Research Frontiers Continues Share Buyback as Its Outlook Remains Unaffected by Recent World Events
WOODBURY, N.Y.--Sept. 24, 2001--Research Frontiers Incorporated , the developer and licensor of SPD light-control technology, announced today that it continues its ongoing program authorized by its Board of Directors to make discretionary purchases of its common stock in the open market.The amount and timing of purchases will depend upon market conditions and other factors as they exist from time to time. Shares purchased by the Company are immediately retired.
Robert L. Saxe, President of Research Frontiers, noted: "While the world was shocked as we stared in disbelief at the tragic events of September 11th, America and its business are beginning to rebound. Our outlook remains excellent as we and our licensees continue the substantial progress made this year. Last week our licensee InspecTech Aero Service announced that it was still on target to meet its goal of selling and installing 5,000 SPD aircraft windows per month in 2002. While we conservatively assumed a $40 per window royalty which was the expected royalty for sale of SPD aircraft windows for commercial jets, recent data from the General Aviation Manufacturers Association (GAMA) indicates that the executive jet market is expected to continue growing faster than the rest of the aviation industry. Because Research Frontiers is expected to receive a higher royalty of between $90 to $150 per window on InspecTech's sales of SPD aircraft windows to the executive jet market (primarily to charter fleet operators and fractional jet ownership companies, this could result in substantially greater royalty income to Research Frontiers than previously estimated. Also as noted by InspecTech, in addition to the growing business for SPD windows for executive jets, they expect additional business from military and airline security applications. Furthermore, because SPD windows will save the airlines substantial fuel and maintenance costs, they should be an important part of the depressed airline industry's necessary cost-cutting measures. These windows can be installed during regularly-scheduled maintenance. We are also pleased that other licensees report being on or ahead of schedule despite recent world events."
Saxe continued: "We have the Board authorization and the financial ability to continue purchasing our stock. Last week, one of our directors purchased several thousand shares of our common stock in the open market, and Research Frontiers as a company purchased more shares throughout this past week under new rules by the SEC which ease restrictions on company buybacks. These rules were extended by the SEC and we intend to take advantage of them and current short-term market conditions to continue to buy back our stock. We continue to believe that our stock is an excellent investment, and with our strong balance sheet, progress by our growing list of licensees, and anticipated revenues and moderate expenses, we think that this is a good use of our capital."
So far this year Research Frontiers has repurchased and retired 397,365 shares for approximately $8 million. Last year Research Frontiers spent approximately $3.3 million to buy back and retire 182,600 shares of its common stock. After successfully completing its original buyback program for 375,000 shares, and an additional 200,000 share buyback program, Research Frontiers' Board of Directors authorized another 500,000 share repurchase program earlier this year. Approximately 220,000 shares remain available for repurchase by the Company under its current buyback program. Research Frontiers and has substantial cash has no debt.
About SPD Technology and Research Frontiers Incorporated
SPD technology allows you to instantly and precisely control how clear or dark glass or plastic is, and adjust its light transmission by either turning a knob or having the device automatically adjust itself. This is made possible by a thin film which uses SPD light-control technology invented by Research Frontiers. SPD technology is licensed to a growing number of companies in various industries, and is covered by approximately 365 patents and patent applications held by Research Frontiers worldwide.
