Prolong Reports Operating Efficiencies, Energized Marketing Plans

18 September 2000

Prolong International Corp. Reports Operating Efficiencies, Energized Marketing Plans

    IRVINE, Calif.--Sept. 18, 2000--Prolong International Corp. (Amex:PRL) Monday announced interim results of its expense reduction campaign at its Prolong Super Lubricants headquarters.
    Prolong Super Lubricants Inc. has been engaged in an operating expense reduction campaign with the aim of returning to consistent profitability.
    Following the initiation of the current and ongoing cost-reduction edict, the company announced that its projected total overhead expense reductions for sales and marketing and general and administrative costs for the year 2000, will reflect an approximately 50% reduction, or $17 million, from 1999 levels. Included in this was a management-initiated manpower reduction of approximately 30%.
    Other savings were realized through the renegotiation of long-term contracts and the elimination of expendable services.
    "We are well under way in the execution of prudent fiscal measures to ensure long-term profitability and growth," said Elton Alderman, president and chief executive officer, Prolong Super Lubricants.
    "This process was fully initiated during the first quarter of this year and has been expanded and accelerated since. The initial benefits of this streamlining process should have a cumulative effect clearing the way for what we believe should be a prosperous 2001."
    Nicholas Rosier, Prolong's chief financial officer, stated that the company also has benefited from a strong relationship with its lender, Wells Fargo. Included in the arrangement between Prolong and its bank is a $6 million credit facility available via a formula based upon eligible receivables and inventory.
    In addition to its expense management commitment, Prolong also reconfirmed its commitment to strategic product diversification, indicating the anticipated retail launch of several new consumer automotive products in 2001.
    "Prolong has demonstrated its ability to create and market exceptional quality automotive products," said Thomas Billstein, Prolong's chief operating officer. "In monitoring the consumer marketplace, we have identified several opportunity-rich categories compatible with our innovative technology resources.
    "We therefore plan to debut and aggressively market new products in order to generate additional profits and further bond consumers with the Prolong Super Lubricants brand."
    Prolong continues to enjoy strong relationships with the premier auto parts distributors in North America. The company will leverage its marketplace presence with a new collection of cost-effective marketing programs including print and television advertising campaigns backed by innovative in-store promotions.
    Said Fred Petrivelli, vice president, sales and marketing: "The Prolong brand, particularly through its signature, patented Engine Treatment and Transmission Treatment products, has earned an extensive and loyal customer base. We are now positioned to further solidify and grow through new and category-energizing programs.
    "Prolong plans to further expand within the lucrative professional installer segment of the market, as well as non-automotive settings including hardware and drug store chains with a select product offering."
    According to Petrivelli, Prolong plans to unveil and implement aggressive marketing plans including certain category-unique programs for its products. Prolong anticipates these programs to be announced and phased-in on an ongoing basis during the remainder of 2000 and continuing into 2001.
    Under the direction of Russ Hall, vice president, international sales, expansion of Prolong consumer and industrial products worldwide have taken a strong upward swing in 2000. The company believes international distribution will continue in a steady growth mode for the immediate foreseeable future.
    In concluding, Alderman stated: "We are greatly appreciative of the loyalty and support of our customers, suppliers and employees worldwide, who have assisted and accommodated us during this period. We look forward to resuming Prolong's prior history of increased top-line growth and profitability."