CALVERTON, N.Y., June 13, 2006 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR) reported today that its President and CEO, Jeffrey M. Hale, has issued the company's latest operational report. The full text of his message follows:
June 13, 2006
Dear Fellow Shareholders and other interested parties,
We're keenly aware of the need for an operating update, and thank you for your patience. It has been just over a month since Terry Kent and I took over the leadership of AdZone. We think it is a company of great ideas, and represents a great business opportunity for AdZone to successfully execute against those ideas. To support that belief, we want to take this opportunity to tell you about our objectives, and our focus, and to report to you the progress we have made so far.
Terry and I have been managing information technology companies for our entire careers and, based on that experience, our near term objectives for AdZone are straightforward. We are focused on developing a growing, renewable revenue stream that brings AdZone into an ongoing positive cash flow position. Secondly, we are focused on ensuring one hundred percent SEC compliance. Finally, we are also committed to providing information to the public that makes our company as transparent as reasonably possible. We are making a lot of progress. Here is what we have accomplished so far:
-- Press Releases. We immediately developed a new approach for our
press releases. We think that communicating about AdZone is
important. We also think that making our press releases
consistent, information intensive and transparent is equally
important.
-- Internal Controls. We are strengthening formal and structured
internal controls, including financial controls. We are doing
this both because we believe the business should be as structured
as possible, but also to provide the infrastructure necessary to
manage an increasing level of customers and business.
-- Management Reporting. We are implementing stronger and more
structured management reporting, including internal financial
management reporting beyond that filed with the SEC. We believe
this is necessary to manage our business well today, and
especially as we grow in the future.
-- Financing Facilities. We are in the process of restructuring our
financing facilities to help ensure we have the capital necessary
to achieve a positive cash flow position.
-- OPPS. We are very focused on our Online Predator Profiling System
(OPPS) tool for law enforcement organizations to monitor Internet
chat rooms. The system works well, it makes a meaningful
contribution to our communities, and we believe that it is the
highest business potential for revenue we currently have. To
support this we have several initiatives in process:
We are developing a coordinated near term marketing and sales
program. The initiatives include a direct sponsorship program to
provide OPPS to law enforcement organizations, sponsorship to law
enforcement organizations through third party not for profit
organizations, and direct sales to law enforcement organizations.
The response from law enforcement organizations to our
sponsorship program has been encouraging and a bit overwhelming.
We have more law enforcement organizations that want our OPPS
system than we have sponsors. As a result, we have increased our
focus on directly signing up both national and local sponsors.
We have developed very positive relationships and agreements with
Web Wise Kids, Jessica Marie Lunsford Foundation and the Sunshine
Network for Youth Safety. We are encouraged that these charitable
organization relationships will provide the opportunity to get
even more OPPS systems deployed to law enforcement organizations.
In the next several weeks we also will launch a direct sales
initiative to law enforcement organizations, including
demonstrating OPPS at conventions and related events. We are
encouraged that this approach will provide added exposure of OPPS
to more law enforcement decision makers.
To support this increased marketing and sales activity, we are
upgrading our technology infrastructure to handle higher levels
of usage, and plan on expanding the number of web site chat rooms
we currently monitor. We also are working with active users to
get their feedback to further enhance OPPS in the months to come.
-- Intercept. We are pleased to report that we are performing on our
first Intercept Internet movie piracy-monitoring contract. We
signed this customer agreement last October and the movie was
released last month. We are excited to establish this new
application of our Internet technology.
-- NetGet Federal Government Business. I have been to Washington to
better understand and assess our NetGet Internet decryption
government business and opportunity. The support we have been
getting from Retired Major General Paul Weaver has been terrific.
However, the sales process has been difficult, so we are working
to develop a more specific marketing and sales strategy. I will
continue to report to you on our progress.
We have accomplished a lot over the past 30 days, but have so much more opportunity ahead of us. In the near term it is clearly our focus to grow AdZone's core business profitably. In the longer term it is our objective to leverage AdZone's then profitable business base into new lines of business, and grow AdZone to a higher level of success. It's a strategy Terry and I have successfully accomplished before, and we believe that the possibilities here are quite exciting. Thank you for your continued support, and I look forward to reporting more progress in the future.
Sincerely, Jeffrey Hale President & CEO
This press release is available on the company's official online Investor Relations HUB at http://www.agoracom.com/IR/AdZone for investor questions, answers and monitored commentary. Alternatively, investors are able to e-mail all questions and correspondence to ADZR@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
For additional information on AdZone Research, 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 Litigation 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. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.