KOSTECH SMALLCAP RESEARCH RELEASES BULLETIN ON ALPHA PRO TECH
SALT LAKE CITY--March 25, 1997--Alpha Pro Tech (OTC:BB:APTD) is a leading
manufacturer of disposable protective products for the medical, food service,
clean room and consumer markets.
The company has invested large amounts of capital acquiring subsidiaries
over the past several years, which have enhanced their product line.
The synergistic benefit of these acquisitions will be evident this year.
Their apparel division makes synthetic disposable caps, gowns, coveralls
and shoe covers primarily for clean room environments.
Their medical/dental division focuses its energy in the production of face
masks and eye shields for all types of health care workers. APTD's wound
care segment manufactures bed and wheelchair pads for hospital patients
who are at risk of contracting bedsores and other skin afflictions.
The company maintains corporate offices in Markham, Ontario, with
manufacturing facilities in both the United States and Mexico. Long-term
clients include such well known companies as Baxter and VWR Scientific
Products for Intel and Motorola.
The company's products may be viewed at alphaprotech.com .
The real area of opportunity lies in Alpha Pro Tech's new Aqua Trak Black
(TM) shoe cover, which is made specifically for applications in the fast
food industry. It is through their food service segment that APTD recently
started manufacturing this proprietary non-skid, black, shoe cover for
use by fast food employees.
One major restaurant chain has recently placed a large order for this
product, and the company anticipates more following this year as marketing
efforts are increased and the product gains further awareness.
Some points to take into consideration when evaluating this opportunity are:
--Untapped market: Up to 85 percent of workman's compensation claims
are attributed to employees slipping on slick floors. This has created
a potential $1 billion market that is virtually untapped.
--Safety: The National Safety Council estimates that the compensation
and medical costs associated with employee slip and fall accidents is
approximately $70 billion annually.
--Insurance: Since insurance companies must pay out large sums of money
for slip/fall accidents, any method to reduce these payments becomes
very attractive.
--Government Demand: During the past few years, the Occupational Safety
and Health Administration (OSHA) has been aggressively levying fines.
--Efficient: The Aqua Trak (R) is disposable and inexpensive, cost being
around 35 cents a pair.
--Shoe Protection: The Aqua Trak's unique non-stitched, laminated design
and its elasticized ankle seal combine to protect the employee's shoes
(an important issue for a person earning minimum wage while wearing $100
pair of Nikes) which is attractive to the employee.
The Aqua Trak Black (TM) is patent pending and is already being tested on
the market in a number of fast food restaurants. Acceptance, thus far,
has been very favorable. Hardee's, a major restaurant chain with 3,500
stores, has decided to utilize the shoe covers as a part of their safety
program having recently placed an initial order for around 250,000 units.
Dan Turman, safety consultant for Hardee's (R) Food Systems Inc., stated,
"During the testing period, the employees had no slips or falls while they
were using Chix (R) Aqua Trak Black (TM) shoe covers, and the employees'
reaction to the product was outstanding. The employees also appreciated the
added benefit of their shoes remaining clean while wearing the product."
Exclusive marketing and distribution channels for the Aqua Trak Black
(TM) are in place with Chicopee Inc., a unit of PGI Nonwovens (NYSE:PGH),
which services the food industry. The product may be seen at Chicopee's
site at chixtowels.com .
APTD maintains a favorable outlook with the continuation of strong
performance from the apparel division, where further growth is anticipated.
New products are also being introduced in the Unreal Lambskin (R) area in
which the company expects sales to improve in the months ahead. The company
expects bottom line earnings later this year and will have updates as
events occur. NOTE: Copyright (c) 1997 by Kostech SmallCap Research All
Rights Reserved. Kostech SmallCap Research is an independent research
firm that produces research bulletins. These bulletins are derived from
many sources believed to be reliable, although no guarantees are made as
to the accuracy and completeness of the information.
The information in this bulletin is not intended to be and shall not
constitute an offer nor solicitation to buy or sell securities. Investors
are advised to contact the company as well as their broker or financial
advisor before making any investment decision. This company that Kostech
has previously reviewed to our paid subscriber base has recently retained
Kostech for the purpose of updating Kostech's free subscribers on company
progress and development.
CONTACT:
Alpha Pro Tech Ltd., Salt Lake City
Donna Millar
905/479-0654
alphaprotech.com |
