BLUE BELL, Pa., April 29, 2003 (PRIMEZONE) -- Tasty Fries(r), Inc. (OTCBB:TFRY) announced today that David J. Rights, one of the Company's shareholders, has purchased California Food and Vending's potato royalty right. On January 21, 2002, Tasty Fries, Inc. and California Food and Vending entered into an agreement for Tasty Fries to reacquire California Food and Vending's royalty rights on the sale of Tasty Fries vending machines and the sale of Tasty Fries potato product. The Agreement called for a total payment of $1,500,000 to California Food and Vending. To date, Tasty Fries has paid $750,000 plus interest to California Food and Vending and has reacquired the royalty rights on the sale of its vending machines. Tasty Fries is obligated to pay an additional $750,000 plus interest to California Food and Vending to reacquire the royalty rights on the sale of Tasty Fries potato product.
The agreement reached between Tasty Fries, Inc. and Mr. Rights calls for the payoff of Tasty Fries obligation to California Food and Vending to reacquire the potato royalty. Mr. Rights was able to negotiate a payment of $696,602.38 to acquire the royalty right. The agreement between Tasty Fries and Mr. Rights calls for Tasty Fries to pay Mr. Rights $0.20 per pound of Tasty Fries potato product sold for a term consisting of the greater of: ten years, commencing when two hundred fifty (250) Tasty Fries vending machines are placed into commercial use; or payment in full of the $696,602.38 plus accrued interest on the unpaid balance, calculated at nine (9%) percent per annum, compounded upon the signing of the agreement.
"The benefits to Tasty Fries to enter into this Agreement with Mr. Rights are two fold, first, we have reduced the royalty payment on potato product from $0.25 to $0.20 per pound and secondly, the royalty has a termination date whereas the royalty paid to California Food and Vending was in perpetuity. This translates into higher profits and greater earned revenue for Tasty Fries." stated Edward C. Kelly, President and CEO of Tasty Fries, Inc. "This transaction improves both the short and long term prospects of the Company."
"A shareholder letter was sent by the Company on April 25, 2003 inviting all stock holders to attend an Open House at Tasty Fries on June 25, 2003 between the hours of 1:00 p.m. to 5:00 p.m. to see the new production machines and taste the fries. I truly hope our shareholders attend and join us in the beginning of a new era at Tasty Fries," stated Edward C. Kelly, President and CEO of Tasty Fries, Inc.
About Tasty Fries, Inc.:
Tasty Fries has developed a patent-protected vending machine that prepares, cooks and dispenses freshly made fries with superior dietary attributes, flavor, aroma and texture. Total cooking time is approximately 90 seconds for each order, then under 60 seconds for subsequent orders. The fries are made from top-quality potatoes and are cooked in cholesterol-free oil using state-of-the-art robotics and technology.
Safe Harbor Statement:
Except for the historical information herein, the statements in this press release are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve know and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition and risk inherent in the operations of a company.