BELMONT, Mass., May 16, 2006 (PRIMEZONE) -- Kronos Advanced Technologies, Inc. (OTCBB:KNOS) President and Chief Executive Officer Daniel R. Dwight today announced that during the third fiscal quarter ended March 31, 2006 the Company continued to make significant advances and remains on track for getting its proprietary technology into the product production stage for marketing by its strategic partners.
Business Highlights
Commercial Products. Kronos' Russian business partner, EOL, LLC, successfully achieved the first milestone in developing Kronos-based air purification devices for medical facilities and is currently ahead of schedule as EOL manages toward a product launch in the Fall of 2006. EOL has completed the product design and initiated product development. Having completed the electronics and purification arrays in conjunction with Kronos, EOL is positioned to begin product certification by the Russian Research Institute of Medical Equipment for use of the Kronos-based products in medical facilities, the first such certification to be received for the Kronos technology.
Residential Products: Several leading global home appliance manufacturers initiated discussions with Kronos with an interest in using the Kronos technology for developing select consumer applications, including silent kitchen range hoods and vaporizers. With specific customer input, Kronos is designing and developing prototypes for additional customer demonstration and evaluation. This effort is an expansion of our work to date with HoMedics, IKEA and others.
Transportation Products -- Airline: Kronos extended its work into the transportation industry by being invited to serve as a member and an industrial partner in the Federal Aviation Administration's (FAA) Air Transportation Airliner Cabin Environment Research Center of Excellence (ACER CoE). In this capacity, Kronos will provide its real-time decontamination, air filtration, purification and technology expertise to evaluate and develop solutions that proactively address and improve cabin air quality. The program, led by the FAA, includes senior executives from aerospace equipment manufacturers and leading American universities.
Financial
For the first nine months of fiscal 2006, the Company's wholly owned subsidiary Kronos Air Technologies, Inc. continued to make investments in product development across both commercial and consumer standalone product applications and residential and transportation embedded product applications, as well as for business development activities to further expand the Company's base of new potential strategic partners. The increased activity led to an increase in operating expenses to $2,234,000 for the nine months ended March 31, 2006, compared with $1,733,000 in the corresponding period the year before. The net loss, however, decreased for the nine months ended March 31, 2006 to $2,629,000 compared with $5,945,000 for the corresponding period as the Company incurred a non-recurring charge ($3,857,000) associated with refinancing during the prior period. Revenues were $37,500 compared with $430,000. The decrease in revenue resulted from decreased reliance on military funded projects and an increased focus on residential, consumer and commercial applications.
Details of the Company's results can be found in its quarterly report filed March 15, 2006 on SEC Form 10-QSB, or at www.sec.gov or at www.kronosati.com .
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.
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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 "Certain Business Risk Factors" 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.