SPNG
SpongeTech(R) Delivery Systems, Inc. Updates to Shareholders on Agreement with RM Enterprises
Thursday January 8, 10:00 am ET
SpongeTech(R) Announces a Seventy-Nine Million Share Reduction in Outstanding Shares
NEW YORK, Jan. 8 /PRNewswire-FirstCall/ -- SpongeTech® Delivery Systems, Inc., America's Cleaning Company(TM), (OTC Bulletin Board: SPNG - News) is pleased to announce that the SpongeTech® Board of Directors is retiring seventy-nine million shares (79,000,000) of SpongeTech®'s common restricted (R144) stock from RM Enterprises. This stock will be retired to the Company's Treasury. Upon completion of this transaction, RM will still own approximately 600,000,000 restricted shares. The Board states that further share reductions are being contemplated.
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Michael Metter, CEO of SpongeTech® comments, "This initial transaction represents the first step in the restructuring of the corporate capitalization so that the company can place itself in the best possible position for future growth. The Company is exploring other viable options for any and all possible opportunities that may present themselves. It is important to note that this is only the first step of the process and is not the end. The Company believes that the stock is being artificially manipulated and as such is currently examining several options that can be employed for the purpose of enhancing shareholder value."
Mr. Metter added "Despite the economic slowdown now being felt in the world economy our business remains strong. For our second quarter 2009, ending November 30, 2008, the 10Q to be filed shortly with the Securities Exchange Commission (SEC), will show we are 'on track' to meet or exceed our forecast for sales of $40,000,000 with profit expected to exceed $7,000,000 for our fiscal year ending May 31, 2009. We expect to be announcing new orders with new channels of retail distribution throughout America for our products that will catapult us with future sales and earnings in our next fiscal year 2010 that begins June 1, 2009."
For more information, please contact Investor Relations at 1-877-SPONGE-T, and/or visit the Company's website at: www.spongetech.com
About SpongeTech® Delivery Systems, Inc.
SpongeTech® Delivery Systems is a company, which designs, produces, and markets a unique line of reusable cleaning products for household use. These sponge-based products utilize SpongeTech®'s proprietary, patent (and patent- pending) technologies involving hydrophilic (liquid absorbing) foam and polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, the latter of which comes pre-loaded with specially formulated soaps and wax that are released when the sponge is wetted and applied to a surface with minimal pressure. The Company's current product line is designed for Car Care and Pet Care, however, SpongeTech® is currently exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, as well as a unique 'foaming' bath sponge for children.
Safe Harbor Statement
Under The Private Securities Litigation Reform Act of 1995: The statements in this presentation that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-KSB for the year ended May 31, 2008, the Company's Quarterly Report on Form 10-QSB for the first quarter ended August 31, 2008. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
Contact:
SpongeTech® Delivery Systems, Inc.
Investor Relations:
Bill Young, 1-877-776-6438
wayoung55@aol.com or info@spongetech.com
