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Tech Laboratories, Inc. Announces First Phase of Comprehensive Financial Restructuring Plan


NORTH HALEDON, N.J., June 2 /PRNewswire-FirstCall/ -- Tech Laboratories, Inc. (BULLETIN BOARD: TCHL) announced today it has entered into an agreement with a Northeast-based institutional fund as part of a comprehensive financial restructuring plan. The first phase of the plan included the purchase of a significant portion of the Company's existing debt consisting of convertible debentures. The fund has also agreed to provide the Company with additional financing for working capital and acquisitions.

"Clearly, this is a very positive step for the growth and development of our Company," said Bernard M. Ciongoli, president of Tech Laboratories, Inc. "Our debt is now in more favorable hands with a group who understand our business and recognize its potential as a means to thwart the growing international threat of cyber terrorism to businesses and governmental agencies. We believe a relationship with a sophisticated investor of this type will allow us to position Tech Laboratories as a viable, affordable solution to this problem."

Tech Laboratories, Inc. manufactures, markets and sells patented technology for positive access security to prevent unauthorized hacker attacks. Through its proprietary DynaTraX(TM) Enterprise Management System (DEMS) enables users to reconfigure networks electronically and also has security features that can trap and trace intrusions (hackers) in a system automatically. This software/hardware system provides the ultimate in positive access security against the increasing threat posed by cyber terrorists. The Company said networks that rely on keys, passwords, ID's and reporting intruder attacks to a network manager for access security are at risk for being hacked.

Ciongoli said that funds provided for working capital will be used to launch an aggressive national marketing program for the DynaTraX(TM) Enterprise Management System (DEMS). He said the Company is also actively pursuing acquisitions with firms that offer compatible technologies or related business models.

To view video on Tech Laboratories comprehensive DynaTraX(TM) technology, go to the Tech Laboratories, Inc. website at http://www.techlabsinc.com/ click on "Global Network Management Communications" and download video.

About Tech Laboratories, Inc.

Tech Laboratories, Inc. manufactures, markets and sells a product creating a new paradigm of automating and securing high-tech networks at the physical layer. The Company's primary product, DynaTraX(TM), a patented (US6414953B1) high-speed digital matrix cross-connect switch with a revolutionary new technology, can significantly reduce network downtime and achieve substantial cost savings in data and telecommunications networking environments. DynaTraX(TM) has the ability to create a critical and meaningful solution to stop hackers from intruding into networks, thereby thwarting cyber-terrorists. DynaTraX(TM) electronically disconnects a hacker, detected by Intrusion Detection Software and reconnects him to a simulated network within 60-90 nanoseconds that allows you to hold and trace him.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Contact: Bernard Ciongoli

973-427-5333

Tech Laboratories, Inc.
CONTACT: Bernard Ciongoli, [phone], for Tech Laboratories, Inc.

Web site: http://www.techlabsinc.com/