BELMONT, Mass., Nov. 15, 2006 (PRIMEZONE) -- Kronos Advanced Technologies, Inc. (OTCBB:KNOS) President and Chief Executive Officer Daniel R. Dwight announced that during the first fiscal quarter ended September 30, 2006 the Company made advances toward the achievement of the Company's fiscal 2007 objectives: executing its agreements with EOL and DESA, establishing new strategic partnerships for marketing and selling Kronos-based air purification products, obtaining further independent validation of the efficacy of the technology and expanding its intellectual property.
Business Highlights
Medical. Kronos' Russian strategic partner, EOL LLC, continued to achieve its objectives with technical support from Kronos' product development team:
-- EOL's Tree(tm) air purification product was approved by the Russian
Research Institute of Medical Equipment for use in operating rooms
and other areas of hospitals and healthcare facilities that require
a sterile environment and received a Registration Certificate that
designates the product for medical use by the Ministry of Health
Care and Social Development of the Russian Federation.
-- In conjunction with EOL transitioning Tree(tm) into production,
Kronos began the sale of electronic components and power supplies
to EOL. Kronos is currently shipping 100 power supply units per
week to EOL for final assembly into the devices.
-- The combination of obtaining Ministry certification and
transitioning into production has allowed EOL to begin formal
marketing of the Tree(tm) air purification product to private
hospitals and medical clinics in Russia from which Kronos expects
to earn a royalty stream in fiscal 2007, along with revenue
generation from the sale of hardware.
Commercial and Residential. Kronos continued to make progress in the development of embedded applications for the commercial and residential markets:
-- In conjunction with the Company's newest strategic partner, DESA
LLC, Kronos designed its first Kronos-based product for embedding
the technology into a series of heater products. In October 2006,
DESA approved the designs and committed to the funding of the
product development.
-- Several leading global home appliance manufacturers have initiated
discussions with Kronos with an interest in using the Kronos
technology for developing select consumer applications, including
vaporizers and kitchen range hoods. Expanding on prior work
conducted for IKEA and others, Kronos is designing and developing
prototypes for additional customer demonstration and evaluation.
-- In October 2006, a leading global home appliance manufacturer
committed to fund 20% of the cost for Kronos to produce a silent
kitchen range hood prototype to the customer's specifications. This
range hood device represents the culmination of more than 12 months
of product design and development effort by Kronos to apply its
technology to this unique embedded residential application. The
product has been shipped to the customer to begin testing and
evaluation.
Independent Technology Testing and Validation. Kronos continued to work with its customers and other independent sources to expand the Company's product claims platform. In obtaining Russian product certification, EOL completed clinical trials of the Kronos-based air purification device. The results noted below demonstrate the efficacy of the Kronos technology in a hospital environment with patients present:
-- The Pulmonary Department of Municipal Hospital No. 2 in Moscow
completed a clinical trial of the EOL air purification device.
The results showed a 100% decontamination of bacteria
(Staphylococcus aureus) in under five hours from a 66m3 hospital
room while patients were present and 100% decontamination of mildew
fungi in under two hours from a 113.2m3 hospital room;
-- The Scientific Institution of Health Care, Central Clinical
Hospital No. 2 in Moscow completed a second clinical trial of the
EOL air purification device. The results showed a 100%
decontamination of bacteria (Staphylococcus aureus) in less than
one hour and 80% decontamination of general bacteria in less than
24 hours from a 48m3 hospital room while people were present.
Intellectual Property. During the quarter, the Company received notice of allowance by the U.S. Patent office of three more of its patent applications. This brings the Company's U.S. patents to eleven.
Financial Highlights
For the first three months of fiscal 2007, the Company's wholly owned subsidiary, Kronos Air Technologies, Inc., continued to make investments in product development across commercial and residential standalone and embedded product applications, as well as for business development activities to further expand the Company's base of new potential strategic partners. For the three months ended September 30, 2006, Kronos lowered its operating expenses to $743,000 compared with $832,000 in the corresponding period the year before, which resulted in a decreased net loss of $843,000 compared with $973,000 for the corresponding periods.
Details of the Company's results can be found in its quarterly report filed November 14, 2006 on SEC Form 10-QSB, at www.sec.gov or at www.kronosati.com.
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos Advanced Technologies has developed a new, proprietary air movement and purification system that utilizes state-of-the-art high voltage electronics and electrodes to silently move and clean air without any moving parts. Kronos is actively commercializing its technology for standalone and embedded products across multiple residential, commercial, industrial and military markets. Kronos' technology is versatile, energy- and cost-efficient and exhibits multiple design attributes, creating a broad range of applications. The Company's business strategy includes a combination of building internal capabilities, establishing strategic alliances and structuring licensing arrangements. Kronos Advanced Technologies is located in Belmont, MA. More information about Kronos Advanced Technologies is available at www.kronosati.com.
Forward-Looking Statements
With the exception of historical information contained in this press release, this press release includes forward-looking statements and comments. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond the Company's control. Forward-looking statements, by their nature, involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance. Other risks are summarized under the caption "Certain Business Risk Factors" in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2006 as filed with the Securities and Exchange Commission.