BERLIN, Feb. 4, 2004 (PRIMEZONE) -- Advanced Technology Industries, Inc. (OTCBB:AVDI) ("ATI") today issued a corporate update with respect to certain information regarding ATI and ATI's proposed combination with LTDnetwork, Inc. ("LTDN").
In a separate press release issued today, ATI announced that it expects to complete its proposed combination with LTDN during the first quarter of 2004. As contemplated by the Agreement and Plan of Merger with LTDN, at the time of the merger, ATI expects that at least 71.5% of the liabilities that existed on ATI's balance sheet as of March 31, 2003 will be converted into equity, cancelled or extinguished.
In addition to reducing its liabilities, ATI has also been focusing on reducing its overall cost structure. Through effective streamlining of operations and certain restructuring steps, ATI estimates that its overall corporate overhead (excluding merger related costs) in the first quarter of 2004 will be reduced by more than 50% when compared to the same period in the previous year. As part of ATI's cost reduction efforts, combined with ATI's focus on licensing its intellectual property relating to the consumer products market, and post-merger the consumer software market, ATI does not anticipate expending any further significant amounts on its Russian based and nuclear focused operations. As previously disclosed, ATI plans to reorganize these operations into an entity 49% owned by certain managers of ATI, who will not be part of ATI's management team following the merger, and 51% owned by ATI.
ATI is currently in negotiations with certain packaging and consumer products companies with respect to the licensing of its intellectual property. As a result of these negotiations and the merger with LTDN, ATI expects to begin generating revenue in the second quarter of 2004. ATI also expects to become cashflow positive in the fourth quarter of 2004.
Following the merger, ATI plans to close its Berlin office and relocate its headquarters to New York City. In addition, it is anticipated that following the merger, a new board of directors of ATI will be named and the current management of LTDN will assume management positions at ATI. It is expected that such new management will assemble a skilled U.S. based marketing team that will begin implementing its marketing plans shortly following the merger. Such marketing team, together with the in-house media resources of LTDN, is expected to launch a public relations campaign to publicize the combined companies' highly innovative products.
About Advanced Technology Industries Inc.
Advanced Technology Industries, Inc. is a company devoted to the identification and acquisition of, as well as the research and development of, technologies leading to the commercialization of innovative products, including proprietary technologies.
About LTDnetwork, Inc.
LTDnetwork, Inc. operates over 350 specialty e-commerce sites and has developed a range of cutting-edge proprietary software products that is designed to facilitate and enhance the purchasing experience of both its own customers and those of leading Internet companies that will utilize the products under joint venture or licensing arrangements.
Cautionary Statement Regarding Forward Looking Statements
The above press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. These statements are based on management's current expectations and such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of ATI, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. These risks and uncertainties include, among others: ATI's ability to consummate the merger with LTDN and to achieve expected synergies and operating efficiencies in the merger within the expected time frames or at all; the costs related to the merger; whether ATI can successfully commercialize its products and the products of LTDN; whether ATI is able to acquire new, marketable technologies; whether others develop products or services that are more readily acceptable than, or compete with, the products or services ATI currently offers or intends to offer; political turmoil or changes in government policies in the countries in which ATI does business; changes in regulations or laws that adversely impact ATI's ability to undertake the management of nuclear waste clean-up projects; and other economic, business, competitive and/or competitive factors affecting ATI's and LTDN's businesses generally. ATI assumes no obligation to (and expressly disclaims any such obligation to) update the information contained in this press release, whether as a result of new information, future events or otherwise.