Composite Solutions Sells Anchor Reinforcements
SAN DIEGO, May 2 - Composite Solutions, Inc. (CSI) (OTC Bulletin Board: KIPS) announced today that, effective March 31, 2001 CSI sold its entire interest in Penultimo, Inc., doing business as Anchor Reinforcements, to Gower Worldwide Limited. Anchor Reinforcements produces composite components for seismic retrofitting and construction needs.
The sale resulted in Composite Solutions, Inc. being relieved of over $820,000 in current debt and contingent liabilities. Composite Solutions, Inc. also reacquired 150,000 shares of its own common stock.
As part of the transaction, Composite Solutions, Inc. and Anchor Reinforcements have agreed to form a new entity to be known as Composite Supply, LLC for among other purposes jointly seeking projects utilizing Composite Solutions, Inc.'s technology. The transaction contemplates a five-year supply contract for composite components and materials from Anchor on favorable terms.
CSI provides end-to-end solutions for a variety of industries that use fiber-reinforced polymer (FRP) composites. Using FRP technology developed by and licensed from the University of California, San Diego, CSI offers a comprehensive package from analysis through construction. Primary uses of the technology include revolutionary new construction, structural engineering, earthquake retrofitting and blast hardening of a variety of structures. For more information visit CSI's website at www.CompositeSolutionsInc.com.
Except for historical information contained in this document, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this document, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company and its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the company's management, as well as assumptions made by and information currently available to the company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory, reimbursement and trade environment; and the risk factors reported from time to time in the company's reports.