SOURCE: Texas Prototypes

June 12, 2006 07:30 ET

TXP Provides Business Update

RICHARDSON, TX -- (MARKET WIRE) -- June 12, 2006 -- YTXP Corporation ("TXP") (OTCBB: YTXO) today provided the following update on its business:

"As a pioneer and pre-eminent player within the pre-manufacturing services segment, we are very pleased with the widespread recognition we are gaining within the industry," stated Michael C. Shores, president and chief executive officer. "Many within the electronics industry, including original equipment manufacturers, original design manufacturers, and contract manufacturers, frequently spend unnecessary money and time, bringing new products from prototype to mass production. Outsourcing these pre-manufacturing services to TXP can rapidly and cost-effectively bridge the gap between engineering design and production by first validating the functionality of the product, and improving the product's manufacturability. This in turn accelerates our clients' time-to-market and may significantly reduce production costs."

Mr. Shores continued, "Initially, we sought to penetrate enterprise customers and demonstrate our capabilities on individual projects. As a result, our client base now includes more than 90 customers including many Fortune 500 and Fortune 1000 companies. Now, with a proven track record and demonstrable value from our services, we are expanding our sales and marketing efforts with existing customers to target senior members of management--in order to deploy our services enterprise wide. We believe that by further penetrating our existing client base, coupled with our strong business pipeline, we have very promising growth opportunities ahead."

Mr. Shores concluded, "With the final $550,000 tranche of our previous financing in place, we have strengthened our working capital position and plan to use a portion of the funding to support the acceleration of our sales and marketing strategy. We also believe we have improved the terms of our previous financing, reflecting our improving financial position. In addition, our state-of-the-art facilities can support a multi-fold increase in revenue, which would allow us to rapidly scale the business and generate meaningful operating leverage."

Mr. David Ratzker, senior vice president of corporate finance at Cornell Capital Partners, stated, "TXP has grown tremendously since our initial investment in 2004. This final tranche of funding and improved terms illustrates our confidence in management and our positive outlook for the business."

On June 5, 2006, Cornell Capital Partners issued TXP $550,000, the final tranche of its previously disclosed $2.5 million financing. In addition, the company restructured the terms of its previous $550,000 round, issued June 5, 2005, including changing the maximum conversion price from $0.157, to a maximum conversion price of $0.50, matching the terms of this latest round. This significantly reduces the dilution to shareholders should the debenture convert at the maximum conversion price.

The company also announced that Michael C. Shores, president and chief executive officer, will host a live "Lunch & Learn" covering TXP's technical capabilities on Friday, June 16, 2006 at 12:00 noon Central Time. The live presentation will be available from the investor relations section of the company's website: www.texasprototypes.com. To view the presentation, please visit the site at least 10 minutes early to register, download and install any necessary audio software.

The company was also featured in Electronic Business Magazine. A link to the article is available at: http://www.reed-electronics.com/eb-mag/article/CA6339512?pubdate=6/1/2006.

About TXP

TXP, based in Richardson, Texas, is a global provider of pre-manufacturing services for the electronics industry, supporting original equipment manufacturers, original design manufacturers, contract manufacturers and new technology innovators. The company excels in both design and supply chain solutions services for new product development which include prototyping and quick-turn electronic assembly, new product introduction, pilot production, material supply chain management as well as the transfer of product into production. TXP's core technology focus is on complex printed circuit board assemblies, photonics, optoelectronics, and advanced packaging solutions, while forging profitable business opportunities with well-positioned high speed, digital, analog, and RF technologies and industries that require complementary service requirements. By working closely with its customers and being highly responsive to their requirements throughout the design processes, TXP believes that it can be an integral part of its customers' operations, accelerate their time-to-market and time-to-volume production and reduce their product costs. TXP has three operating divisions that build on its core Design for Manufacturability foundation: TXP-Texas Prototypes, TXP-Photonics, and TXP-Packaging. For more information visit www.texasprototypes.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are "forward-looking statements" that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission which may cause actual results, performance and achievements of the company to be materially different from any future results, performance or achievements expressed or implied.

Contact Information

  • For Further Information:
    YTXP Corporation (TXP)
    Michael C. Shores
    President/CEO
    (214) 575-9300