NEW YORK, June 15, 2004 (PRIMEZONE) -- Barrow Street Research, an online research firm, today reported that it has issued an updated progress report on AdZone Research, Inc. (OTCBB:ADZR).
"We initiated coverage of AdZone Research in October 2002," said the firm's founder, John D. Attalienti. "In that report, we noted the huge potential for the company, based primarily on our belief that ADZR possessed the technical expertise to permit users of its NetGet(tm) product to scan the Internet for terrorist activity...
"To that extent, in the most significant development since we have followed AdZone, is the company announcement in May that it had 'signed an agreement with a major U.S. government entity, calling for the supply of data from its NetGet(tm) Internet surveillance technology.' To be sure, there were no dollar amounts attached to this announcement, given the sensitivity of the subject matter. Still, the fact that a 'U.S. government entity' has seen fit to use ADZR's technology now provides, in our opinion, tremendous credibility of the company's prime product offering," the analyst notes.
"It's not unreasonable," the report continues, "to therefore conclude that this was a huge marketing coup for ADZR, and that it will provide wider exposure for the company's technology. Another important development for ADZR is the recently announced private placement of equity for up to $1,750,000 in new funds, $1,000,000 of which has now been received, with an additional $750,000 available at the company's discretion. This capital infusion will permit the implementation of a business plan that incorporates the making of accretive acquisitions in the months immediately ahead."
The report adds that, "We rate ADZR a strong buy." Supporting that conclusion, the report points out, are key developments such as the fact that, "The Sept. 11 terrorist attacks on the United States have created a wave of new government spending, reminiscent of the space program in the 1960s or the savings and loan bailout of the 1980s. According to the Homeland Security Research Corporation, spending on homeland security is expected to grow to more than $170 billion by 2006, up from $100 billion in 2003."
Barrow Street Research also cites the much more involved role of Major General (ret.) Paul Weaver as a member of ADZR's advisory board, which it believes, "has given the company substantial new assistance in helping to accelerate both funding and contractual events." The analyst adds, "We have often mentioned in our research reports that management is one of the most important factors in determining whether a micro cap company can succeed in achieving its business plan and growing into a larger entity. In the case of AdZone Research, we credit management with being able to navigate through difficult periods and bringing the company to the position that it's in today. In conclusion, we would offer the opinion that when the ADZR shares reached a 52-week intra-day high of $1.35 in late January, the company's fundamentals were not as solid as they are today. Since that time, the company has announced new products, obtained new financings, and most importantly obtained a contract with a federal government entity to supply technology services. Therefore, we believe it's reasonable to conclude that the current share price represents an excellent buying opportunity for those high risk investors seeking long-term capital gains."
A full copy of the report is available at http://www.barrowstreet.com. AdZone Research has compensated Barrow Street Research with 5,000 restricted shares of the company's common stock for its time spent in preparing this updated report.
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.