November 22, 2001 - ZTEST ELECTRONICS INC. FY2001 RESULTS AND STATUS UPDATE
NORTH YORK, ONTARIO--ZTEST Electronics Inc., YZT-CDNX, ("ZTEST" or the "Company"), wishes to announce its financial results for the fiscal year ended June 30, 2001. While the total revenues for the year grew to $5,882,252, representing an increase of 235% comparing to fiscal year 2000 levels, the loss from operations increased to ($1,890,144) from ($690,842) in fiscal year 2000, first and foremost due to an accelerated amortization of goodwill.
Over the last four years, ZTEST successfully developed a number of products for its strategic partners. The best known is probably BingoTrax(TM), a system to monitor and account for the sales of media bingo tickets developed for Gametele Systems Inc. ("Gametele") of Mississauga, Ontario. Due to changes in market conditions and/or the inability of our partners to raise sufficient financing on their own, none of these products was established as an industry leader in the respective markets where our strategic partners operated. That is why, faced with uncertainty of their future recovery, all remaining investments and advances to our strategic partners were written off as of June 30, 2001 resulting in further losses of $6,935,971. This does not mean, however, that the Company is not expecting recovery of its investments at all; it is rather the reflection of its inability to precisely predict when and how much may be recovered. For example, with the currently pending take-over of Gametele by Dion Entertainment Corp. of Vancouver, BC, as disclosed in our press release of October 30, 2001, ZTEST looks forward to a larger scale implementation of BingoTrax(TM) networks.
As disclosed in our press release of September 4, 2001, ZTEST is in the process of acquiring the remaining equity interest in Permatech Electronics Corporation ("Permatech") of North York, Ontario. The Company has received conditional approval from CDNX for this transaction, including the proposed valuation method for the interest to be acquired, and it is shortly going to ask for its shareholders' approval. Providing that such shareholders' approval will be received and the acquisition concluded with the final approval from CDNX, ZTEST will consolidate its operations with Permatech and continue operations in the EMS industry.
The Company also wishes to announce that, effective November 15, 2001, it has relocated its operations from Mississauga to Permatech's North York facilities. The current Company's address is:
523 McNicoll Avenue North York,
Ontario, Canada M2H 2C9
Tel: (416) 297-5155
Fax: (416) 297-5156
The current outstanding capital of ZTEST is 24,071,167 common shares.
FOR FURTHER INFORMATION PLEASE CONTACT:
ZTEST Electronics Inc.
Mr. Ted Drzazga President & CEO
CDNX HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.