SOURCE: PDC Innovative Industries, Inc.

February 16, 2006 11:00 ET

PDC Innovative Industries Releases Shareholders Letter

TAMPA, FL -- (MARKET WIRE) -- February 16, 2006 -- PDC Innovative Industries, Inc. ("PDC" or the "Company") (OTC: PDCN) today released a letter to the shareholders from Mr. Paul Smith, CEO of the Company.

To the Shareholders of PDC

It is my sincere pleasure to address all of our shareholders regarding the progress the Company has made over the past three months. During this period, management has implemented a business strategy to:

1.   position the company's quotation fully on the Pink Sheets;
2.   implement programs allowing the company to substantially reduced
     overhead expenses and begin reducing its debt;
3.   identify financing options in preparation for the company acquiring
     ownership interests in growing companies; and
4.   commence an exhaustive search for an acquisition/merger candidate.
With the assistance of the company's attorney, PDC filed a Form 15 on December 5, 2005 thereby terminating its registration and suspending its requirements to file reports under Sections 13 and 15(D) under Section 12 (G) of the Securities Exchange Act of 1934. This decision was made allowing the company to further reduce overhead expenses and provide additional opportunities for funding. Over the past several years, trading on the Pink Sheets has become very robust and attractive for many companies and investors.

We have substantially reduced the company's overhead expenses through the re-engineering of our organization and the elimination of non-producing expenses and assets. The company has entered into negotiations with certain creditors with the intent to eliminate most of our debt. The successful completion of these strategies, over the next six months, will enhance the company's ability to attract further funding for its acquisition strategies.

Following the decision to withdraw from the potential merger with Daytona Brands in November 2005, management decided to shift its short term focus towards acquiring minor ownership positions in growing companies. Our objective is to diversify the company's assets while identifying a more significant acquisition/merger. Over the past several months, we have analyzed numerous possible investments. In the past several weeks, we have chosen one company and have finalized terms, which will be described in a separate press release.

In conjunction with our short term strategy to acquire minor positions in growing companies, we have initiated a comprehensive search for a major acquisition/merger. With the assistance of several specialized search firms, the company has initiated preliminary discussions with one potential candidate. Due diligence will begin next week. Once the company decides this opportunity meets our requirements, we will move forward to formalize a definitive agreement and share the details with our shareholders.

Best Regards,
Paul Smith, CEO
This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. Such statements are subject to risks and uncertainties and other factors as may be discussed from time to time in the Company's public filings with the U.S. Securities and Exchange Commission ("Commission"), press releases and verbal statements that may be made by our officers, directors or employees acting on our behalf which could cause actual results to differ materially from those discussed in the forward looking statements and from historical results of operations. In addition to statements, which explicitly describe such risks and uncertainties, statements with the terms "believes," "belief," "expects," "plans," "anticipates" and similar statements should be considered uncertain and forward-looking. Factors that might cause such a difference include, without limitation: the uncertainty of the Company's ability to meet capital needs and as further set forth in our public filings filed with the Commission and our press releases.

Contact Information


  • Contact Information:

    Paul R Smith
    813-454-2306