SOURCE: American TonerServ Corp.

December 21, 2006 09:21 ET

American TonerServ Announces Latest Acquisition

SANTA ROSA, CA -- (MARKET WIRE) -- December 21, 2006 -- American TonerServ Corp. ("ATS" or the "Company") (OTCBB: ASVP) announced today that the Company has entered into a customer list purchase agreement with Brody Enterprises ("Brody"), which has been doing business as "Sun Products," pursuant to which the Company acquired Brody's list of customers and related information. Sun Products has been engaged in the distribution of compatible laser toner cartridges and other office products, primarily to business customers since 1994. The list of contact and client information that Brody has compiled through its operations is a substantial sales and marketing asset which has generated more than $1.0 million in annual sales. ATS intends to utilize the customer list to continue to market printing supplies to this additional base of customers. There is no assurance that ATS will generate as much revenue from these customers as Brody has in the past.

According to Dan Brinker, CEO of ATS, "We have been focused on expanding this segment of our business, due largely to what we believe are opportunities for consolidation and achieving greater efficiency in the market. Acquiring additional customer lists has been one of our stated goals, and we are gratified to be able to announce this latest addition to our company." Arnold Brody, President of Brody Enterprises, stated, "I am extremely impressed with the ATS management team and business model. I am confident my customers will continue to receive excellent customer service."

As consideration for the purchase of the customer list, ATS issued a promissory note to Brody for $800,000. As previously reported in ATS' Form 10-QSB for the quarter ended September 30, 2006, on July 5, 2006, the Company purchased a customer list from Computech Print Solutions, Inc. ("Computech"). On August 26, 2006, the Company purchased customer lists and related information from Laser Cartridge Recharge Systems, Inc. These companies were distributors of compatible toner cartridges, primarily to business customers. The Company is using the customer lists to solicit sales of compatible toner cartridges to increase the Company's sales of such products.

About American TonerServ:

American TonerServ Corporation has recently entered the public markets after more than a decade in operations providing a range of supplies and services for office equipment. The company's stated mission is to become the nation's leading distributor of compatible toner cartridges. American TonerServ has assembled a strong management team and advisory group to provide experience and direction as the company looks to expand its existing nationwide service network, and to gain market share in this large but highly fragmented compatible toner market.

Safe Harbor 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.

Contact Information

  • Contact:
    American TonerServ Corp.
    475 Aviation Blvd.
    Suite 100
    Santa Rosa, CA 95403
    United States
    Phone: 800-736-3515