TUCSON, Ariz., June 9, 2004 (PRIMEZONE) -- Environmental Technologies, Inc. (OTC:EMTI) has received numerous requests from shareholders for clarification regarding the Company's announcement, on June 7, 2004, that its Board of Directors "has voted to declare a dividend as it reorganizes its corporate structure with a view to maximize its growth potential and enhance shareholder value."
Management and the Board of Directors believes that its leading-edge Finder technology, and the range of security devices that are a result of its security technology R&D, will be best served, in terms of marketing and general perception, if they are contained in a separate entity with an identity that more appropriately describes the security business upon which the technology and products are focused. It is therefore proposed that these security-business assets will be spun off into a new company -- Finderguard Technologies, Inc. -- while Environmental Technologies, Inc. pursues opportunities that it has identified elsewhere, particularly in the environmental field for which it was originally founded. To ensure that EMTI shareholders are treated equitably regarding the spin-off, and thus have ownership interests in both Finderguard Technologies, Inc. and Environmental Technologies, Inc., EMTI shareholders of record as of August 31, 2004, shall receive a 'stock dividend' comprised of ONE (1) common share of Finderguard Technologies, Inc., and FOUR (4) non-transferable preferred shares of Finderguard Technologies, Inc., for each FOUR (4) shares of Environmental Technologies held. For example: holders of 100,000 shares of EMTI will receive 25,000 common shares of Finderguard Technologies, Inc and 100,000 non-transferable preferred shares of Finderguard Technologies, Inc. It is envisioned that the common shares of Finderguard Technologies, Inc. will ultimately be traded publicly.
Management intends to clarify and expand on EMTI's anticipated and continuing (post Spin-Off) business activities in the near future. Shareholders of EMTI will have a proportionate ownership in the outstanding shares of Finderguard Technologies, Inc. as of the August 31, 2004 record date
Concerning the reasons for these corporate actions and the positive effect that Management and the Board of Directors expects they will have, President Harold Clifford noted in the June 7, 2004, announcement, "With the considerable potential we are witnessing in the Computer Guard and other related security products, it has become increasingly evident that it is in the best interest of the Company and its shareholders to assist taking this entity public under a separate identity and continue to pursue environmental opportunities under the existing entity. This will allow both public entities to pursue acquisitions of technologies and aggressive corporate growth in their respective fields and, when appropriate, to use its stock as currency for acquisitions, as well as enhancing their abilities in hiring key personnel and seeking additional financing alternatives." EMTI shareholders of record August 31, 2004, will of course participate in the enhanced growth potential and investment merit of both companies.
In compliance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, EMTI notes that statements contained in this announcement that are not historical facts may be forward-looking statements that are subject to a variety of risks and uncertainties. Accordingly, EMTI wishes to caution readers of this announcement that its future actual results may differ materially from those that any forward-looking statements may imply. There is no assurance the above-described events will be completed. There can be no assurance of the ability of the company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future.