NanoPierce Technologies, Inc. Announces Financial Restructuring
DENVER--(BUSINESS WIRE)--April 2, 2003--NanoPierce Technologies, Inc. (OTCBB:NPCT) today announced that it had implemented a major financial restructuring of the Company and its subsidiaries.
Responding to the continuing challenge presented by today's business and economic environment, the Company and its subsidiaries laid off 55% of its work force, implemented additional salary reductions and eliminated or reduced leasehold expenses in an effort to further reduce its overhead and cash burn rate. The Company estimates that because of these and other actions, consolidated overhead has been reduced by approximately 40% to 50%. The remaining employees are capable of carrying forward the business activities of the Company and the core competencies of the management and staff team have been retained.
The conditions prevailing in the financial markets and the global semiconductor market presented the Company with little alternative but to implement cost-saving changes in order to enhance its ability to weather the current environment.
As part of the changes implemented by the Company, NanoPierce Card Technologies, GmbH, due to the requirements of German law, was placed into receivership. The Company had contemplated the possible dissolution of NanoPierce Card Technologies, GmbH as part of a plan to simplify operations in Germany.
The Company intends to focus all activities in Germany into NanoPierce's other German subsidiary, ExypnoTech GmbH, which remains unaffected by the receivership of NanoPierce Card Technologies, GmbH. However, expansion of these activities is heavily dependent upon the Company or ExypnoTech obtaining sufficient financing.
NanoPierce's U.S. subsidiary, NanoPierce Connection Systems, Inc., will continue its pursuit of the WaferPierce(TM) opportunity along with other, on-going efforts to commercialize NCS(TM) with industry leaders. The subsidiary will also increase the emphasis given to projects producing shorter-range revenue. Certain former employees have agreed, on request, to assist the Company on a consulting basis on these business activities.
The Company also continues to pursue financing for its business operations.
Paul H. Metzinger, President and Chief Executive Officer of NanoPierce Technologies Inc., stated: "Regrettably we had to implement this financial restructuring but it was made necessary by existing economic conditions. Tough as it might be, we exercised the discipline required to better enhance the prosperity of the Company."
ABOUT NANOPIERCE TECHNOLOGIES, INC.
NanoPierce Technologies, Inc., of Denver, Colorado, USA, is traded on the NASDAQ stock market (OTCBB:NPCT) as well as on the Frankfurt and Hamburg exchanges (OTC:NPI). In addition to the 12 patents it owns, NanoPierce has numerous applications pending, others in preparation, and various other intellectual properties related to NanoPierce's proprietary NCS(TM) (NanoPierce Connection System). This advanced system is designed to provide significant improvement over conventional electrical and mechanical interconnection methods for high-density circuit boards, components, sockets, connectors, semiconductor packaging and electronic systems.
ABOUT NANOPIERCE CONNECTION SYSTEMS INC.
NanoPierce Connection Systems, Inc., is a 100% subsidiary of NanoPierce Technologies, Inc., located in Colorado Springs, Colorado. NanoPierce Connections Systems, Inc., has been chartered to undertake high-volume production WaferPierce(TM), a revolutionary and enabling semiconductor wafer treatment for ultra-low cost flip-chip without the necessity of wire bonding, conductive adhesives, or soldering. Typical end-use applications of WaferPierce(TM) include Smart Labels, Smart Cards, and LED arrays.
ABOUT EXYPNOTECH GmbH
ExypnoTech GmbH is a 100% subsidiary of NanoPierce Technologies, Inc., located in Rudolstadt, Germany. ExypnoTech develops, produces and markets components for the RFID market worldwide. In its production of smart inlays, the Company employs flip chip processes based on NanoPierce Technologies patents. For further information on ExypnoTech, log on to www.exypnotech.com.
CONTACT: NanoPierce Technologies, Inc.
Paul H. Metzinger, 303/592-1010
Fax: 303/592-1054
paul@nanopierce.com
or
NanoPierce Connection Systems Inc.
Dr. Herbert J. Neuhaus
Phone: 719/638-5930
Fax: 719/638-5933
herb@nanopierce.com
or
ExypnoTech GmbH
Dr. Michael E. Wernle, + 49-8102-896140
Fax: + 49-8102-896141
michael.e.wernle@exypnotech.com
or
Bernhard Maier, + 49-3672-478-270
Fax: + 49-3672-478-274
bernhard.maier@exypnotech.com
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