CALVERTON, N.Y., Sept. 30, 2004 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR), a provider of pioneering Internet surveillance and event tracking technology, reported today that its Chairman & CEO, Charles A. Cardona, has issued the company's latest operational report to shareholders. The full text of his message follows:
September 30, 2004
Dear Fellow Shareholders:
During September, AdZone Research realized significant progress in both its defense and commercial sectors. On the defense side, General Weaver and Executive Vice President Dan Wasserman, as well as myself, participated in several important meetings with our government customer to secure the next phases of our existing defense-related contract.
In the commercial division, we announced a minimum $2.5 million contract to penetrate the online advertising markets in Asia and Latin America, reported on the launch of a digital piracy initiative with the Justice Fund that could prove to be a very profitable and continuing part of future revenues, and reported on a planned distribution. Earlier this week, we gave further guidance on the Latin America market penetration efforts with the launch of a new online monitoring program.
To put our efforts in perspective, especially as it relates to the defense side of the business, and then, in turn, to the commercial unit, perhaps the following analogy bears careful consideration:
Imagine, for a moment, that the advanced technology we created was a new military style weapon. The government is made aware of its existence, and asks to test it out. They award us a contract, and additional extensions, to enable them to examine the merits of our product from many different viewpoints.
Very quickly, the government concludes that this weapon is extraordinarily accurate, rugged, and shoots with extremely rapid fire. Then, having achieved that critical level of acceptance, and before the weapon can be absorbed into all the defense operations that can best deploy it, the product must be further validated for its effectiveness in a variety of different environments.
Moving to the present, that final validation may take additional weeks, or months, but once its integration has been fully determined, far beyond the test stage we have already passed, then the need for our advanced technology will be well recognized by the level of contractual awards that will follow.
With AdZone's technology achieving this level of critical recognition, especially through its involvement with the U.S. government, it already has proven to be the harbinger of many other opportunities, especially on the commercial front.
We have shared some of those developments with you over the past month, and will continue to do so in the months ahead. Please again also keep in mind that we continue to be in the best financial shape the company has ever been in, with another $750,000 that will be added to our operating capital as soon as the SB-2 is declared effective. Our government contract also has resulted in an extremely credible endorsement, which provides us the opportunity to work directly with additional government agencies, as a subcontractor to current defense contractor partners, as well as with those who may seek out our capabilities in the commercial arena, both directly and in synergistic relationships.
But I repeat again, so all shareholders - both new, and those who have stayed the course with us - may understand clearly, we are concentrating our efforts on immediate revenue generating applications.
In closing, I would like to especially thank those shareholders who have called or written to express their continued support. More than anything, a company is known by its people, and people are known by the company they keep. We're privileged to have your support and patience as we move forward resolutely, keeping the right kind of company with our shareholders.
Sincerely,
Charles A. Cardona III, Chairman & CEO
AdZone Research is headquartered in Calverton, N.Y., in a facility that formerly housed major defense contractor Northrop Grumman Corporation. The facility was earlier used for top-secret defense research and development, and was part of the United States Navy's Naval Defense Technology Center.
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.