Amerityre Announces Annual Shareholders' Meeting, Provides Operational and Strategic Update
New President Cites 'Exciting Milestones Ahead' for a Company Working on the 'Potential for Transformation of the Tire Industry'
BOULDER CITY, Nev., Oct. 26 -- Amerityre Corporation , a leading developer of polyurethane elastomer tire technologies, today announced that the Company's Notice of Annual Meeting of Stockholders and related Proxy Materials has been filed with the SEC and mailed to shareholders. The Annual Meeting of Stockholders will be held December 1, 2006 in Henderson, Nevada. Kenneth C. Johnsen, Amerityre's President, also provided comments on certain operational and strategic matters.
Mr. Johnsen stated, "As a director I developed a thorough understanding of Amerityre's business model and the potential for its technologies. However, since becoming President, I'm more convinced than ever that the Company is well positioned to take advantage of the industry dynamics for at least four key reasons:
"First, Amerityre has filed multiple patents relating to tire design, tire manufacturing processes, and tire belt and ply construction -- all used to produce a passenger car tire from polyurethane elastomer -- and we've received three patents and have nine more patents pending. All these aspects of the technology had to be invented. There was no off-the-shelf technology or equipment ready to use. We had to protect our intellectual property before we could begin to establish partnerships using our unique manufacturing methods and processes. After several tooling and equipment delays we recently began testing our Arcus(R) pneumatic run-flat tire design for compliance with FMVSS 139 standards that take effect next summer. We'll continue to test that design for both passenger car and special trailer tires. It's important to note that since we have produced tires that have passed the current FMVSS 109 standard, our manufacturing processes could be used today to produce tires that would not be subject to FMVSS 139.
"Second, the manufacturing license agreement executed in September 2006 with Qingdao Qizhou Rubber Company is an important step in implementing retreading for larger mining tires. Qingdao is making a substantial financial commitment to a new technology. They are building a factory with an annual retread capacity of up to 10,000 units. Based on 10,000 units, their need for our proprietary polyurethane material needs could be as much as 16.5 million pounds per year, based on the production mix.
"Third, we have two separate projects that complement our off-the-road, or 'OTR' retread program. In August 2006, we entered into a memorandum of understanding with a specialty tire manufacturer. The manufacturer will be evaluating our polyurethane elastomer material for retreading medium radial truck tires and certain sizes of OTR tires. We also recently entered into an agreement with Phelps Dodge to evaluate polyurethane elastomer retreads for large OTR tires. The Phelps Dodge program is part of a broader plan to explore constructing an OTR retread production facility. In this area, we'll continue to work with other companies to establish similar agreements.
"Fourth, in applications other than tire compounds, we've received very positive test results relating to the processability and aggressive- environment stability of our polyurethane material used in glass encapsulation application. In laboratory tests our material has exceeded by a factor of three the capability of the leading material used by the automotive industry. We estimate that the world market for glass encapsulation material is approximately 150 million pounds, so we're developing the strategy for entering that market with our material."
Mr. Johnsen concluded, "It is important to remember that Amerityre is engaged in what is potentially a transformation of the tire industry from a rubber-based paradigm to a polyurethane paradigm. While disruptive technologies like ours may take time for existing industries to embrace, all the industry dynamics appear to be creating a multi-faceted opportunity for Amerityre's technology's entry into large worldwide markets."
Mr. Johnsen summarized by saying, "The state of the Company is promising, with several exciting milestones ahead of us."
About Amerityre
Amerityre is actively engaged in the development of revolutionary new polyurethane elastomer tire technologies. Amerityre's technologies are currently focused on four additional major tire segments: 1) retreads for medium commercial truck, industrial and off-the-road tires; 2) passenger car and light truck tires 3) special trailer tires with "run-flat" capabilities; and 4) solid industrial tires. Amerityre is commercializing its technologies through licensing agreements with strategic partners, co-development projects and the sale of equipment and its proprietary chemical formulations.
For more information on Amerityre, visit its website at www.amerityre.com
This release may contain statements that are forward-looking. Such statements, including those related to the prospects for and/or the benefits of Amerityre's technology, materials, license and/or development agreements are made based upon current expectations that are subject to risks and uncertainties. Such risks and uncertainties include the factors discussed in our Annual Report on Form 10-K for the year ended June 30, 2006, as well as Forms 10-Q and other filings with the Securities and Exchange Commission. Amerityre does not undertake to update forward-looking statements in this news release to reflect actual results of and changes in assumptions or changes in other factors affecting such forward-looking information.
Company Contact: CCG Contact: David P. Martin Sean Collins, Senior Partner dpmartin@amerityre.com (310) 477-9800 (702) 293-1930 x121