CALVERTON, N.Y., July 19, 2005 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR) today issued the company's latest operational report to shareholders. The full text of Chairman & CEO Charles Cardona's comments follows:
July 19, 2005
Dear Fellow Shareholders:
Now that we have been able to file our Form 10-KSB annual report for fiscal 2005, I wanted to share with you our appreciation for all the messages of support from shareholders over the past week, as the valuation of our stock was under considerable pressure. For those who expressed other opinions, that's what makes this country so great, and we hope to satisfy everyone's mutual goal for a bright future for our company.
As reported in our year end filing, we have been working very hard on many fronts. We're pleased our revenues increased more than four times over fiscal 2004, but are certainly not content to stand there, focusing on greater growth and achieving profitability.
Toward that end, we expect to announce in the near future that the company has secured a funding commitment in excess of $10 million to pursue strategic acquisitions that will immediately improve our top and bottom line results.
I personally can assure you that the success of AdZone is one of my paramount goals. The bulk of my personal assets, as well as many long hours and love, are invested in this great company. Everyone at AdZone really believes in what we are doing, and that it transcends merely a place where many of us work days, nights and weekends.
All of us here know how important what we are doing really is, and we really believe we are making significant contributions to the safety of our families, friends and neighbors. Every day we go to work knowing that this is a very noble cause. We also feel no shame in working as hard as we can to enable our shareholders to profit fairly by performing this service for our country. Were it not for profit and competition, there would be no innovative solutions.
We were pleased to distribute last week the dividend of Senticore shares. And please remember there is a second part to the dividend -- warrants for Senticore shares which, once registered and provided by Senticore, we also shall be distributing.
The recent months have been extremely trying on all of us. But I am sure as fellow shareholders you are pleased to see that our revenues in fiscal 2005 have increased four fold over the prior fiscal year. And we hope that by the end of our fiscal 2006 our revenue levels will far outpace those of the past years.
Although we were overly optimistic in our belief that we would secure commercial and defense commitments by the end of last month, we nevertheless remain very encouraged by the progress -- admittedly slower than anticipated -- with our efforts to increase our defense contract wins.
Our ability to reach the highest levels of decision making in the U.S. Government are very much a reality. That has been made possible by General Weaver's unflagging efforts, and we believe that our technology will soon receive the recognition it deserves.
Recent tragic events abroad, the announcement of an overhaul of the Department of Homeland Security, and proposed legislation to increase federal government spending with small businesses from 23 percent to 25 percent are all factors affecting the future of AdZone. The war on terrorism impacts us all, and will for the foreseeable future. Given these realities, we believe our technology will prove of value and importance in helping combat terrorism.
While we pursue defense-related contracts, we continue to find ways to deploy our technology in complimentary areas such as anti-piracy, cyber-security and sexual-predator tracking.
Additional meetings with decision makers in the motion picture industry have been held. We remain confident that in the months ahead we will be able to enter into relationships with all levels of participants in this industry.
As I said at the beginning of this report, and as referenced in the 10-KSB, the company is also aggressively pursuing an acquisition strategy to bring synergistic companies and greatly increased revenues and profits into AdZone in the very near future.
As part of that process, AdZone also has developed an updated strategic business plan that incorporates an aggressive sales strategy in the defense area of its business. The plan also includes strategic alliances and acquisitions, and to that end AdZone has retained a consultant group with considerable experience in the field of acquisitions and integrations of acquired companies. This firm's experience also includes multiple acquisitions and successful post-acquisition integration, primarily in research and defense company management organizations. This is expected to help AdZone in its goal of completing strategically valuable acquisitions in the near future.
Finally, we regret that last minute efforts to complete our 10-KSB filing by its deadline forced a delay of our planned conference call. As soon as possible, we will announce the date, time and caller information for the rescheduled conference call.
Your continued support of AdZone has never been more vital, or more appreciated.
Sincerely,
Charles A. Cardona
Chairman & CEO
Through monitoring of more than 500,000 Web sites worldwide, AdZone provides tracking and monitoring of targeted information on the Internet, with an expanded focus on global Internet analysis of security-related data transmissions. For additional information, please visit the company's Web site at http://www.adzoneresearch.com. Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.