LANGHORNE, Pa., Oct. 11, 2005 (PRIMEZONE) -- Nesco Industries, Inc. (Pink Sheets:NESK) through its subsidiary, Hydrogel Design Systems, Inc., acquires certain assets, rights and supply contract from Dicon Technologies, for the manufacture and distribution of a patented line of commercial, industrial and medical products.
Nesco Industries, Inc. (Pink Sheets:NESK) through its subsidiary, Hydrogel Design Systems, Inc. ("HDS") has entered into an agreement with H.H. Brown Shoe Technologies, Inc. d/b/a as Dicon Technologies ("Dicon"). The agreement grants HDS the exclusive rights to manufacture Dicon's patented hydrophilic urethane foam products, polyurethane gels and moisture managed foam footwear inserts and to distribute, along with Dicon, these products in North America. HDS, which currently manufactures cross linked polymer gels for the wound care and transdermal drug delivery markets, will purchase certain equipment from Dicon in order to meet the manufacturing needs under the contract. Products to be manufactured under this agreement are sold for use in cosmetic, medical, and household markets including the foot care market under the board name DRYZ(r).
Matthew Harriton, CEO of HDS stated that, "we are delighted to be working with Dicon and the ability to manufacture and offer an extensive line of Dicon's foam products along with HDS' existing gels to complimentary markets should cause a major shift as to how HDS will be perceived by the markets that it serves." Harriton also stated "this agreement should have a significant positive impact on our revenues and profitability." Wayne Celia, President of Dicon stated, "that the combination of foam and gels under one roof will allow Dicon greater penetration in the markets that it serves." Celia also stated that "the two companies plan to pool their intellectual and manufacturing resources to create products from the existing technology and patents that will have a substantial impact on specific markets." HDS and Dicon expect to be in full production under the agreement by the end of November.
About HH Brown Shoe Technologies, Inc.: HH Brown Shoe Technologies, Inc., d/b/a Dicon Technologies, manufactures and markets products derived from hydrophilic urethane chemistry. Products include Just For You(r) cosmetic products, DRYZ(r) moisture management products and "Absorbs" medical dressings.
About Hydrogel Design Systems: HDS develops, manufactures and markets high water content, electron beam cross-linked, aqueous polymer hydrogels under the Aquamatrix(r) label, used for wound care, medical diagnostics, transdermal drug delivery, components for medical devices and cosmetics.
FORWARD-LOOKING STATEMENTS
All statement other than statements of historical fact included in this release, including without limitation, statements regarding the marketability of the products discussed, financial position and business strategy of NESCO and HDS and plans and objectives of management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend", "will", "could", "may", and similar expressions, identify forward-looking statements. Such forward-looking statements are based on the belief of, as well as assumptions made by and information currently available to, NESCO's and HDS' management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, competitive factors, pricing pressures, capacity and supply constraints; market acceptance of new products and services; risks associated with the entry into new markets; and delays in product delivery. Such statements reflect management's views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to operations, and results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements. Neither NESCO nor HDS undertakes any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.