***TO ALL*** Ain't this just peachy.......
Thursday June 11, 4:07 pm Eastern Time
Company Press Release
SOURCE: Saf T Lok Incorporated
Saf T Lok Terminates Employment Agreement with its President, Cancels Laser
Agreement and Cautions Investors Concerning Unauthorized Press Release and Recent
Analysts' Reports
TEQUESTA, Fla., June 11 /PRNewswire/ -- Saf T Lok (Nasdaq: LOCK - news) announced today that it has terminated the employment of its president and
CEO, John Gardner, effective immediately. Mr. Gardner had served as president and CEO since April of 1997. The Company's chairman and founder,
Franklin Brooks, will act as interim president and CEO while the Company conducts a search for a new CEO.
Termination of Agreement with Semiconductor Laser International
The Company also announced that it has notified Semiconductor Laser International Corporation [Nasdaq:SLIC - news] that it has terminated the May 22,
1998 agreement between the two companies with respect to development of a laser-driven fingerprint locking mechanism for use with the Company's
products. Instead, the Company intends to focus its efforts on the continued development of its grip and magazine combination locks, which do not require
batteries or other external power sources.
June 8, 1998 Press Release by United Safety Action
On June 8, United Safety Action (''USA''), an unaffiliated company with which Saf T Lok entered a distribution agreement in February of 1998, released
news claiming that Saf T Lok ''through United Safety Action...'' had entered into a marketing agreement with Enzone USA, purportedly the world's largest
distributor of home safety equipment. The Company wishes to eliminate uncertainty that may have resulted from this release. Saf T Lok is not a party --
through USA or otherwise -- to any agreement with Enzone USA. Further, Saf T Lok did not review or approve USA's release or any agreement entered by
and between USA and Enzone. Indeed, the release by USA without the prior approval of Saf T Lok was prohibited by and thus a breach of the express terms
of the distribution agreement between Saf T Lok and USA.
Saf T Lok cautions investors that claims made in USA's release concerning USA, Enzone, Saf T Lok, and the effect any USA/Enzone marketing agreement
will or might have on distribution of Saf T Lok's products are not the claims of Saf T Lok.
Recent Analysts' Reports
The Company's concern that the USA release could mislead as to the source of the information and claims made therein was borne out by the June 9, 1998
research report published by Chatfield Dean & Co. That report incorrectly attributed to the Company the claim in the USA release that Enzone currently
distributes to over 40,000 retail outlets, including Wal-Mart K-Mart, and Home Depot. The Company's correction of this error should not be construed as
adoption of the remainder of the Chatfield Dean & Co. report, as to which the Company, as a matter of policy, expresses no opinion.
While the Company appreciates and welcomes the fact that securities analysts have initiated coverage of the Company, with respect to the May 27 report of
Woodward Trading Company, the Company endorses the statement in the June 10 issue of the Wall Street Journal - Southeastern Journal (''Stray Advice
Boosts Saf T Lok, But Competition Clouds Outlook'') to the effect that investors should carefully consider the source of such reports. Indeed, the Journal
noted that Mr. Woodward's report has caused the news service that distributed it to consider a review of its distribution policies.
Yesterday's Journal article likewise reported that Mr. Brooks, the Company's chairman, commenting on the Woodward report's overly optimistic 12-month
target price of $30, stated that, ''I would say a $15 stock.'' Today, Mr. Brooks retracted that comment, stating that neither he nor the Company wishes to
make projections concerning the Company's stock price. According to Mr. Brooks, ''The thought I was trying to convey was that had the Woodward report
set a target of $15, that target would not have been as overly optimistic as $30. It was not my intention to predict that the price of Saf T Lok stock would or
should be at any particular level at any particular time.''
Mr. Brooks further explained that, ''Investors should make their own determination about the Company's prospects and stock price based upon the
Company's periodic filings with the Securities and Exchange Commission and its press releases. Moreover, investors should consider all forward-looking
statements, whether presented orally or in writing, in light of the cautionary language concerning competition, consumer acceptance of the Company's
products, the terms and conditions of the Company's distribution agreement, and other factors that could materially affect the Company's results as described
in the Company's public filings and press releases.''
Finally, the Company noted, neither the termination of Mr. Gardner's employment and the laser agreement nor the unauthorized USA news release and the
uncertainty it may have caused can alter the fact that the Saf T Lok(TM) gun locks are the only gun locks on the market that can become an integral part of a
firearm, can safely lock a loaded firearm, yet can be unlocked in seconds -- only by an authorized user. The lock requires no keys, batteries, computer chips
or rings to operate.
This press release contains forward-looking statements concerning the Company's plans to engage a new president and chief executive officer and the
Company's intentions concerning the focus of the Company's effort on development of its mechanical grip and magazine combination type locks and other
matters. Such statements are based on the Company's current expectations. Actual results could differ materially based upon a number of factors, including
but not limited to, availability of executive talent on terms acceptable to the Company, competition and consumer acceptance of the Company's products, and
other factors described in the Company's periodic reports filed with the Securities and Exchange Commission.
SOURCE: Saf T Lok Incorporated |
