SOURCE: American TonerServ Corp.

August 14, 2007 12:30 ET

American TonerServ Extends Letter of Intent With Tonertype

SANTA ROSA, CA--(Marketwire - August 14, 2007) - American TonerServ Corp. ("ATS" or the "Company") (OTCBB: ASVP) announced today that ATS has obtained an extension of the exclusivity provision of its Letter of Intent with Tonertype, LLC and/or Tonertype of Florida, LLC ("Tonertype") through September 14, 2007.

According to Dan Brinker, CEO of ATS, "We are excited about the proposed transaction with Tonertype that would make them be part of the ATS Team. The proposed acquisition, with a targeted closing date in September 2007, coupled with the flexibility derived through the option to terminate the Optima management agreement announced earlier today, is expected to result in combined annualized revenues of approximately $9 million in the greater Tampa Bay market alone, which would provide the opportunity for tremendous operational efficiencies and increasing the breadth of services to our customers in that market."

On April 30, 2007, ATS announced it had entered into a non-binding letter of intent ("LOI") to purchase the assets of Tonertype. Located in Tampa, Florida, Tonertype has been engaged in the business of print management, printing supplies and repair service since 1995. As part of the proposed acquisition, ATS intends to employ the current Tonertype management team and continue to service Tonertype's customers as they have been in the past.

The acquisition is subject to the completion of due diligence, negotiation and execution of a definitive agreement, the completion of an audit of Tonertype's financial statements, as well as customary closing conditions. Additional information related to this transaction will be disclosed upon the execution of a definitive agreement.

About American TonerServ:

American TonerServ Corp. ("ATS"), a publicly traded Delaware corporation (OTCBB: ASVP) is a disciplined consolidator in the highly fragmented printer supplies & services industry. It's looking to acquire and unite independent businesses focused on delivering printer supplies and service to end-customers. ATS offers thousands of customers a one-stop shop for their print management needs by providing equipment, supplies and service for printers, multi-function printers (MFPs), copiers and fax machines.

ATS has developed a very attractive and scalable platform for the estimated 5,000 independent companies providing printer equipment, supplies and service nationwide. In addition to providing the critical back-office component to these companies, sharing "best practices" and creating a "community" atmosphere of the acquired companies is an attractive attribute of their model.

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.
    475 Aviation Blvd.
    Suite 100
    Santa Rosa, CA 95403
    United States
    Phone: 800-736-3515