SOURCE: American TonerServ

January 09, 2008 07:25 ET

American TonerServ Terminates Management Agreement With Azaria Management Group

SANTA ROSA, CA--(Marketwire - January 9, 2008) - American TonerServ Corp. ("ATS" or the "Company") (OTCBB: ASVP), a strategic consolidator in the highly fragmented printer supplies and services industry, announced today effective December 26, 2007, ATS entered into a Termination of Amended and Restated Management Agreement (the "Termination Agreement") with Azaria Management Group, LLC (formerly named "Optima Technologies, LLC) and Steven R. Jensen. Pursuant to the Termination Agreement, the Amended and Restated Management Agreement between ATS and Azaria dated August 13, 2007 was terminated. ATS negotiated the termination of the agreement in order to take over direct management of the Company's Optima Technologies subsidiary in an effort to increase profitability of the subsidiary. Steven R. Jensen, the CEO and principal of Azaria, also serves as a Director of ATS.

Additional information can be found in the Company's Form 8-K as filed with the Securities and Exchange Commission on January 2, 2008.

"The termination of our management agreement with Azaria is in line with our ongoing efforts to reduce costs, streamline efficiencies and increase profitability of the subsidiary," stated Dan Brinker, CEO of ATS. "As a member of our Board of Directors, Steven Jensen will remain instrumental the overall future success of both Optima and ATS," added Mr. Brinker.

About American TonerServ

American TonerServ Corp. ("ATS") is a consolidator in the highly fragmented printer supplies and services industry. ATS acquires, integrates and manages independent businesses that deliver printer supplies, services and equipment to small/mid-sized businesses. Through its consolidation strategy, ATS plans to capture at least 3 - 5% market share ($250.0 MM annualized revenue) of the compatible toner cartridge industry, establishing itself as the brand of choice in the compatibles market as Hewlett Packard is in the OEM market. Please visit www.AmericanTonerServ.com.

Forward-Looking Statement:

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

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