TORONTO, July 10 /CNW/ - Cymat Technologies Ltd. has entered an exclusive distribution agreement with Fazza Design Studio in Israel. The agreement allows Fazza to focus on developing architectural uses for Cymat's aluminum foam as well as exploiting and developing key sales within the Middle East for Cymat's blast mitigation products. The agreement requires stepped purchases over 3 years totaling $2 million. It is anticipated that revenues flowing from this agreement could be very substantial.
Israel is a major technology innovator in a number of defense industry arenas. Substantial work has been done proving the efficacy of Cymat's aluminum foam as a blast mitigant over the past 5 years and this research was conducted by researchers at The Ben Gurion University. A paper summarizing this research using Cymat foam called 'Foam Protected Reinforced Concrete Structures Under Impact' was published in the Journal of Structural Engineering in August 2005.
Cymat's unique continuous casting process allows it to be affordable for this application. Cymat's technology allows it to be the low-cost producer of aluminum foam panels and 3-dimensional shapes.
"The agreement with Fazza is a very important building block in furthering our blast mitigation business in a key region of use" said Chris Skillen. "Fazza's military relationships should provide access to key defense applications for our blast mitigation products and solutions" he continued.
This agreement is the result of important business development activities by our executive team and an important accomplishment for Cymat. Cymat's strategy includes the use of key distributors with knowledge in key markets for its products. This announcement is consistent with this plan.
About Cymat:
Cymat develops innovative materials for industry. The company has worldwide rights, through patents and licenses, for producing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, architectural and blast mitigation industries. For further information, visit the Web site www.cymat.com.
The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Technologies Ltd. with the Ontario Securities Commission. Cymat Technologies Ltd. disclaims any intention or obligation to update or revise any forward-looking statements.
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