Duraswitch Announces Results for First Quarter 2001

    PHOENIX--April 25, 2001--Duraswitch Industries Inc. reported a net loss of $0.9 million, or $0.10 per share, on revenues of $260,000 for the quarter ended March 31, 2001.
    Revenues for the quarter included $180,000 in licensing revenue and $80,000 in product revenue. Our cash position at quarter-end was $15.6 million.
    Licensing revenue was derived from the Delphi Automotive Systems license and non-exclusive licensees for our Duraswitch technology. Most of our revenue was derived from license relationships, and we have substantially completed our transition from a manufacturer to a licensing company.
    "We are focused on signing additional licensees to expand awareness and distribution for Duraswitch technology," said Bob Brilon, Duraswitch president.
    "This quarter we executed a license agreement with Nelson Nameplate, one of the top domestic membrane manufacturers. We are also pleased that Delphi has furthered their commitment to be a major player in the global switch market with a $300 million purchase of Eaton's Vehicle Switch/Electronics Division, now called Delphi Mechatronic Systems."
    "Equally important, we marketed directly to high-volume application OEMs as well as supporting our licensees sales efforts. We have announced customer applications using Duraswitch technology ranging from low-volume for weather balloon controls incorporating the thiNcoder Rotor to higher volumes for gas pump panels using the PushGate.
    "Delphi Automotive announced the first automotive application, targeted to go into production this year."
    Brilon continued, "Each new licensee brings multiple customers with multiple projects. Each project can have multiple switches per panel. Each switch means royalty revenue to Duraswitch."
    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.