SPD technology has many applications, including "smart" windows for homes and buildings, skylights and interior partitions. A smart window using SPD film provides relief from glare or heat without blocking view, while also enabling privacy whenever desired, protection from UV damage, promotion of energy conservation, and other benefits. In automotive vehicles, SPD-smart products can include windows, sunroofs, sunvisors, rear-view mirrors, instrument panels and navigation systems. In aircraft, replacing existing window shades with SPD film can improve passenger satisfaction and comfort, while also reducing fuel consumption, maintenance, downtime and cost of operation. SPD eyewear products - sunglasses, sport goggles such as ski goggles, and visors - will continuously and instantly control glare to the degree needed. In the flat panel display industry, SPDs may be used in products such as laptop computers, cell phones, and handheld devices such as PDAs - Personal Digital Assistants, with significant performance and cost advantages over current technologies. In advertising, promotion, and retail sales environments, SPDs offer display advertising advantages, bringing large, thin, flexible yet changeable displays to stores, store windows, point-of-purchase displays, billboards, truck sidings, road signs, and other signage applications. Some of our licensees' many product applications using SPD technology are currently being exhibited at the Nasdaq Market Site in Times Square in New York, where the public can see and operate smart windows for homes, offices, automobiles, and aircraft, as well as automotive sunroofs, sunvisors, and rear-view mirrors.
Research Frontiers has licensed the following companies to use its patented suspended particle device (SPD) light-control technology in emulsions, film, or end-products:
| - | AP Technoglass - North America's leading automotive glass and sunroof glass supplier and a subsidiary of Asahi Glass Co., Ltd., the world's largest automotive glass supplier; |
| - | Dainippon Ink and Chemicals Incorporated-the world's largest manufacturer of organic pigments; |
| - | Film Technologies International, Inc.-a leading worldwide manufacturer of solar control, safety and security window films for use on motor vehicles, homes and commercial buildings. |
| - | General Electric Company ; |
| - | Glaverbel, SA of Belgium - majority-owned by Asahi Glass, one of the world's leading automotive glass manufacturing companies; |
| - | Global Mirror GmbH & Co. KG - the world's largest manufacturer of commercial vehicle mirror systems; |
| - | Hankuk Glass Industries Inc. - Asia's largest flat glass producer (outside of Japan); |
| - | Hitachi Chemical Co., Ltd.- majority-owned and part of Hitachi Ltd.; |
| - | InspecTech Aero Service, Inc.- provides aerospace component design, production, marketing, and distribution to both the OEM and aftermarket industry segments including the Fortune 10 Aerospace Corporations in the U.S.; |
| - | N.V. Bekaert S.A. - a world leader in advanced metal transformation and coating technologies, and, through its newly-acquired specialty films division, is the world's second-largest producer of specialty window films (Belgium Stock Exchange: BERTT:PR); |
| - | Polaroid Corporation-the worldwide leader in instant imaging and a supplier of instant photographic cameras and films; digital imaging hardware, software and media; secure identification systems; and sunglasses to markets worldwide ; |
| - | ThermoView Industries, Inc. - a leading integrator of businesses and technologies within the replacement window industry (AMEX: THV); |
| - | Vision Ease Lens - the world's largest producer of polycarbonate lenses which is owned by BMC Industries, Inc. |
Research Frontiers is a technological leader in the development and licensing of suspended particle devices (SPDs)-electrically operated light-control devices using proprietary particle suspensions and films. SPD technology permits light transmission to be electrically controlled instantly, either automatically (by means of a photocell or other sensing or control device) or adjusted manually by the user. Research Frontiers' proprietary SPD technology enables users to control the amount of light passing through windows, skylights, eyewear (including prescription and non-prescription sunglasses and sports goggles), automotive sunroofs, sunvisors and rear-view mirrors, as well as enabling brighter easier to read flat panel information displays for use in computers, television, telephones and other electronic instruments and products. Research Frontiers currently has agreements in effect covering smart windows, automotive mirrors and sunvisors, eyewear, displays and other products with major international corporations and holds or has rights in over 365 patents and patent applications on SPD technology throughout the world. Licensees of Research Frontiers who incorporate SPD technology into end products will pay Research Frontiers a royalty of 5-10% of net sales of licensed products under license agreements currently in effect. Research Frontiers' common stock trades on the Nasdaq National Market under the symbol "REFR." Additional information about Research Frontiers can be found on the Internet at http://www.refr-spd.com.
Note: From time to time the Company may issue forward looking statements which involve risks and uncertainties. This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results could differ and are not guaranteed. Any forward looking statements should be considered accordingly.