Duraswitch Announces Fourth Quarter and Year-End 2000 Results

    PHOENIX--Feb. 27, 2001--Duraswitch Industries Inc. reported a net loss of $4.1 million, or $0.49 per share, on revenues of $2.3 million for the year ended Dec. 31, 2000.
    This includes a net loss of $1.2 million, or $0.13 per share on sales of $0.5 million for the fourth quarter. Our cash position at year-end was $16.4 million.
    Revenues for the quarter included $0.3 million in product revenue and $0.2 million in licensing revenue. Licensing revenue was derived from the Delphi Automotive Systems license and non-exclusive licensees for the Duraswitch PushGate technology.
    "We executed five new non-exclusive license agreements in the fourth quarter including Dewhurst, our first electro-mechanical switch supplier," said Duraswitch President Bob Brilon.
    "We ended the year with 16 licensees including our grand slam home run exclusive license agreement signed in the second quarter with Delphi Automotive Systems, a $30 billion multi-national company.
    "The Delphi transactions strengthened our financial position in year 2000 as we received a $4 million up-front payment for the exclusive rights to market and manufacture Duraswitch technology for the automotive industry, and an additional $11.5 million when Delphi purchased 1.65 million shares of Duraswitch common stock.
    "Delphi also guaranteed $12 million minimum royalties from automotive sales over the initial 7-year term of the agreement."
    "We raised our visibility considerably this year and are pleased with our progress," continued Duraswitch Chief Executive Officer Terry Dunlap.
    "Our growing portfolio of patented and patent-pending technologies is proving to be a next-generation solution to switch manufacturers and OEMs. We are committed to continued innovation and patent protection of our intellectual property and leveraging those assets through license agreements. By licensing this technology, we expand our reach exponentially and our competitors become allies."
    "We believe our licensing strategy allows us to stay focused on our core competency, technology innovation, and let our licensees do what they do best, low cost quality manufacturing," continued Brilon.
    Our licensing strategy is based on licensed manufacturers' use of Duraswitch's intellectual property for electronic switch applications that benefit from the advantages of our patented technologies in a wide variety of commercial and industrial designs. Royalties are received on a per-switch basis, based on volumes.
    Duraswitch's next-generation electronic switch technology addresses trends in the market today: the ever-present value engineering, flat-panel and slim-profile designs, high durability and reliability, sealability against harsh environments, illumination capabilities and an ergonomic, user-friendly interface.