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Kronos and HoMedics Sign Multi-Million-Dollar Agreement to Launch Kronos™ Technology in the Consumer Market
BELMONT, Mass., October 29 /PRNewswire-First Call/ (OTC Bulletin Board: KNOS) Kronos Air Technologies, Inc., a wholly owned subsidiary of Kronos Advanced Technologies, Inc. and HoMedics USA, Inc. executed a multiyear, multi-million-dollar Licensing Agreement to bring Kronos™ proprietary technology to the consumer. The agreement provides for exclusive North American, Australian and New Zealand retail distribution rights for next generation consumer air movement and purification products based on patented Kronos™ technology.
The initial term of the agreement is three and one half years with the option to extend the agreement for six additional years. Kronos will be compensated through an initial royalty payment and ongoing quarterly royalty payments based on a percentage of sales. HoMedics will pay minimum royalty payments of at least $2 million during the initial term and on-going royalty payments to extend the agreement. Kronos will retain full rights to all of its intellectual property.
HoMedics commitment includes a multi-million-dollar marketing and advertising campaign to promote the Kronos™-based product line. The products will be manufactured and distributed by HoMedics. HoMedics currently distributes their products through major domestic retailers, including Wal-Mart, Home Depot, Sears, Bed Bath & Beyond, and Linens 'N Things. Kronos will manufacture and provide HoMedics with Kronos' proprietary electronics.
"We believe that through the combination of HoMedics marketing savvy, proven sales capability and distribution reach with Kronos' proprietary air movement and purification technology, HoMedics and Kronos will be well positioned to bring a comprehensive air purification product line to the consumer market," commented Daniel R. Dwight, President and CEO Kronos Air Technologies. "Working with key strategic partners such as HoMedics is indicative of how Kronos is developing other markets for the proprietary Kronos™ technology."
"A strong air movement and purification market exists today and will certainly grow exponentially as air quality continues to decline and consumers continue taking charge of their health," said Ron Ferber, President HoMedics USA, Inc. "Kronos' proprietary technology coupled with HoMedics strong marketing and significant financial investment will ensure market dominance".
The proprietary Kronos™ technology provides innovative air movement and treatment wherever a clean and controlled air system is desirable. The Kronos™ technology provides silent air movement, air cleaning, and odor removal in devices that can be made in any size or shape. Because the Kronos™ air movement system is a silent, non-turbulent, and energy efficient air movement and cleaning system, it is ideal for air circulation, cleaning and odor removal in family rooms, bedrooms, bathrooms and kitchens.
Kronos' claims for filtering and purifying air from the pathogens (including anthrax-like bacteria), dust, second hand cigarette smoke and other particulates found in residential homes is based on filtration and purification testing conducted by independent testing laboratories and potential customers. These tests have demonstrated the capability of the Kronos™ technologies to provide a Clean Air Delivery Rating ("CADR") in excess of 300 in a test of .09 to 1.0 micron size smoke particles (which is better than the average CADR for the top line air purifiers currently available in the consumer market) and to reduce toxic substances found in second hand cigarette smoke by as much as 95%. Kronos™ products passed High-Efficiency Particulate Arrestance ("HEPA") cleanroom class 1000 standard for particulate removal.
About Kronos Advanced Technologies, Inc.
Through its wholly-owned subsidiary, Kronos Air Technologies, Inc., Kronos Advanced Technologies focuses on the development and commercialization of a new, proprietary air movement and purification technology. Kronos's technology utilizes state-of-the-art high voltage electronics and electrodes to create an efficient but simple electrical device. As a result of this combined technology, the Kronos™ air movement and purification device can move and clean air without any moving parts. The device is versatile, energy and cost-efficient and exhibits multiple design attributes, creating a broad range of applications. More information about Kronos Advanced Technologies is available at www.kronosati.com.
Contact: Kronos Advanced Technologies: Daniel R. Dwight at 617-993-9965 or email: investors@kronosati.com.
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 "Factors Affecting Kronos' Business and Prospect" in the Company's Annual Report on Form 10-KSB for the year ended June 30, 2003 as filed with the Securities and Exchange Commission.
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