will require externally produced enzymes, purchased at a cost of $6.00 per pound for its first three months of cellulose hydrolysis operations;

5. Thereafter, SEED's cost of enzymes applied to the hydrolysis process would be limited to the cost of producing those enzymes using PVT's proprietary technology for less than $1.00 per pound;

6. Assuming that the hydrolysis process consumes 500 tons per day of clean cellulose waste, the annual cost of enzymes to treat that waste, not considering the economies of recapturing enzymes from the end of the process, should be less than $1,000,000;

7. Assume that the 500 ton per day prototype plant will require a staff of 12-15 employees;

8. Assuming that the plant will employ one plant manager at $200,000 per year, two assistant plant managers at $150,000 per year, six technicians at $80,000 per year and three maintenance persons at $40,000 per year, the gross payroll would then be $1,100,000;

9. Budgeting payroll taxes and fringe benefits at 25% of gross salaries, SEED's annual personnel costs at the Savannah River Division would be $1,375,000;

10. Of the 9 counties of the State of South Carolina that are currently dumping their solid waste at the Three Rivers Land Fill, half are already source separating their clean waste from their general waste;

11. SEED has opened negotiations with a major collection firm in SEED's target region to establish a joint venture that can provide SEED with a source of raw material and save the collection firm a significant amount of its tipping fees. Transportation costs are not anticipated to be significant with regard to the direct materials of SEED's process at the proposed location;

12. If the plant costs $45,000,000 to construct and has a useful life of 25 years, $1,800,000 should be budgeted for straight line depreciation;

13. Interest on a declining balance loan of $25,000,000 at 10% per annum would be $2,489,344 in the first year of operation;

14. Assuming that $3,000,000 is budgeted for marketing and distribution, that indirect materials used in relation to the process cost no more than $500,000 per year and that all of the ethanol produced is sold at an average price that is no less than $1.00 per gallon, the pre-tax earnings of the Denmark Division can be expected to meet or exceed $3,500,000 before general and administrative costs.

It should be noted that utilities have not been budgeted as a production cost because the process produces more electricity than the plant requires. At the utility cooperative rate of $60.00 per megawatt hour, the excess electrical power cogeneration represents a minimum ancillary revenue of $2,522,880. Obviously, the spot market presents more handsome opportunities for the sale of available power.

Strategic Alliance

Until recently Pure Vision Technology, Inc. has been related to SEED only as the lessor of technology. With the commencement of SEED's retainer of a venture capital firm for the private placement of a debt-equity package that, if placed, would be sufficient to underwrite Pure Vision's pilot process, the prospect of an even closer relationship between SEED and Pure Vision has been created. Negotiations are presently under discussion with respect to the possible ratios of stock that might be exchanged in a pooling of interests should SEED's financing be successful. No guarantee can be given that the pooling will take place but the matter is being given serious consideration at this time. SEED's venture capitalists have stated that they would look more favorably upon SEED's program were the pooling to take place.

Management Profiles

Mylo EyTina is an attorney at law and a certified public accountant. After incorporating SEED in 1996, Mr. Eytina contracted to serve the Company as its Counsel and Vice President of Finance for a term of ten years in consideration of a ten year stock option contract. In April, 1999 Mr. EyTina was appointed to the position of President of SouthEastern Energy Development, Inc. by a unanimous vote of the Board of Directors. In consideration of Mr. EyTina's additional responsibilities, his stock option contract has been revised accordingly.

Robert M. Smith, Sr., CEO and Secretary

Robert M. Smith, Sr., a former recording industry entrepreneur, is the founder of the Company, having provided substantially all of the starting capital of the Company and having provided the initial corporate contacts that enabled the Company to establish its public-private partnership with the City of Denmark, South Carolina, the location of SEED's headquarters office.

As of 12:01 A.M. on Friday, March 17, 2000 our Self-Issuer exempt offering under Rule 504 of SEC Regulation D has closed. Interested investors must contact an NASD Broker-Dealer in securities to inquire about an over-the-counter purchase from existing investors.

ANNUAL REPORT

Jerry D. Gambrell, CPA of Charleston, South Carolina has completed the field work for the the Company's December 31, 1999 audit. he is currently preparing to issue his final report. When we receive the final audit report, we will post each page on this web site under one or more of the link buttons on the Home page (More about us).
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Marketing Consultants

SEED has reatained the services of International Marketing Organization, Inc. to perform an anaylsis of SEED's resource markets and its wholesale and retail distribution markets. The completed analysis will be a welcome addition to SEED's business plan. A condensed version will be posted as a link to the Home page (More about us). We may expect this analysis within 45 days.

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Shareholder Trading Bulletin Board

At the Present Time the Following Shareholders are offering their shares, acquired during the Rule 504 exempt offering of the common stock of SEED, as follows:

Mylo EyTina, President and Acting Chairman: 6,250 shares at $1.50 per share in units of 100 shares; 5,000 shares at $1.625 per share in units of 100 shares; 5,000 shares at $1.75 per share in units of 100 shares and 40,000 shares at $2.00 per share in units of 1,000 shares.

Purchasers may submit their bids to purchase the Company's shares and get purchase and payment instructions by using the "Email Us" button below. A bid must contain the quantity (in units of 100 shares) and the price at which the bidder wishes to buy the shares, together with the bidder's name, address, telephone number and social security number for registration of the bidder's ownership on the stock records of SEED. In addition, any holder of Rule 504 shares may use the "Email Us" button to post his/her offer to sell on this website via free e-mail. American Express, MasterCard and VISA are accepted in payment for purchases of SEED shares.

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