Power Technology to Acquire Leach Industries
LAS VEGAS--(BUSINESS WIRE)--Aug. 21, 2002--Power Technology (OTCBB:PWTC - News) announced a letter of intent to acquire Leach Industries,Inc., developer of the AMRON line of utility products. ADVERTISEMENT
This acquisition marks the beginning of a business transformation for Power Technology that will create a revenue model with positive cash flow.
Leach Industries, Inc., located in Macon, Georgia, is a pioneer in the automatic meter reading market, having operated as a developer and manufacturer of cost effective automation components for utility companies since 1995. The AMRON System is a powerful combination of specialized hardware and software combined to provide utilities with a complete low cost automation process for communicating automatic meter reading and outage notification. According to industry sources, there are over 121 million electric meters in the U.S. and less than 10% had been read remotely at the end of 2001.
The AMRON LITE is a patented, compact outage/restoration notification and meter reading device that conveniently plugs into an existing power receptacle and a telephone outlet. In conjunction with the device, Leach offers full call-center services, including data storage, outage/restoration statistics and third party outage/restoration notification.
Leach Industries has completed the development of a communication interface option board ( CIB ) to facilitate wireless communications with new, fully electronic meters. The CIB provides wireless retrieval of metered and other power data in real time. Leach also provides full meter data services via its AMRON Meter Management Portal ( AMMP ), making utility and customer billing data available via the internet as well as directly to utility billing systems.
Leach Industries, with its AMRON LITE product, has booked over $ 3 million in contract sales, has positive cash flow and is profitable. In addition, there are more than a dozen completed beta tests and new tests occurring with seventeen other major utilities who are potential users of the product.
Executives of both companies see this merger as an opportunity beneficial for growth and success. Completion of the merger is slated for late September.
Safe-Harbor Statement under the Private Securities reform Act of 1995: The statements contained herein that are not historical are considered, " forward looking," Such statements are subject to risks and uncertainties that could cause material difference from expected and real outcome of results.The company is subject to possible delays in either production or customer acceptance of the product. This information is anticipated to be correct but subject to risks of new technologies. Delays in testing and evaluation are always harmful to newly developing high tech companies.
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Contact:
Power Technology, Inc.
Lee Balak, 604/925-0716
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