SOURCE: American TonerServ

April 03, 2007 09:22 ET

American TonerServ Completes Latest Acquisition With Optima Technologies, L.L.C.

SANTA ROSA, CA -- (MARKET WIRE) -- April 3, 2007 -- American TonerServ Corp. (OTCBB: ASVP) (the "Company" or "ATS") announced today that a newly formed subsidiary of the Company has purchased certain assets of Optima Technologies, L.L.C. ("Optima") pursuant to the terms of an Asset Purchase Agreement between the Company and Optima. This agreement is the result of ongoing negotiations between the two parties which earlier was made public by ATS in a press release on February 5, 2007. The newly formed subsidiary of the Company will retain key members of the Optima management team and continue to service Optima's customers.

Optima has been engaged in the business of print management, printing supplies and repair service since 1987. According to unaudited financial information provided by Optima, the business currently generates approximately $3.5 million of revenues annually. This acquisition is the latest of several that ATS has completed in recent months as the Company continues to move forward with its business plan to become the nation's leading distributor of compatible toner cartridges.

According to Dan Brinker, CEO of ATS, "This most recent development is a continuation of our ongoing efforts aimed at consolidation in a market characterized by a significant degree of fragmentation, presenting what we believe are tremendous opportunities in this sector. We are extremely gratified by this latest development. Optima has a strong regional market presence and a good reputation for service. ATS will assist Optima to grow internally through offering best practices. Including this acquisition, our plan for the calendar year 2007 is to acquire $15 to $20 million in annualized revenue. This acquisition is another step in the fulfillment of our overall business plan."

Steve Jensen, CEO and founder of Optima Technologies, stated, "The ATS model, along with their proven leadership team and resources, is going to help Optima break through to new growth levels. We are excited about joining the ATS team and are confident that our customers will continue to receive excellent service because of ATS's and Optima's commitment to exceptional quality and superior service."

Optima received compensation of approximately $2,550,000, which consisted of $750,000 in cash and $1,800,000 in promissory notes. The Company also assumed certain liabilities of Optima of approximately $76,825. One of the promissory notes, in the amount of $300,000 will be convertible into stock of ATS.

As previously reported, ATS purchased a customer list from Brody Enterprises on December 20, 2006, and also purchased a customer list from Computech Print Solutions, Inc. on July 5, 2006 and another from Laser Cartridge Recharge Systems, Inc. on August 26, 2006. These companies were distributors of compatible toner cartridges, primarily to business customers, and ATS is utilizing the customer lists to solicit sales of compatible toner cartridges and to increase the Company's revenue base.

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," "plan" 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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