SOURCE: COMMODORE APPLIED TECHNOLOGIES, INC.

August 30, 2005 10:52 ET

Commodore Applied Technologies, Inc. Announces 1 for 20 Reverse Split of Common Shares; New Trading Symbol - CXIA

Announces Additional Funding on EDAM Contract; $7 Million Additional Funding

Competes for Additional DOE Small Business Contracts

NEW YORK, NY -- (MARKET WIRE) -- August 30, 2005 -- Commodore Applied Technologies, Inc. formerly (OTC BB: CXII) now (OTC BB: CXIA), today announced that it has completed a reverse split effective the close of business August 29, 2005.

Applied Executes 1 for 20 Reverse Stock Split

Commodore Applied Technologies, Inc. ("Applied") (OTC BB: CXII) today announced that the Applied Board previously approved reverse stock split with the established ratio of 1-for 20 was declared effective at the close of business August 29, 2005. This move followed a vote February 8, 2005 at the Applied Annual Shareholders' Meeting in which shareholders authorized the board to effect the reverse split. Accordingly, at a Board Meeting of the Directors of CXII held on June 20, 2005, the Board declared the reverse split in a 1 for 20 ratio would be initiated on the effective date of August 29, 2005. Applied common stock will begin trading on a reverse-split basis on August 30, 2005. As a result of the reverse stock split, every 20 shares of Applied common stock will be combined into one share of Applied common stock.

The reverse stock split affects all shares of common stock, stock options and warrants of Applied outstanding as of immediately prior to the effective time of the reverse stock split. Fractional shares of common stock of the Company will not be issued as a result of the reverse stock split, but instead, holders of pre-split shares of common stock who otherwise would have been entitled to receive a fractional share as a result of the reverse split will receive one whole share.

The number of shares of Applied common stock outstanding prior to the reverse split was approximately 156 million. As stated in the proxy, no diminution of the authorized shares of CXII would occur as a result of the reverse split declaration. The Authorized number of shares of the stock of CXII will remain the same pre and post reverse split. The number of shares of Applied common stock outstanding after the reverse split is approximately 7.8 million. Shares of Applied common stock will trade on the Nasdaq Over the Counter Bulletin Board Market under the symbol CXIA after the reverse split goes into effect on August 30, 2005.

"The decision made by Applied's Board of Directors to complete the planned reverse stock split in July 2005 is timely," said Shelby T. Brewer, Applied chairman and chief executive officer. "Applied is undergoing restructuring initiatives that are intended to position the company for growth. The Board of Directors deemed a reverse split as an essential initiative for the long-term health of the Company and its shareholders. It adjusts Applied's capitalization structure to appropriate levels and it enables us to attract new investors. I am convinced that this decision, combined with continued strong execution by Applied's management team, will contribute to shareholder value creation."

Example for Shareholders of How the 1-for-20 Split Works:

A shareholder owning 10,000 shares of Applied common stock before the split would own 500 shares of Applied common stock after the split. A person owning 1001 shares would receive 21 shares following the split. A fractional share is grossed up to one full share. Registrar and Transfer Company has been retained to manage the exchange of stock certificates.

Applied's EDAM Sub-Contract Receives Additional Funding Modification

CEO Brewer stated: "Bechtel Jacobs has recently doubled its two year [2005 & 2006] valuation of the EDAM contract with Commodore/SAIC, from about $7 Million to about $14 million. The contract calls for a duration of two years with an option for extension another two years. Management believes that the Company will win the extension given our current performance evaluations from the client. Management further believes that the work volume will not decline in the second two year period." Mr. Brewer further stated: "In our announcement last year on the EDAM contract award we conservatively estimated the total four-year value to be about $13 million, based on Bechtel Jacobs' estimate of EDAM contract volume."

Brewer continued: "As we have noted in earlier statements, we are rolling out this engineering service to other Department of Energy sites. We have bid, again with SAIC, a similar scope to the Department of Energy's Idaho Site."

Applied Will Compete for Additional DOE Small Business Contracts

CEO Brewer continued: "The Department of Energy continues to show that it is serious about awarding more business to small businesses like Commodore. For example, the recently awarded River Corridor contract at Hanford [to Washington Closure LLC] calls for about 39% of the contract's value to be subcontracted to small business. The prime contract value is about $2 Billion. We expect to bid vigorously for a share of this work because several identified scopes line up squarely with our core strengths."

Commodore Applied Technologies, Inc. is a diverse technical solutions company focused on high-end environmental markets. The Commodore family of companies includes subsidiaries Commodore Solution Technologies and Commodore Advanced Sciences. The Commodore companies provide technical engineering services and patented remediation technologies designed to treat hazardous waste from nuclear and chemical sources. More information is available on the Commodore web site at www.commodore.com.

This Press Release contains forward-looking statements that are based on our current expectations, beliefs and assumptions about the industry and markets in which Commodore Applied Technologies, Inc. and its subsidiaries operate. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause Commodore's actual results to be materially different from any future results expressed or implied by these statements. Actual results may differ materially from what is expressed in these statements, and no assurance can be given that Commodore can successfully implement its core business strategy and improve future earnings.

The factors that may cause Commodore's actual results to differ from its forward-looking statements include: Commodore's current critical need for additional cash to sustain existing operations and meet ongoing existing obligations and capital requirements; Commodore's ability to implement its commercial waste processing operations, including obtaining commercial waste processing contracts and processing waste under such contracts in a timely and cost-effective manner; the timing and award of contracts by the U.S. Department of Energy for the clean-up of waste sites administered by it; the acceptance and implementation of Commodore's waste treatment technologies in the government and commercial sectors; and other large technical support services projects. All forward-looking statements are also expressly qualified in their entirety by the cautionary statements included in Commodore's SEC filings, including its quarterly reports on Form 10-Q and its annual report on Form 10-K.

Contact Information

  • Contact:
    James M. DeAngelis
    (212) 308-5800