Micropoint Moving Headquarters and Manufacturing Into Expanded Facilities
21 December 1998
Micropoint Moving Headquarters and Manufacturing Into Expanded Facilities
SALT LAKE CITY--Dec. 18, 1998--
Anticipated increase in production needs prompts
company's move from 14 to just over 61,000 square feet
in Salt Lake City's International Center
Micropoint Inc. (MICP - news) has signed a five-year lease with Prudential Insurance Company of America to establish its automotive production facility in a prime manufacturing location, near the Salt Lake City International Airport.
The company is moving its headquarters and principal manufacturing facilities from its current location at 6906 South 300 West, in Midvale, Utah, to larger production facilities at 635 North Billy Mitchell Road, in Salt Lake's International Center.
Plans for the new facility are being finalized and equipment purchased as Micropoint prepares to meet its anticipated production schedule with a major automotive supply firm. Revenues from the automotive contract could exceed $135 million upon completion, but there is no assurance that such revenues will be achieved, or that the volume of production will be as anticipated.
The company needs to ensure that all systems are in place to qualify its new location for QS 9000 audit, an internationally recognized quality standard required for working with the auto industry.
"We are very excited about driving our operations into a more aggressive phase of expansion," said Doug Odom, Micropoint's president and Chief Executive Officer.
"Moving our facilities is actually the first stage of preparing to ramp up for the anticipated major production of automotive products," said Odom. "Production for smaller contracts will continue at our current plant. We believe that full use of the two locations will accommodate our expected growth over the next several years."
Micropoint has a suggested move-in date for its new location of Jan. 15, 1999. The five-year lease has a three-year option to renew, and the company maintains the right of first offer on an additional 60,000 square feet of operating space, in two 30,000 square foot increments. The lease is cost out at approximately $0.36 per square foot.
Micropoint's unique Bend Sensor(R) device measures a predictable change in electrical resistance as it is deflected. It is capable of precisely measuring minute 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.
Through its operating subsidiary Flexpoint Inc., Micropoint designs, manufactures and markets flexible Bend Sensor(R) technology for various industries, including the automotive, industrial and toy industries. Micropoint's stock recently began trading under the symbol MICP.
Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, manufacturing volume, manufacturing revenues, product demand, market acceptance, government regulation, 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.