CALVERTON, N.Y., Dec. 17, 2002 (PRIMEZONE) -- Citing sharply improved business prospects, AdZone Research, Inc. (OTCBB:ADZR), a pioneering Internet surveillance technology solutions provider, today announced that the company will seek funding through private placements of its common stock with accredited investors at this time in lieu of potentially dilutive financing, such as convertible debentures or equity lines of credit.
"Our decision has been shaped by events on several fronts," said AdZone Chairman and CEO Charles A. Cardona, III. "Certain traditional financing methods are highly dilutive at this time, and recent advances in our marketing efforts on several fronts offer significant near-term potential.
"Based on recent business developments, we have re-evaluated our capital needs for the coming months and determined that our new business potential, and the funds that we expect them to generate, suggest that forms of financing which may result in significant dilution are not in the best interests of AdZone or its shareholders," Cardona continued.
The CEO said current plans for obtaining funding through private placements of the company's common stock, as well as operating revenues that the company hopes to generate over the next several months, should be sufficient to fund operations as the company goes forward in executing its business plan.
"This new direction underscores increased support of our focus on identifying potential Internet-related threats, and our growing role in Homeland Security efforts, as well as the protection of people worldwide from terrorism," said Cardona.
"We are hopeful of concluding certain letters of intent or memoranda of understanding, as well as actual up-front revenue contracts, which we are in the process of negotiating with both governmental agencies and major defense contractors that are focused on anti-terrorism efforts," said Cardona.
"Because of national security considerations, we are not at liberty to discuss the scope or nature of such activities at this time but anticipate being able to reveal all non-secret information as these events unfold," the CEO said from the company's headquarters here.
AdZone Research's home offices are in a secured facility that formerly housed major defense contractor Northrop Grumman Corporation. The facility was earlier used for top-secret defense research and development, and was part of the United States Navy's Naval Defense Technology Center.
Through monitoring of more than 500,000 Web sites worldwide, AdZone provides tracking and monitoring of targeted information on the Internet, with an expanded focus on global Internet analysis of security-related data transmissions. For additional information, please visit the company's Web site at www.adzoneinteractive.com . An advisory on the company also is available at http://www.barrowstreet.com.
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.