Micropoint Announces Agreement With Major Automotive Systems Manufacturer
29 September 1998
Micropoint Announces Breakthrough Partnering Agreement With Major Automotive Systems Manufacturer
SALT LAKE CITY--Sept. 29, 1998--
Micropoint to Provide Proprietary Bend Sensor(R) Technology as
Critical Component for "Smart" Airbag Systems to be Manufactured by
the World's Largest Automotive Supply Company.
Micropoint Inc. (OTC BB:MICP) Tuesday announced a landmark agreement with a major automotive systems company to supply Micropoint's patented Bend Sensor(R) mat as the critical component of a "smart" airbag system, to be manufactured for a major, worldwide automaker.
(For further details refer to Micropoint's 8-K filing with the SEC dated July 20, 1998).
The Bend Sensor(R) mats will be manufactured by Micropoint's wholly-owned subsidiary, Flexpoint Inc., located in Salt Lake City. Revenues from the contract could exceed $135 million upon completion, but there is no assurance that such revenues will be achieved. "We are very excited about this initial agreement with the automotive industry," said Doug Odom, Micropoint's president and chief executive officer.
"This agreement is with one of the largest suppliers of automobile safety systems in the world. It is an incredible partnering opportunity for Micropoint, and will showcase the capabilities of our revolutionary Bend Sensor(R) technology. We believe that this substantial pact is the first of many emerging sales opportunities for Micropoint in the automotive industry," said Odom.
"Smart" airbag systems can detect the size and position of passengers sitting near the bag, and can suppress its deployment. Bend Sensor(R) technology assists in the detection of car seats, children and small adults for the purposes of suppressing air bag deployment.
The market for "smart" airbag systems is potentially enormous. In 1997, over 56,000,000 cars and light trucks were sold worldwide. In addition, the NHTSA (National Highway Transportation and Safety Administration) is holding hearings to decide if it will require automakers to install "smart" airbag systems in cars beginning in 2002.
The company believes that given the advanced stage of its product development, Micropoint has a chance to set the industry standard for occupant sensing technology in "smart" airbag deployment.
Micropoint's unique Bend Sensor(R) device measures electrical potential through degrees of displacement or bending. It is capable of precisely measuring minutely small to very large changes in position. Flexible and self-contained Bend Sensor(R) technology can provide an ideal solution to problems associated with numerous applications requiring accurate sensing devices in many industries.
The Bend Sensor(R) is thinner, lighter, longer-lived, more reliable and more cost-effective than many previous devices in the sensor industry.
Micropoint designs, manufactures, and markets through Flexpoint its revolutionary flexible potentiometer technology for various industries, including the automotive, medical, industrial, aerospace and toy industries. Micropoint's stock recently began trading on the OTC market under the symbol MICP.
Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, market acceptance, changing economic conditions, risks in product and technology development, the effect of the company's accounting policies and other risk factors detailed in the company's filings with the Securities and Exchange Commission.