VANCOUVER, Wash.--(BUSINESS WIRE)--Feb. 25, 2000--Leo Ehrlich, President of Saliva Diagnostic Systems, Inc. (OTC BB:SALV) announced today that the company's new management has begun to implement its business strategy. Effective immediately, the company has closed its manufacturing facility in Vancouver, Washington and will layoff all of its employees at such facility. In addition, Stefan L. Paskell, Executive Vice President of the Company resigned on February 15, 2000.
The Company is in negotiations for the outsourcing of its production to fill existing and future orders. Mr. Ehrlich said, ``In our industry there are contract manufacturers who have invested millions of dollars in state of the art FDA approved facilities. Outsourcing will diminish the Company's cash needs as well as allow more aggressive pricing in a competitive world market.'
Management's new strategy includes actively pursuing the licensing of its patented Capillary Barrel System to other companies on a royalty basis.
The Company recently received the results of clinical trials performed at the Walter Reed Army Hospital on over 10,000 serum samples using the company's Hema-Strip© HIV 1/2 product. The results indicated that Hema-Strip© HIV 1/2, when used with serum, to be at least 99.8% accurate in sensitivity and 99.9% in specificity.
The Company is actively seeking to resolve various pending claims and has settled various outstanding debts over the last several months. In January 2000, the Company settled the claim of Ronald Lealos, which was pending in the Superior Court of the State of Washington for the sum of $246,000, payable in installments.
The Company's cash needs are met by sales of its products and by the issuance of preferred stock on similar terms to its previous financing.
The Company is in the process of preparing its unfiled Forms 10-QSB's for the periods June 30 and September 30, 1999. The Company is unaware of the basis for the recent rise in volume and price of its stock.
For more information on SALV, please visit the Company's Web site at www.salv.com |
