ROVC
ROCHDALE, Mass.--(BUSINESS WIRE)--May 16, 2000--ROVAC Corporation
(OTC:ROVC), a developer of proprietary pipe connecting devices and
patent holder for CinchLock(R) and CinchFree(TM) technology, and NIBCO
Inc., Elkhart, Ind., today announced a new exclusive worldwide
agreement for all thermoplastic products using CinchLock(R)
technology.
This agreement replaces a previous agreement and establishes NIBCO
as the sole licensee for all markets, globally, employing
thermoplastic fittings, valves and pipe. Further, for the first time,
NIBCO has the right to negotiate with third party companies worldwide,
to either license or sell rebranded products utilizing CinchLock(R)
technology and components. A prepayment fee for market exclusivity and
purchases of key components are elements of the agreement. However,
the companies did not divulge the financial details, other than to say
the value of the agreement was in the multi-million dollar range.
Key components of CinchLock(R) and CinchFree(TM) are being
manufactured by ROVAC in Massachusetts. A license fee is paid for each
grip ring shipped for incorporation in NIBCO products or third party
products including rebranded products worldwide for all thermoplastic
markets.
"Based on NIBCO's successful experience in the marketplace for
over a year, we have signed an exclusive worldwide agreement for all
thermoplastic products for all markets up to 2" in diameter. In the
agreement are guaranteed prepaid license fee and royalties, which will
increase our company's revenues for at least the next 4-5 years. NIBCO
will have first right of refusal to expand the agreement beyond 2" in
diameter in a future agreement," stated R.E. Shea, Jr., ROVAC Vice
President. He further noted, "Under the agreement NIBCO has the
right to license CinchLock(R) technology to third parties and/or to
sell rebranded TruConnect(TM) product. Their activity will free-up
ROVAC management and allow us to focus on new product development and
the pursuit of additional agreements for metals technology,
applications and markets," concluded Shea.
NIBCO is a privately owned Forbes 500 company with 11 separate
manufacturing centers throughout the U.S., Mexico and Poland. Its
3,300 employees make NIBCO a major worldwide provider of plastic
flow-control, irrigation, air-compression and other construction
products. Their product lines focus on pipe, fittings, and valves.
TruConnect(TM) is the NIBCO trademark for CinchLock(R) technology
products.
The ROVAC Corporation is a product and technology development
company headquartered in Rochdale, Mass. CinchLock(R) and
CinchFree(TM) are trademarks of The ROVAC Corporation. All
forward-looking statements are made within the "Safe-Harbor" clause of
the Private Securities Litigation Reform Act of 1995. For additional
information go to website cinchlock.com.
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CONTACT: ROVAC Corporation
Raymond Shea Jr., 508/892-1121
cinchlock.com |
