Sure Trace Security Corporation
OTC Bulletin Board : SSTY
Pink Sheets : SSTY

Sure Trace Security Corporation

August 26, 2005 09:13 ET

Sure Trace Releases Shareholder Update; Company Files Litigation Against Former Officials of Sure Trace; Company is Cooperating with U.S. and Canadian Investigations

PHILADELPHIA--(CCNMatthews - Aug 26, 2005) -

Sure Trace Security Corporation (OTC:SSTY) announced that it has filed a lawsuit against various former officers, directors or representatives of Sure Trace, and their newly formed company, alleging that the defendants have violated non-competition agreements with Sure Trace, misappropriated business opportunities belong to Sure Trace, and engaged in other wrongful conduct designed to damage Sure Trace.

The lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on August 9, 2005. It is captioned Sure Trace Security Corporation v. James Barry, et al., Case No. 2:05-cv-04216-HB. The case has been assigned to United States District Judge Harvey Bartle III and can be accessed via the U.S. District Court's PACER website at https://ecf.paed.uscourts.gov/.

Sure Trace had previously engaged counsel to investigate the matter, which led to the filing of the lawsuit. It has also engaged counsel to represent Sure Trace in an ongoing formal investigation by the Securities and Exchange Commission, as well as an inquiry being conducted by the Royal Canadian Mounted Police.

Sure Trace management has learned that both investigations appear to focus on whether certain press releases issued by Sure Trace during 2004 and 2005 made proper disclosures of the matters discussed in the releases. Sure Trace's management believes that some of the releases were issued at a time when some of the individuals who have been sued by Sure Trace were in control of Sure Trace.

Sure Trace management has pledged to cooperate fully with both the SEC and the RCMP. That cooperation is ongoing. Sure Trace's counsel has communicated with the SEC in response to questions raised by the SEC staff, and will continue to do so. Comparable cooperation is ongoing with the RCMP. Although Sure Trace is confident that present management has committed no wrongdoing, it has decided not to engage in a public airing of the issues, including the motivations of those who appear to have piqued the interest of the SEC and the RCMP to conduct their investigations. "We will let the facts speak for themselves in our dealings with the regulators," said Mr. Cimino. "At the same time," Mr. Cimino said, "we will fight hard against ongoing attempts by others to besmirch our company and its officers and directors." He also stated: "Personal attacks against individuals associated with Sure Trace are disgusting and demeaning to those making those attacks." He called on those making the attacks to "cease and desist" from further personal attacks.

Mr. Cimino also said that the company continues to work on the development of business alliances in China and the Philippines. Sure Trace and its Chinese joint venture partner conducted a public demonstration last week of Sure Trace's basic technologies. Further developments will be publicly disclosed when warranted.

About Sure Trace Security Corporation

Sure Trace produces integrators for anti-counterfeiting and security surveillance applications and is a provider of integrated tracking devices. The Company intends to deliver turnkey solutions for governments, armed forces, and industry, through its own proprietary technology and through aggregating the technology, products, and services of third parties via licensing agreements and or joint ventures. For more information go to: www.suretrace.com.

The stock of Sure Trace has recently been suspended by the Securities and Exchange Commission, but the suspension has ended by its own terms. Management of Sure Trace is currently working with the broker-dealer community and regulators to permit quotations to be entered on the Pink Sheets as soon as possible. More information will be provided to the public when circumstances warrant.

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or perform as intended, that we may be unable to obtain necessary financing to continue operations and development, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof and Sure Trace undertakes no obligation to update such statements.

Contact Information

  • Sure Trace Security Corporation
    by
    De Jong & Associates
    Ron de Jong, 760-943-9065
    email: ron@dejong.org