BELMONT, Mass., Jan. 11, 2006 (PRIMEZONE) -- Kronos Advanced Technologies, Inc. (OTCBB:KNOS) today announced the execution of a License Agreement with EOL, LLC, a Russian Federation corporation. Based in Korolev, Moscow Region, Russia, EOL will leverage the Kronos technology to produce, market, and distribute Kronos commercial air purification products, bacteriological and virus destruction devices and space heaters in select Commonwealth of Independent States. The agreement comes after successful completion of multiple tests in Eastern Europe, which found the Kronos technology capable of decontaminating rooms infected with airborne viruses and bacteria. Specific financial terms of the agreement were not disclosed.
"Kronos is committed to delivering air purification, filtration and airborne disease-destruction solutions to the world through our technology," said President and Chief Executive Officer Daniel R. Dwight. "The international agreement with EOL represents a continuation of that strategy, across a market where there is a clear and viable need and with a partner that has the necessary expertise to produce and distribute those products."
Under the terms of the five-year agreement, EOL will provide Kronos a fixed percentage royalty on every product sold, as well as upfront licensing and quarterly maintenance fees. Based on contractual milestones, EOL is required to:
-- Complete initial product design by March 2006;
-- Complete initial product prototypes by June 2006; and
-- Make product available for customer purchase by
September 2006.
EOL plans to assemble the finished products in Russia from components supplied both locally and from contract manufacturers in China. The products will be marketed and distributed in Russia, Ukraine, Kazakhstan, Moldova and Byelorussia.
"Based on successful testing of the Kronos technology at the Institute for Veterinary Medicine in the Ukraine and the Disinfection Research Institute Sterilization Laboratory in Russia, we believe the Kronos air purification technology is unmatched," said Dr. Dvorkina Evgenia, EOL Chief Executive Officer. "We are delighted to be working with Kronos to license, manufacture and market solutions and products that will provide enhanced protection from airborne disease and help people live healthier and safer lives."
The agreement comes amidst rising concern about poor air quality and airborne disease, and a series of new reports that Avian Flu has emerged in humans and animals in various parts of Turkey. In addition to the nine confirmed cases to date, some 50 other people suspected of having the disease have been hospitalized, at least 30 in the Van area and about 20 in Ankara, according to a spokesman from the Ministry of Health in Turkey.
Dr. Mikhail Shandala, Director of the Disinfection Research Institute Sterilization Laboratory and a world-renowned Russian scientist who oversaw the most recent Kronos testing in Moscow noted, "It is clear that medical providers, and those concerned with preventing the spread of airborne disease, bacteria and infection, will want to look toward Kronos as a solution. The benefits of the Kronos technology will help medical organizations fight the spread of in-hospital infection, decrease the hospital stays and reduce patient treatment costs."
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos Advanced Technologies has developed a new, proprietary air movement and purification system that utilizes state-of-the-art high voltage electronics and electrodes to silently move and clean air without any moving parts. Kronos is actively commercializing its technology for standalone and embedded products across multiple residential, commercial, industrial and military markets. Kronos' technology is versatile, energy- and cost-efficient and exhibits multiple design attributes, creating a broad range of applications. The Company's business strategy includes a combination of building internal capabilities, establishing strategic alliances and structuring licensing arrangements. Kronos Advanced Technologies is located in Belmont, MA. More information about Kronos Advanced Technologies is available at www.kronosati.com.
About EOL, LLC
EOL is a Russian corporation formed for the purpose of manufacturing, marketing and distributing air purification products based on technology licensed from Kronos Air Technologies, Inc. EOL is owned and operated by Dvorkina Evgenia. Dr. Dvorkina is an entrepreneur who has extensive production, marketing and sales experience with commercial products in Ukraine and the Russian Federation. EOL is financed by Sberbank (the largest Bank in Central and Eastern Europe) - www.sbrf.ru/eng/.
The Kronos Advanced Technologies, Inc. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1888
Forward Looking Statements
With the exception of historical information contained in this press release, this press release includes forward-looking statements and comments. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond the Company's control. Forward-looking statements, by their nature, involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance. Other risks are summarized under the caption "Factors Affecting Kronos' Business and Prospects" in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2005 as filed with the Securities and Exchange Commission.