Toronto, Canada (September 4, 1998) - KING
Products Inc. (CDN: KINK) today announced that strong growth in business volumes for its
Internet-related, public computing products during 1998 requires the Company to access
additional capital from new investors.
"Sales doubled to $7.6 million during the
six months ended June 30," said Richard Reid, Chairman of the Board. "Our
working capital is not sufficient to meet the dramatic increase in business volumes. This
growth, as well as non payment of overdue accounts receivable from Asian trading partners,
has created difficulty for the Company in satisfying all of its current obligations."
"We are taking some necessary steps to
increase the Company's working capital in response to constraints on liquidity that we are
now experiencing. The Company is actively seeking further financing and is in discussions
with a number of parties, including potential strategic partners," he said.
To facilitate a refinancing, KING Products is
taking steps to reposition its current business into two separate units - one to handle
its architectural design and manufacturing business and the other to manage its public
computing and communications business. The new subsidiary for public computing and
communications has been named Public Computing and Communications Interactive or PCC
Unrelated to the foregoing, Peter Richards has
resigned to accept a senior executive position with a large software company. Mr. Richards
will remain a director of KING Products.
About KING Products
KING Products designs and builds public computing
systems that allow individuals to access the Internet from public locations. The Company's
products integrate computer, telephony and multimedia technology into stand-alone systems.
In addition to Internet access, these systems allow users to access e-mail, e commerce and
e yellow pages, as well as other fax, data and voice communication services.
KING Products' growing customer list includes
such international companies as British Telecom for whom it has developed a line of public
computing payphones. One thousand of these systems will begin to be deployed throughout
Britain later this year.
The Company has received firm purchase orders
from Canada Payphone Corporation to provide its new public computing payphones for use by
AT&T Canada Long Distance Services. These systems will provide Canadians with public
access to the Internet, public computing and other leading edge telephony services. These
systems will be deployed into hotels, airports, train stations, convention centers and
other selected locations across Canada this year.
The Company's products can be found at Ambest
truck stops across the USA, the new Hong Kong Airport, the Toronto Eaton Center,
Philadelphia Airport, Dulles Airport, the Port Authority of New York and New Jersey and
the Conference Center in North Vancouver.
For more information please contact:
Howe & Company Inc.
Newsbit furnished by:
A: NetShift Software Ltd.
A: Hughenden Yard, Marlborough, Wilts,SN8 1LT, UK
T: +44 (0)1672 511 094
F: +44 (0)1672 511 078
E: [email protected]