PRESS RELEASE:
For further information, contact:
At the Company: Investor Relations:
Airtrax The Equity Performance Group
Robert Watson - CEO Gary Geraci
856-232-3000 617-723-2373
http://www.airtrax.com gary@equitypergp.com
http://www.equityperformancegroup.com
FOR IMMEDIATE RELEASE:
AIRTRAX ANNOUNCES NEW CEO, DIRECTOR AND MANAGEMENT CHANGES
Blackwood, NJ: October 24, 2006 -- Airtrax, Inc. (OTCBB: AITX), a developer of
patented, Omni-Directional technology with military and commercial applications,
announced today that effective November 1, 2006, Robert M. Watson will be
joining Airtrax as the Company's new President, CEO and Director. Nicholas
Fenelli has stepped down as Airtrax's Interim CEO, and will remain with the
Company as its Chief Operating Officer.
Mr. Watson has extensive experience in corporate turnarounds and restructurings,
with a proven track record of repositioning companies to realize long term
shareholder value. He has both public (Fortune 50) and private company
experience in the manufacturing, construction and retail industries. From 2001
until October 2006, Mr. Watson was President and CEO of Hartz & Company, a
manufacturer of tailored clothing, with two production facilities in the United
States with sales and marketing offices in New York City. From 1996 to 2001, Mr.
Watson served as the Vice President, CFO and COO of America's Best Contacts and
Eyeglasses, a retail chain with 118 locations, a full service laboratory and
distribution center. His experience in the public arena was with Continental Can
Company, from 1967 through 1986, where he served as Controller for the food
packaging company with 29 manufacturing facilities and sales in excess of $1
billion. Mr. Watson received a BS in accounting from Fairleigh Dickenson
University and an EMBA from the University of New Haven.
As previously announced, Airtrax's Board of Directors appointed Andrew Guzzetti
as Chairman of the Board. Following the Board's initial directive of hiring a
full time, experienced executive as its new CEO, the Company is now in the
process of making additional key management hires. The Company is continuing its
search for a Chief Financial Officer and expects to fill the position in the
near term. Mr. Fenelli, who will remain with the Company as its Chief Operating
Officer, will draw on his years of service with Airtrax to lead a technology
team focused on identifying, developing and matching new commercial and military
industry specific applications for the Omni-Directional technology.
"Due to mitigating circumstances, we believe that third quarter sales of our
principal product, the SIDEWINDER(TM), has declined significantly and the
Company's manufacturing and marketing capabilities have been negatively
impacted. However, we continue to believe that Airtrax's patented technology and
the various applications it serves will redefine the material handling business
and we are taking steps now to fundamentally reposition the Company and
capitalize on this opportunity," stated Andrew Guzzetti, Chairman of Airtrax.
Guzzetti continued, "We believe that the appointment of Bob Watson as CEO and
Director is a significant step in turning the corner and rebuilding the
management structure at Airtrax. In addition, I believe many profound changes
will take place at Airtrax under Mr. Watson's leadership; I believe these
fundamental improvements may be seen in the business beginning in the first half
of 2007. I also believe we will be successful in our endeavor to streamline and
ramp up the business, as we attempt to bring our patented technology to the mass
market."
As previously reported by the Company in its periodic filings with the
Securities and Exchange Commission, in 2005 the Company entered into an
agreement with respect to the proposed acquisition of a German forklift
manufacturer, Filco GMBH. In connection with the acquisition, Airtrax advanced
Filco approximately $6.5 million in partially secured loans. Filco filed for
bankruptcy in February 2006. As of June 30, 2006, Airtrax had written off
approximately $5.5 million and expects to write off the remainder of the
investment, including certain inventory held in Filco's plant, in the third
quarter of 2006. Airtrax has developed a new strategic plan, with a primary
focus on higher margin technology applications that meet the specific and unique
demands of the military and commercial markets. It is anticipated that Airtrax's
new marketing plan will emphasize consumer awareness, by educating and
communicating the key benefits of its patented Omni-Directional technology to
encourage usage and new application deployment. Management is also committed to
pursuing strategic partnerships and joint ventures that will enable Airtrax to
better capitalize on its technologies, improve its distribution channels and
revenue growth. The Company will focus on its core strengths, while
simultaneously continuing to outsource business functions that management deems
outside its core competencies. Management is also currently pursuing various
financing options to implement its evolving business strategy, including
marketing, product and sales development.
About Airtrax, Inc.:
A U.S.-based developer of Omni-Directional technology, Airtrax designs and
manufactures Omni-Directional vehicles. The Airtrax patented wheel was designed
and developed by Airtrax after receiving a technology transfer from the US Navy
in the form of a Cooperative Research and Development Agreement (CRADA).
The SIDEWINDER(TM) Lift Truck and the Airtrax COBRA(TM) aerial work platforms
(AWPs) are the first Omni-Directional vehicles using Omni-Directional technology
and the patented Airtrax wheel to be commercially produced. The nearly
maintenance-free drive system design reduces maintenance costs, delivering cost
efficiencies to companies both large and small. The Airtrax patented
Omni-Directional wheel is manufactured exclusively for Airtrax vehicles.
Airtrax has developed business partnerships, received orders, and shipped
SIDEWINDER trucks to California, Wisconsin, Arkansas, Ohio, New Jersey,
Kentucky, Florida, and Pennsylvania in the United States, and internationally to
the United Kingdom, Japan, Spain, Panama, New Zealand, Canada, and South Africa.
For more information and to view a must-see product demonstration, visit
www.airtrax.com or http://www.equityperformancegroup.com/clients_airtrax.php.
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 involved 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. Customers of the SIDEWINDER mentioned in
this release may own shares of Airtrax's stock or may own shares in the future.
(Then again anyone who sees the SIDEWINDER is likely to want to invest in the
Company!
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