SANTA MONICA, Calif., May 31, 2005 (PRIMEZONE) -- Patient Safety Technologies, Inc. (AMEX:PST) announced today, following a board of directors meeting held on May 27, 2005, that a wholly owned subsidiary will be formed to house all non-patient safety related assets currently owned by PST, both public and private, including real estate, financial services, technology and media holdings. Various alternatives for the divestiture of the new holding company will be explored and may include creating a separately traded public company. The newly formed company will maintain separate financial statements, management and board of directors.
"The separation of PST's other businesses from its core patient safety business will allow greater focus on achieving our healthcare mission, and the aggregation of these non-core assets into one holding company will simplify the process of their divestiture," commented Todd Ault, PST's Chairman and CEO. "Through a possible separate public listing of this company, PST may have greater financial flexibility and gain maximum value from these assets."
In the May 27th meeting, the board of directors also authorized a share buy-back program of up to 150,000 shares of PST over the next 12 months. The Company will decide whether to re-purchase shares pursuant to this authority based on market conditions.
Patient Safety Technologies, Inc. (PST) is a developer, manufacturer and content provider of patient safety products and services, working toward becoming the leader in the patient safety sector. Headquartered in Santa Monica, California, the company's flagship product is its Safety-Sponge(tm) System, which allows for faster and more accurate counting of surgical sponges. For more information on Patient Safety Technologies, Inc., please contact the company directly at (310) 752-1416, or by email at info@patientsafetytechnologies.com or www.patientsafetytechnologies.com.
Forward-Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Patient Safety Technologies "expects," "should," "believes," "anticipates" or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in the Patient Safety Technologies filings with the Securities and Exchange Commission, including Patient Safety Technologies annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Patient Safety Technologies does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.