NEW YORK, September 9, 2003 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR), a pioneering Internet surveillance technology solutions provider, today reported that Barrow Street Research, an independent research group headquartered here, today reaffirmed its buy recommendation on the company, originally issued in October 2002, in an updated progress report scheduled to be published today.
The report notes that since September 11, 2001, the company has received many inquiries concerning the application of its technology in the war against terrorism.
"Beginning in January 2003," the report says, "the company began running its NetGet(tm) technology on a daily basis, and since then the company has independently been credited with discovering and helping to thwart at least two confirmed terrorist plots."
Currently, the report continues, "there is substantial interest in ADZR's capabilities, and the company has formed key strategic relationships with Raytheon (NYSE:RTN), Boeing (NYSE:BA), and the Sarnoff Corporation.
In May of this year, Barrow Street observes, "the company announced it had been awarded its first revenue generating contract from a major defense contractor, which was followed by another award just last week focused on the major contractor's range of products and services aimed at identifying clandestine terrorist communications using the Internet, on behalf of federal agencies."
Noting that "The company is led by a motivated and experienced team of executives whom, in our opinion, have the capabilities of leading ADZR through a period of rapid growth and development," the research analysis goes on to point out that "Since the company has not fully commenced operations, management is of the opinion that current financial results are not meaningful as an indication of future operations...
"In our opinion," Barrow Street observes, "AdZone Research is truly functioning at the highest levels of participation in the homeland security efforts, beyond anything the company can reveal. Much of the activity that the company is involved in is classified. Accordingly, it's very difficult to project exactly what the company's future prospects hold. However, given recent announcements about another contract from a major defense contractor we believe...that revenue could build quickly over the next few years, particularly if, as we expect, more defense contractors sign on. Moreover, the nature of the services provided by ADZR is high-margin, suggesting that profitability can build rapidly."
In conclusion, the report said: "Since our initial report on AdZone in October of 2002, the company has made significant progress. Of particular note are the contracts that have been obtained from a major defense contractor. We anticipate that in coming months the company will make more progress in obtaining contracts and that the investment community will truly start paying attention to the ADZR stock. Indeed, we believe that ADZR has tremendous upside potential from these levels and we continue to rate the stock a BUY."
A full copy of the updated report will be accessible at www.barrowstreet.com later today, and additional information on the company can be found at www.adzoneresearch.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.
More information on Homeland Security issues, including news releases, events and experts available for comment, can be found on the Homeland Security Newsline at www.primezone.com/hs