Gatorz Inc.
TSX VENTURE : GTZ

Gatorz Inc.

March 23, 2009 12:34 ET

Gatorz Inc. Corporate Update

OAKVILLE, ONTARIO--(Marketwire - March 23, 2009) - In light of the current depressed U.S. and Europe economic environments where most of Gatorz's revenues are generated, Gatorz Inc. ("Gatorz") (TSX VENTURE:GTZ) has taken measures in the short term to reduce expenses and preserve cash. The Board of Directors and Management of Gatorz have approved a number of reductions and engaged in informal restructuring, with certain secured and unsecured creditors as listed below;

- Reduction of management salaries by 50%;

- Elimination of two positions out of 15 and reduction of hours worked;

- Elimination of certain marketing and promotional expenses;

- Board of Directors to now receive only stock based compensation;

- Suspension of all principal payments to secured debt holder on a temporary basis as agreed to by debt holder; and

- Temporary suspension of interest payments to convertible unsecured debt holders is commencing with the next payment (March 31, 2009). This action will place the company in default of the terms of the debenture;

The above temporary actions place the company close to a cash flow break-even budget which will be reviewed monthly.

The Board of Directors has also set up a special committee to generate and evaluate possible strategic alternatives for the Company. The independent members of the special committee are Mark Alden, Bryan Welsh and JF Thorman. The Company is in early stage discussions with one group at this date.

About Gatorz

Gatorz Inc. (www.gatorz.com) designs and distributes aircraft aluminium and hand made acetate action performance eyewear, including sunglasses and accessories targeted to the Motorsports, Outdoors (hunting, fishing and boating), travel retail and Security/Military markets. Gatorz Inc. products are
proudly worn by race car drivers Marco and Michael Andretti (IRL), Kurt Busch and Sam Hornish Jr. (NASCAR) as well as other professional and amateur athletes.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The risks going forward remain adding production capacity and the ability to meet this demand, controlling costs and sourcing ongoing funds to meet increased growth targets. Gatorz is also subject to the general economic conditions in the domestic and international markets it operates in. Gatorz Inc. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Gatorz Inc.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information