Shareholders Approve Name Change from Watson General to USTMAN
Technologies, Inc.
Change Reflects New Cote Business Focus on SIR
LAKEWOOD, Calif.--(BUSINESS WIRE)--Feb. 3, 1998-- Shareholders of Watson General Corporation (Nasdaq:WGEN - news) at its annual meeting held on January 28th in Denver, Colorado approved the change of the company's name to USTMAN Technologies, Inc. (USTMAN). The company's common stock will continue to be traded on Nasdaq under the
symbol WGEN.
USTMAN is the leading provider of statistical inventory reconciliation (SIR) services in the United States.
''This change was desirable to reflect the new focus of the company since the combining of USTMAN and Watson General in
mid-1997 and the subsequent disposition of non-SIR businesses,'' said Dan R. Cook, President and CEO. ''USTMAN has been the #1 company in the SIR market for several years and its reputation for quality in the industry is unexcelled.''
At the annual meeting, Mr. Cook reported these highlights of the prior year:The #1 and #2 providers of SIR, USTMAN and Watson General, merged to create the undisputed industry leader in IR, and later acquired the #4 provider, ATC. As a result of these actions, the number of underground storage tanks (USTs) under management by the new USTMAN has grown to more than 54,000 USTs. USTMAN eliminated its non-core businesses, divesting Toxguard Fluid Technologies and discontinuing Toxguard Systems.
The company consolidated all operations of the original USTMAN, Watson General and ATC at its Lakewood, Colorado headquarters, upgrading executive management capabilities and resulting in an estimated aggregate annual cost savings of $2.2 million.
USTMAN raised $6.0 million in private equity capital from Sagaponack Partners, L.P., to finance the original merger, and secured $6.0 million in an acquisition financing line from BankBoston, a portion of which was used for the ATC acquisition.
Mr. Cook concluded, ''We believe the company is in a strong position to continue its momentum and significantly increase revenue and enhance profitability by capitalizing on the December 1998 EPA regulatory compliance deadline, expanding its international presence, selectively acquiring other SIR providers within the fragmented SIR market, and expanding its product portfolio in order to leverage the growing customer base.''
USTMAN Technologies, Inc. with more than 54,000 underground storage tanks under contract is the largest provider of critical information to owners of underground storage tanks through SIR and remote tank monitoring. SIR is a preferred method of detecting leaks in storage systems and of managing liquid inventory held in storage tanks. It is fully approved for purposes of compliance with EPA leak-detection regulations, which cover nearly every UST in the United States.
NOTE TO EDITORS:
Except for the historical information contained in this Release, the other statements in this Release are forward looking statements that involve risks and uncertainties, including without limitations, the company's ability to sell its products, the timely negotiations of new contracts, the level of increased sales with existing customers, as well as such other risks as from time to time may be detailed in the company's Securities and Exchange Commission reports.
Contact:
Dan Cook, President, (800) 253-8054
Bruce Russell, Investor Relations, (310) 216-1414
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