SOURCE: American TonerServ

June 19, 2008 08:30 ET

American TonerServ Advances Strategy With Letter of Intent to Acquire Imaging Technology Products of Florida

SANTA ROSA, CA--(Marketwire - June 19, 2008) - American TonerServ Corp. (OTCBB: ASVP) ("ATS"), a strategic consolidator in the more than $6.0 billion highly fragmented independent segment of the printer supplies and services industry, announced today that the Company has entered into a non-binding letter of intent to purchase certain assets representing the retail business of Imaging Technology Products, Inc. ("IT Products") of Longwood, Florida.

According to unaudited financial information provided to ATS by IT Products, the business generated approximately $800,000 in revenue in 2007. Consideration for the purchase would be determined based on a due diligence review of IT Products' financial statements and other factors, but is expected to include a combination of cash, ATS stock and a promissory note. In addition, Mr. Joe Cody, the current president of IT Products, would become an employee of a subsidiary of ATS.

Dan Brinker, CEO of ATS, said, "Our letter of intent with IT Products represents the latest step in advancing our strategy to build hub-and-satellite operations in metropolitan business centers around the country. If the acquisition is completed, Tonertype, our hub subsidiary in Tampa, would provide administrative and logistical support for the business operated by IT Products, allowing IT Products to focus primarily on building local customer relationships while offering the benefits of a nationwide cartridge and printer service provider, including volume purchasing power, operational expertise and efficiency."

Mr. Cody began operations in 1989 and the company eventually became IT Products of Longwood FL. Mr. Cody said, "The benefits of joining ATS are numerous. My team and I will be able to focus on customer service and introducing new products and capabilities into new and existing accounts. The customer-oriented programs that ATS has pioneered, like remote print management and the GreenSmart cartridge recycling service, will help us develop business for ATS in our market."

Buddy Shaver, President of Tonertype, said, "We look forward to IT Products joining us as our first satellite and it represents another geographic point of service for our growing customer base in the Orlando area. The good people at IT Products will be able to focus their attention on customer service and expanding sales, while we handle the back office."

The acquisition is subject to the completion of due diligence, negotiation and execution of a definitive purchase agreement, as well as customary closing conditions. Additional information related to this transaction will be disclosed upon the execution of a definitive purchase agreement. The LOI provides that the parties will endeavor to complete the transaction within the next 90 days.

Mr. Brinker added, "ATS is actively identifying and evaluating additional prospective acquisitions. At the same time, we are strengthening our ability to provide cost-effective printer supplies and maximizing operational efficiencies and infrastructure to support our rapidly growing business."

About American TonerServ:

American TonerServ Corp. ("ATS") is building a nationwide organization to efficiently serve the printing needs of small- and medium-sized businesses by consolidating leading independent operators in the $6 billion recycled printer cartridge and printer services industry, offering top-quality, environmentally-friendly products and local service teams. Please see www.AmericanTonerServ.com for more information.

Forward-Looking Statements

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.

Contact Information

  • Contact:

    American TonerServ Corp.
    Phone: 800-736-3515

    Jordan Goldstein
    Stakeholder Communications
    Phone: 415-369-9000
    E-mail: Email Contact