BERLIN, Feb. 20, 2003 (PRIMEZONE) -- Advanced Technology Industries, Inc. (OTCBB:AVDI) ("ATI") announced today that pursuant to the Letter of Intent ("LOI") dated October 16, 2002, as amended November 27, 2002, with LTDnetwork, Inc. ("LTDN"), LTDN has invested an aggregate amount of $500,000 in ATI through January 30, 2003, under a secured promissory note.
As previously announced, the obligations under the promissory note are secured by the Star Can patents of ATI and Cetoni Umwelttechnologie-Entwicklungs GmbH ("Cetoni"), a subsidiary of ATI. In the event that LTDN provides loans to ATI in excess of $500,000, additional security may be required in the form of other patents of ATI and its subsidiaries and/or shares of ATI common stock.
ATI and LTDN are continuing to conduct due diligence in connection with the previously announced proposed transaction (the "Transaction") between ATI and LTDN as described in the LOI. The parties currently anticipate that the Transaction will close sometime in the second quarter of 2003. The Transaction is subject to the occurrence of certain events that may or may not happen including the satisfactory completion of due diligence, the negotiation and execution of a definitive merger agreement and the negotiation and compromise of outstanding debts with creditors. The terms of any such definitive agreement may materially differ from those contained in the LOI.
"We are already working well with the principals of LTDN, and we look forward to the successful completion of a transaction with LTDN," commented Hans-Joachim Skrobanek, President of ATI.
"We are pleased with the business prospects of ATI, Cetoni and Reseal, Ltd. ("Reseal") and have funded $500,000 to date to further these activities," said Allan Klepfisz, President and Chief Executive Officer of LTDN. "Although there is much work to be done, including the compromise of creditors and full review of the product lines, LTDN looks forward to funding the successful commercialization of ATI's and LTDN's products upon the conclusion of its due diligence and the combination of the businesses of ATI and LTDN," added Mr. Klepfisz. "Besides the promising consumer-oriented product lines of Cetoni and Reseal, we also see the potential through ATI for the development of environmental and fire proof technologies and for developing the use of silicon and silicon carbide in various applications. Furthermore, we are interested in pursuing synergies offered by the ATI network in Russia and in international activities."
There are several conditions precedent to the closing of the Transaction, any of which can fail to occur, which could result in the Transaction not taking place. There can be no assurance that the Transaction or additional financing will occur. In addition, there can be no assurance that the closing of the Transaction will not be delayed beyond the parties' current expectations.
About Advanced Technology Industries, Inc.
Advanced Technology Industries, Inc. is a technology holding company devoted to technology identification and acquisition, as well as research and development leading to commercialization of innovative products, including proprietary technologies. ATI has offices in Berlin and Passau, Germany and in Moscow, Krasnoyarsk, and Novosibirsk, Russia.
About LTDnetwork Inc. (www.ltdnetwork.com)
LTDnetwork operates over 350 specialty e-commerce sites and has developed a range of cutting-edge proprietary software products that is designed to facilitate and enhance the purchasing experience of both its own customers and those of leading Internet companies that will utilize the products under joint venture or licensing arrangements. LTDnetwork has offices in San Francisco, California and Melbourne, Australia.
The above news release contains forward-looking statements. These statements are based on assumptions that the management of Advanced Technology Industries, Inc. believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of Advanced Technology Industries, Inc. and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements. Advanced Technology Industries, Inc. assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.