November 17, 2000 - ZTEST ELECTRONICS INC. FY2000 RESULTS AND STATUS UPDATE
MISSISSAUGA, November 17, 2000 - ZTEST Electronics Inc., YZT-CDNX, ZTSTF-OTC BB, ("ZTEST"), wishes to announce that the fiscal year ended June 30, 2000 proved to be a year of both triumphs and disappointments. Total revenues for the year were reduced by approximately $500,000, representing a decrease of 21% from the 1999 levels. This decrease in revenues resulted in the realization of a loss from operations of $690,842 as compared to an operating loss of $97,822 in the previous year.
The management of ZTEST recently determined that there was no reasonable assurance that Nexsys Commtech International Inc. ("Nexsys") would be able to discharge the amounts due to ZTEST as at their respective maturity dates. Accordingly, in order to reflect this uncertainity, ZTEST has written down the carrying values of these financial instruments as at June 30, 2000, along with the investment and advances to Uniqrypt.Com Inc. ("Uniqrypt"), to their estimated net realizable values resulting in further losses of $7,521,248. These write downs are not intended to signify that either Nexsys or Uniqrypt have been discontinued or that there is no possibility of subsequent recovery of these amounts.
In a letter to its shareholders on October 5, 2000, Nexsys detailed that: "Ever changing market conditions now require us to reposition our product offering in order to better address emerging consumer, regulatory and technology trends within the utility sector". In the same letter, Mr. Gaston Germain, CEO of Nexsys stated: "the financial resources currently available to us are insufficient to both complete this reassessment and continue product development. Accordingly, the Board of Directors, acting prudently in the interest of shareholders, recently approved a cost reduction program aimed at preserving available options and financial resources". As part of this program, product development has been suspended pending management's reassessment of the direction of the company.
ZTEST is developing new and exciting product and service offerings. The focus of the Company will be to continue to exploit areas of growth that will not only capitalize on the opportunities created in the past, but those created more recently. The Company has expanded its depth and is confident that its acquisitions and investments will achieve greater successes within the next fiscal year.
On October 2, 2000, the shares of ZTEST began trading on the newly organized Canadian Venture Exchange under the symbol "YZT". In addition, ZTEST announced on October 24, 2000, that, effective October 17, 2000, its common stock was cleared by NASD Regulation Inc. for trading on the OTC Bulletin Board under the symbol "ZTSTF".
Our strategic partner, Gametele Systems Inc. ("Gametele"), through its proprietary Bingotrax® System with terminals located in 1,200 retail locations, is currently managing media bingo games throughout Ontario. These games include the Ontario Brain Injury Association Rainbow Bingo game and the Ontario Coalition of Seniors Organizations Bingo game, both from Hamilton, Ontario. Gametele's press release of October 4, 2000 announced their servicing of the Rotary Club of Kanata Sunrise TV Bingo game.
In a press release dated October 30, 2000, Gametele announced that in January 2001, it begins administering a daily newspaper bingo game on behalf of a coalition of charities that have been licensed by the City of Toronto. This new media game will have the numbers published in the Toronto Sun newspaper and will be serviced by an increased Bingotrax® network of 3,500 terminals throughout Ontario. Plans are currently being made to expand the newspaper concept to the Ottawa Sun in early 2001 as well as to other newspapers in both Canada and the United States. ZTEST has the exclusive rights to design and manufacture any and all of Gametele's products.
Med-Minder Enterprises Inc. ("Med-Minder") continues to position itself as a value-added product and service in the health care industry. Med-Minder’s electronic, palm-size medication reminder and information device helps mitigate the problems of noncompliance in the use of prescription drugs. Field-testing in the spring and summer of 2000 has proven the high acceptability of the product by patients. Med-Minder is currently evaluating ways to access the marketplace and the amount of capital it will require to achieve its goals.
Our press release of August 3, 2000 announced that on July 31, 2000, ZTEST acquired an interest in Internet Commerce Solutions Inc. ("ICSI") of Cambridge, Ontario. ZTEST's interest is equal to 54% of the issued capital of ICSI. ICSI provides computer security products and solutions allowing clients to connect their remote offices, and to securely communicate with vendors and customers via the Internet. ICSI analyzes the needs of the client, recommends the approach, and implements the solutions. In conjunction with major software producing companies, ICSI establishes and maintains virtual private networks (VPN’s), firewalls, security audits, authentication and authorization, intrusion and content security. Through its wholly owned subsidiary, T3P Inc., ICSI will generate additional revenues by offering a complete range of services that provide third-party-managed security solutions for clients. This eliminates the need for businesses to retain full time personnel to continually maintain and upgrade their network security systems.
Our press release of August 16, 2000 announced that on August 14, 2000, ZTEST purchased a 60% interest in Permatech Electronics Corporation ("Permatech") of Scarborough, Ontario. Permatech is becoming recognized as a leading Contract Electronic Manufacturer (CEM) in the electronics industry and this strategic alliance will provide ZTEST with additional manufacturing capabilities. This ISO-9002 certified company offers its customers high quality assembling services, including "turnkey", for a variety of products. With access to ZTEST's expertise, Permatech can now offer design assistance and functional testing in addition to its traditional services. The company currently operates within a 14,000 square foot building and it is planning to move to a 20,000 square foot facility in early 2001.
ZTEST also wishes to announce that its Annual Shareholders Meeting will be held on December 5, 2000. The notice of meeting, together with the Management Circular has been mailed to the shareholders.
ZTEST offers Strategic Partner services in electronic design, development and manufacturing capabilities to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.
The current outstanding capital of ZTEST is 21,537,834 common shares.
For further information, contact:
Mr. James E. Lalonde
Manager, Corporate Development
ZTEST Electronics Inc.
Tel. (905) 569-3344
This news release may include statements that constitute forward-looking statements. Please be cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of any number of factors, including risk factors contained in the Company’s disclosure documents.
CDNX HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE