CAMARILLO, Calif., Nov. 13, 2003 (PRIMEZONE) -- Quintek Technologies, Inc. (OTCBB:QTEK) today announced that it has successfully restructured roughly $600,000 of its outstanding liabilities.
Agreements have been put in place to reduce outstanding convertible debt by more than 75%. The debt will be reduced from over $342,000 down to approximately $75,000.
In January of 2003, when new management was brought into Quintek, employees and the prior management team signed agreements to convert $252,213 into preferred stock at a rate of ($0.25) twenty-five cents per share. Company vendors have agreed to convert $98,955 in outstanding past due payables into $78,560 of 8% three year promissory notes.
"This represents a milestone achievement for Quintek," stated Andrew Haag, Quintek's Chief Financial Officer. Haag continued, "This dramatic reduction in our liabilities will be evident in our financial statements and will allow the company to grow more effectively. Quintek will now be able to focus on growth by building revenues through increased sales efforts coupled with a solid product and business development strategy."
About Quintek
Quintek is the only manufacturer of a chemical-free desktop microfilm solution. The company currently sells hardware, software and services for printing large format drawings such as blueprints and CAD files (Computer Aided Design), directly to microfilm. Quintek does business in the content and document management services market, forecast by IDC Research to grow to $24 billion by 2006 at a combined annual growth rate of 44%. Quintek targets the aerospace, defense and AEC (Architecture, Engineering and Construction) industries.
Quintek's printers are patented, modern, chemical-free, desktop-sized units with an average sale price of over $65,000. Competitive products for direct output of computer files to microfilm are more expensive, large, specialized devices that require constant replenishment and disposal of hazardous chemicals.
"Safe-Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Quintek to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in Quintek's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2002 and any subsequent reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Quintek assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.