ABATIX CORP. Reports Update
DALLAS, Dec. 6 /PRNewswire-FirstCall/ -- ABATIX CORP. (NASDAQ:ABIX) today
announced that the third party testing and analysis of most of the previously
disclosed RapidCool(TM) product line has been substantially completed. This
work was performed by two nationally-known testing companies, one which
performed efficacy testing and related analyses and one which performed an
environmental analysis. While there can be no assurance as to the impact these
products may have on the sales and profitability of Abatix, the status of the
products and results of the testing and analysis efforts are summarized below: -- The Goodwin Group, the developer of RapidCool(TM), has claimed their
products remove heat from fire, metal, wood and other surfaces. Testing performed indicates that certain RapidCool(TM) products
significantly slow ignition of various combustible materials (wooden
cribs, plywood boards and other cellulose materials), significantly
reduce the "heat release rate" in connection with fires, and
significantly slow the heat conduction rate. -- The Goodwin Group has claimed their product suppresses fire with less
water and manpower. Actual field tests observed by Abatix and
performed by fire department personnel appeared to confirm this
claim. Our third party laboratory and other testing on the
RapidCool(TM) fire suppressant did not provide reliable evidence to
validate or invalidate this claim. Because testing to date has been
inconclusive, Abatix does not presently intend to bring the
RapidCool(TM) fire suppressants to market until third party testing
confirms their efficacy. -- The Goodwin Group has claimed that skin treated with their burn cream
heals more quickly and that the product is "FDA Approved." While the
manufacturer of the burn cream has stated that the burn cream meets
an FDA monograph and therefore can be marketed as "FDA Approved," the
Company has decided not to market the burn cream at this time. Currently, Abatix believes it is not in its best interest to spend
the large sum of money to (1) verify the burn cream meets the
applicable FDA monograph and/or (2) perform the medical testing to
validate Goodwin Group's efficacy claim. -- The Goodwin Group has claimed that trees and other combustible
materials treated with RapidCool(TM) refuse to ignite. Videos
provided by the Goodwin Group showing field tests reportedly
performed by fire department personnel appeared to confirm this
claim. Additionally, Abatix employees witnessed actual field tests
(some of which were performed by fire department personnel) which
appeared to indicate that the ignition of various combustible
materials was significantly delayed after the application of
RapidCool(TM). Third party testing further revealed that, when
treated with RapidCool(TM), the ignition of various combustible
materials (wooden cribs, plywood boards and other cellulose
materials) was significantly delayed. Abatix expects third party
testing to be performed on trees at a later date. Based on the above
test results, Abatix intends to market all RapidCool(TM) fire
retardant products, other than the Christmas Tree Fire Retardant and
the Christmas Tree Protectant, for general use on combustible
materials other than trees. -- The Goodwin Group has claimed that expensive tool components treated
with RapidCool(TM) generally have an extended life. Third party
testing verified this claim. -- The Goodwin Group has claimed their products are environmentally
responsible, non-toxic, non-hazardous and biodegradable. A third
party environmental analysis has reported the following:
-- 16 of 20 RapidCool(TM) products evaluated were reported to be
non-toxic. Four products (a machining coolant and lubricant; a
metal conditioner; an industrial coolant; and a
cleaner/degreaser) were reported to have low toxicity. -- All 20 products evaluated were reported to be non-hazardous. -- 17 of the 20 products evaluated were reported to be
biodegradable. The machining coolant and lubricant and the
metal conditioner were reported to be biodegradable, except for
their petroleum components. While the cleaner/degreaser is not
fully biodegradable, the third party environmental analysis
indicates it should not negatively impact the environment in any
significant way, if used in accordance with the product labels
and the Material Safety Data Sheets. -- Abatix believes the RapidCool(TM) products should present no
problems to users of those products, if they are used in
accordance with the product labels and Material Safety Data
Sheets. -- Based on the above efficacy tests and environmental analysis, Abatix
intends to market (in addition to the fire retardant products
mentioned above) certain RapidCool(TM) welding and industrial
products.
Except for the historical information contained herein, the matters and
comments set forth in this release are forward looking and involve a number of
risks and uncertainties. Among the factors that could cause actual results to
differ materially are, but not limited to, the following: the market is
unreceptive or unwilling to pay for a new product, a competitive product exists
or is developed that outperforms the RapidCool(TM) line of products, patent
applications are denied or are not assigned; inability to hire and train
quality people or retain current employees; changes in interest rates; or
negative effects from investor issues.
ABATIX CORP. is a full line supplier to the construction tool, industrial
safety, hazardous materials, and environmental industries. The Company
currently has seven distribution centers in Dallas and Houston, Texas, in San
Francisco and Los Angeles, California, in Phoenix, Arizona, in Seattle,
Washington and in Las Vegas, Nevada. These distribution centers serve
customers throughout the Southwest, Midwest, Pacific Coast, Alaska and Hawaii. DATASOURCE: ABATIX CORP.
CONTACT: Frank Cinatl of ABATIX CORP., +1-888-ABATIX-X or +1-888-222-8499, or Web site: http://www.abatix.com/
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