SOURCE: Innova Robotics & Automation, Inc.

February 22, 2007 07:00 ET

Innova Robotics & Automation Issues Update From Chairman and CEO Walter K. Weisel

FORT MYERS, FL -- (MARKET WIRE) -- February 22, 2007 -- Innova Robotics & Automation, Inc. (OTCBB: INRA) today issued the following update from Chairman and Chief Executive Officer Walter K. Weisel, recapping Innova's developments in 2006 and discussing the Company's strategy going forward.

Innova accomplished many significant goals in 2006, which we believe may set the foundation for continued progress in 2007 and beyond. We strengthened our financial condition, delivered on existing contracts, forged strategic alliances, expanded our business base, fortified the Innova brand, and added new management talent.

Strengthening our financial position:

During 2006, we took meaningful steps to broaden our appeal to customers, partners, and investors. Revenues during the first nine months of this year represented a significant milestone in the Company's history. Our twelve month results will be announced in our annual report with the SEC. We repaid over $1 million in debt and consummated a Securities Purchase Agreement with Cornell Capital Partners L.P. providing for the sale of the Company's 10% secured convertible debentures. In November, we believe we improved our capital structure through effectuating a 1-for-10 reverse stock split that was approved by approximately 97% of our stockholders. We believe that these moves have enabled us to invest in our core technology and explore new applications for our offerings, while also hiring and retaining key personnel.

Additionally, we changed our name to Innova Robotics & Automation, Inc. to more accurately convey our purpose and highlight our competitive strengths in the fields of robotics and automation technology.

Driving growth through new customers and strategic relationships:

The Robotic Workspace Technologies (RWT™) subsidiary completed an order for its flagship product, the Universal Robot Controller™ (URC™) that was placed by the Titan Wheel Corporation (Quincy, IL), a producer of off-road wheels and equipment. We supplied and installed six control systems for complex workcells that include welding, machine tending/material handling, and piercing operations.

We fulfilled the single-source contract with the National Aeronautical and Space Administration (NASA) Goddard Space Flight Center (GSFC) for a high-speed PC-based control system used for developing robotic procedures for space missions with the URC. The communications capability and processing speed of the URC (approximately 1,000 commands per second from NASA's host PC) enables NASA-GSFC engineers to accurately simulate the in-space environment.

As a result of the advanced work with NASA, we incorporated many new features in the Universal Robot Controller3™ (URC3™) which was introduced to the market in June 2006. The URC3 is 20% less expensive than its predecessor, making it more affordable for "plug 'n play" control retrofits for high-growth manufacturing market segments.

We also received a multiple unit order from a custom fabricator of parts for the trucking industry. This order will utilize the URC3 controller to interface with a six-axis Cincinnati Milacron 646 robot being used for MIG welding. Each workcell includes a Miller Deltaweld® system equipped with Miller Auto Invision™ welding control and two-axis positioning table for a total of eight (8) axes under control of the URC3.

In December, we announced that a steel and alloy pipe manufacturer placed an order for the URC to be used in precision operations between the robot and external tooling. This installation will help protect against possible dangers inherent to producing the parts with manual labor and guard against potential operator injuries.

Key alliances were formed with Embry-Riddle Aeronautical University and the University of South Florida, creating technological relationships for collaborative projects. Embry-Riddle placed an order for a URC3 and a robot which has been delivered. This installation provides the basis for study, curriculum development, and training using Innova's hardware and software products at a leading university in the field of robotics and unmanned aircraft.

At the University of South Florida, we are working jointly with the College of Engineering to undertake research and development projects in unmanned ground and aerial robotics, radio-frequency (RF), infrared, and wireless controls, and open-architecture PC systems.

The Company also placed a PC-operated robotic arm with the engineering department at the Florida Gulf Coast University to develop personal robotic technology for use in elder care and other health care applications. As the country's population ages, we believe that elder care represents a growing market and our plans include a variety of devices to assist the physically challenged and elderly.

Expanding our platform:

To expand our portfolio of products and services, in May 2006 we completed the acquisition of CoroWare Technologies, headquartered near the Microsoft campus in Redmond, Washington. CoroWare was founded by several Microsoft employees, and we were privileged to be part of Microsoft's entry into the robotics industry with the launch of Microsoft Robotics Studio in June 2006. As part of its ongoing work in the creation of new robotic development applications, CoroWare launched the CoroWare PlusPack™, a collection of applications, services, tools, assets and utility classes that complement and extend the capabilities of Microsoft Robotics Studio. Microsoft Robotics Studio enables developers in all markets to easily create robotic applications for the PC and other computing platforms. We believe CoroWare will advance our platform with software based automation offerings and distribution of new software packages across many platforms.

Increased market visibility:

In 2006, Innova participated in several key trade shows that showcased our products and subsidiaries. In June, we exhibited at the RoboBusiness Conference and Expo in Pittsburgh. I gave a keynote presentation on "The New Robotic Industry; Converging Technologies Drive New Applications." The Company's exhibit highlighted what we believe is our ability to forge technology alliances to accelerate the development of new robotics technologies for industrial, personal, and service applications.

At the annual AUVSI Unmanned Systems North America Symposium and Exhibition held in August in Orlando, Innova demonstrated the Company's ability to track and guide unmanned aircraft, ground vehicles and surface vessels with our software command and control console. The demonstration resulted in increased dialog with the Department of Homeland Security and other U.S. military operations concerning future security initiatives that could potentially incorporate Innova's technology and expertise.

