NEW YORK, Sept. 22, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:IEAM) responds to the 13D filing by Mr. Beryl Zyskind and disputes Mr. Zyskind's entitlement to any shares as alleged in his filing.
The Company feels very strongly that the filing by Mr. Zyskind is false and misleading. While the Company is currently in litigation regarding Mr. Zyskind's claims, the amount of shares claimed to be beneficially owned by Mr. Zyskind is outrageous and erroneous. The Company has numerous defenses to Mr. Zyskind's claims including, but not limited to:
1. An executed release that states, "The parties hereto warrant
that this Mutual Release is to be of the broadest nature and is to
be dispositive of all matters between the parties hereto."
2. That the $100,000 in question was not invested for the benefit
of the Company and
3. That Mr. Zyskind has already received appropriate compensation
for his claims.
Management believes the timing of Mr. Zyskind's Schedule 13D filing demonstrates that it was not done for the purpose of complying with the securities law, but for the purpose of abusing the securities laws as a weapon for gaining unfair advantage in his civil litigation. The Company has contacted the Enforcement Division of the Securities and Exchange Commission regarding this abuse of the securities law and is considering all of its legal options at this time. The Company will also be commencing legal action to redress any potential harm to its shareholders.
About Industrial Enterprises of America, Inc.
Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, and other automotive additives & chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.
Statement Under the Private Securities Litigation Reform Act
Except for the historical information contained herein, the matters discussed in this press release may include forward-looking statements or information. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of Industrial Enterprises of America set forth herein and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects", "forecasts" or similar expressions, are forward-looking statements. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties which could cause the Company's future results to differ materially from those anticipated, including: (i) the Company's history of ongoing operating losses; (ii) the overall marketplace and clients' usage of EMC Packaging's and Unifide Industries' products, including demand therefore, the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors, control of expenses, and revenue generation by the acquisition of new customers; (iii) the ultimate consequences of Hurricane Katrina on the supply and/or distribution chain; (iv) the consequent results of operations given the aforementioned factors; and (v) the requirement for the Company to raise additional working capital to fund operations and the availability and terms of any such funding to the Company. Without any such funding, the Company believes it may be forced to curtail operations, and if no alternative to financing, such as an additional merger or acquisition, is consummated, the Company may not continue as a going concern. Other risks are detailed from time to time in the Company's 2003 Annual Report on Form 10-K, as amended, its Quarterly Reports on Form 10-QSB, and in its other Securities and Exchange Commission reports and statements. The Company assumes no obligation to update any of the information contained or referenced in this press release.