SOURCE: Innova Robotics and Automation, Inc.

September 26, 2007 07:39 ET

Innova Achieves First Milestone of Strategic Plan

Innova Shifts Focus to Core Business Segments

FORT MYERS, FL--(Marketwire - September 26, 2007) - Innova Robotics & Automation, Inc. (OTCBB: INRA) today announced aggressive changes that it believes will assist in achieving its financial goal of becoming cash flow positive by 2008 as outlined in the Company's July 2007 Strategic Plan. This realignment will focus resources toward addressing the Company's most attractive market segments -- software and software professional services -- through its fastest growing subsidiary, CoroWare, Inc. By shifting its focus onto CoroWare and its rapidly growing software development and professional services markets, Innova and CoroWare believe that they can grow effectively through organic growth, with the continuous release of new services and products, global expansion, and acquisitions of privately held software development and professional services companies.

CoroWare has enjoyed great success to date including: CoroWare's revenues have approximately doubled in each of the past three years; and for the first six months of 2007 revenues were $1.7 million, up from $.4 million for the same period last year.

Strategic Alignments

Innova has made and continues to make changes to reposition the Company, including the previously announced decision to strategically refocus its industrial robotics subsidiary, Robotic Workspace Technologies (RWT), from robotic controller manufacturing to software licensing. RWT is now focusing on licensing patents and software to robot controller original equipment manufacturers (OEMs) and others. However, there is no guarantee that OEMs or others will license our patents and software. Although RWT attempted to establish the URC3 in the industrial market as a solution to extend the useful life of industrial robots, this market has undergone tremendous change. Automobile manufacturing plants and others in the United States have closed, flooding the market with inexpensive reliable industrial robots and controllers.

Additionally, we have assessed the business and market position of Altronics and we have decided to sell this business. We cannot provide a guarantee that we will be successful in connection with such sale or that we will receive an acceptable bid for such assets. While we believe this is an attractive business with a well-defined market, it no longer is in alignment with our new strategic direction of building our software and software professional services business. Accordingly, future funding that would have been designated for Altronics' growth will be invested in growing our new core business.

Efforts have also been made to reduce general and administrative expenditures. To date, Innova has eliminated several items of cash expenditures, and more cost reductions shall be implemented in the near future. In addition, Innova is managing and reducing debt through a combination of renegotiation of short term debt as well as voluntary debt conversions into restricted common stock of Innova.

"We believe these strategic transitions will help Innova focus its attention and efforts on significant market segments with high growth potential such as information technology infrastructure optimization, software as a service (SaaS), and mobile robotics," said Gene Gartlan, CEO of Innova Robotics & Automation, Inc. "Taking a more aggressive approach toward fiscal matters -- such as debt management and expenditure reductions -- will further help Innova and CoroWare focus on growing sales and achieving profits."

Positioned for Growth

CoroWare continues to offer Innova an effective means of achieving its tactical objectives and strategic direction. Since its inception, CoroWare has doubled its gross revenues annually. In order to further drive the next wave of sales growth, CoroWare has reorganized into three business units that are each pursuing significant market segments:

--  Enterprise Business Solutions, whose focus is on the delivery of
    solutions and services, such as Information Technology Infrastructure
    Optimization, that help enterprise customers maximize the benefit and
    reduce the risk of automated business solutions.
--  Robotics and Automation, whose focus is on professional services for
    unmanned autonomous vehicles, remote sensor networks, and humanoid robotic
    platforms; and the CoroBot product line for university, government and
    commercial researchers and developers.
--  Advanced Technology Group, whose focus is on customer program
    management, business management, and release management services that help
    CoroWare's customers, including Microsoft, develop and deliver
    sophisticated products and complex solutions.

In addition, CoroWare is making investments in its infrastructure to help sustain their growth rate by improving the overall business results through the use of improved management tools, recently expanding to Europe with the opening of an office in Dublin, Ireland, and expanding the sales and marketing capacity of CoroWare with a new Vice President of Sales.

"CoroWare reached an important milestone this year when it tripled the number of long term customer contracts and commitments compared with a year ago," said Lloyd Spencer, president of CoroWare. "By reorganizing CoroWare into business units that are each pursuing long term business relationships with their customers, I believe CoroWare is well positioned to continue and potentially exceed its current pace of growth."

CoroWare shall continue to address significant markets with high growth potential by focusing its professional services and solutions development efforts on two key initiatives in the coming year:

--  Infrastructure Optimization, with a focus on providing mid-size
    businesses with a new approach to maximizing the benefit and reducing the
    cost of their Information Technology investments.  CoroWare's initiative
    addresses a subset of the very large IT Management marketplace and
    addresses the following customer needs: Identity and Access Management,
    Desktop, Device and Server Management, and Data Protection and Recovery.
--  Mobile Robotics, with a focus on delivering platforms and solutions
    for the university, government, and commercial researcher and developer
    community.  This initiative addresses a subset of the large and rapidly
    growing mobile robotics marketplace and shall be supported through the sale
    of professional services and mobile robot platforms.

We believe sound business strategies implemented properly will get us to our goal of a high-growth Software and Software Professional Services company enjoying strong revenues, positive cash flows, an improved balance sheet, and reported profits. These are challenging goals for 2008, but we believe they are achievable with proper execution and allocation of resources.

About Innova Robotics & Automation, Inc.

Fort Myers, Fl.-based Innova Robotics & Automation (OTCBB: INRA) pioneers innovative solutions for customers in the software, aerospace, research, and service industries. The Company is chartered to continue expanding its growing suite of technologies through acquisitions and organic growth. Visit Innova online at

About CoroWare

CoroWare, an Innova Robotics & Automation company, is an innovative software and software professional service company and mobile robotics integrator that delivers forward-looking solutions and services to help customers and communities realize their goals. CoroWare has depth of knowledge and breadth of experience in developing software and solutions for mobile service robotics and business automation through products that include the CoroWare CoroBot product line. For more information, please visit

Forward-looking statements such as "believe," "expect," "may," "plan," "intend," etc., contained herein are within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on the Company's beliefs and assumptions it made using information currently available to it and which reflect current views concerning those future events. Actual results could differ materially. Therefore, undue reliance should not be placed on any forward-looking statements, since they apply only as of today's date, and accordingly, reference should be made to the Company's periodic filings with the SEC.

Contact Information