Additionally, I was a keynote speaker at the Electrical Manufacturing Exposition in September in Indianapolis; the Motor and Drive Systems Conference last February in Miami; and the FBI National Academy Associates State Conference in July in Fort Myers. I also presented our Company at investor forums in Boston, New York, Boca Raton, Las Vegas, and Philadelphia.

Leadership and a strengthened management team:

In August 2006, we retained The Ashcroft Group, LLC to provide strategic advisory consulting services. John Ashcroft, former U.S. Attorney General for the George W. Bush Administration, was appointed as the Chairman of our Advisory Board reporting directly to me. Together we have laid the foundation to apply our software and service capabilities to key Homeland Security initiatives to what we believe will better protect U.S. borders, ports and cities. They also provide access to key projects and partnerships to our Innova Robotics subsidiary relative to our target markets which include homeland security, military, first responders, medical, and the intelligence community.

Our targeting of the Homeland Security market was complemented by the development of an unmanned vehicle control system driven by software, and the retention of the marketing services of Kevin McCarthy. Kevin was subsequently named to the Board of the Company's Innova Robotics subsidiary.

To facilitate our endeavors, Prospective Technology, Inc. (PTI) joined the Innova Robotics team. PTI provides leadership and guidance in private and military markets focusing on strategy, business development, and leading-edge technology development. PTI is an independent provider to Innova Robotics.

We announced several other appointments throughout the year to strengthen our organization including:

--  Robert Ballard rejoined RWT as Vice President of Operations.
--  Kenneth Vanden Berg joined Innova as Chief Financial Officer.  Ken
    brings over 30 years of executive and financial management experience in
    industries that include engineering, manufacturing, and distribution supply
    chain management.  He has also led over 70 financial and strategic
    acquisitions throughout his career.
--  Eugene Gartlan, formerly CFO, was appointed Executive Director of
    Strategic Development, and also named to the Company's Board of Directors.
--  Manhattan-based Brainerd Communicators, Inc. was appointed as our
    public relations agency of record.
--  In January 2007, Charles H. House was appointed to the Innova Robotics
    & Automation, Inc. Board of Directors. Chuck's career highlights include
    Executive Director of the Media X program in the Division of Research at
    Stanford University, Director, Virtual Collaboratory, IT Research for Intel
    Corporation, Chairman of TII Networks and Chairman of Applied Microsystems.
Protection of trade secrets and patents:

As reported in the Company's 2004 and 2005 annual reports, Robotic Workspace Technologies filed a case in the United States District Court for the Middle District of Florida against ABB, Inc., and ABB Robotics AB. We are alleging misappropriation and theft of trade secrets, breach of contract, and breach of the covenant of good faith. The action stems from dealings between the parties in 2002. This case will be heard in front of a jury and the trial date has been scheduled for March 2007.

2007 and beyond -- a growing value proposition:

In January, CoroWare launched its new Enterprise Business Solutions Group targeting small and mid-sized companies. The initial marketing and sales efforts will be to the Customer Care Market through Innova's relationship with Microsoft. CoroWare's new software and automation service offering tailors Microsoft Customer Care Framework for small and mid-sized call centers. We believe the CoroWare team is in a unique position, given its subject matter expertise and knowledge of Microsoft's Customer Care Framework. Driving new services into the markets where CoroWare enjoys competitive advantages is fundamental to Innova's growth strategy.

Our plans for continued growth build on the business successes of 2006. We intend to add to our portfolio of offerings through the aggressive pursuit of acquisitions in the field of information technology, resulting in what we believe will be the highest quality team of software engineers. Our focus will remain on robotics, providing software solutions for applications in such markets as healthcare, elder care, space exploration, military, homeland security and others. We also intend to expand our presence in automated business systems by providing software solutions for business productivity as well as process and performance improvement.

We sincerely appreciate the support of our shareholders, employees, vendors, customers, and strategic alliances. We believe that we will continue to provide the responsible management that our shareholders have come to expect from Innova, and we look forward to providing updates as the year unfolds.


Walter K. Weisel
Chairman & CEO
Innova Robotics & Automation, Inc.
About Innova Robotics & Automation, Inc.

Fort Myers, Fla.-based Innova Robotics & Automation (OTCBB: INRA) pioneers innovative control, software and communication solutions that make robotics and automated systems more productive, powerful and profitable for customers in the telecommunications, manufacturing, aerospace, research, and service industries. The Company is chartered to continue expanding its growing suite of technologies through acquisitions and organic growth. Innova operates through three subsidiaries, Robotic Workspace Technologies (RWT), CoroWare Technologies, and Innova Robotics, which offer convergent technology and expertise that bridge robots, facilities and business systems for greater functionality and ROA. Visit Innova online at

Forward-Looking Statements:

Forward-looking statements such as "believe," "expect," "may," "plan," "intend," etc., contained herein are within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are based on the Company's beliefs and assumptions it made using information currently available to it and which reflect current views concerning those future events. Actual results could differ materially. Therefore, undue reliance should not be placed on any forward-looking statements, since they apply only as of today's date, and accordingly, reference should be made to the Company's periodic filings with the SEC.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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