AcuNetx Anticipates Increased Revenues and Margins with the Successful Restructuring of its Long-Term Sales and Marketing Agreement
Superior, Colorado, May 24, 2006 AcuNetx Inc. (OTC BB: ANTX) is pleased to announce that it has reached an agreement with MedTrak Technologies, Inc. (MedTrak), the long-time exclusive distributor of its VNG and balance products, to restructure its National Sales and Marketing Agreements which will allow AcuNetx IntelliNetx division to create exciting parallel product branding, marketing, distribution and sales initiatives. MedTrak, until now the exclusive U.S. distributor of IntelliNetx (formerly Eye Dynamics) VNG products for eye tracking in the diagnosis and rehabilitation of dizziness and vertigo, will continue to distribute the IntelliNetx products under the MedTrak brand. IntelliNetx, now in the process of refining and energizing its time-tested products and technologies, will bring a state-of-the-art, fresh look to the newly branded VNG products for customers through an independent and proprietary distribution network. Significantly, the re-aligned association with MedTrak will now permit AcuNetx the distinct advantage of booking all retail sales revenue, regardless of distributor origin.
"We are very excited and gratified to have the opportunity to create end-to-end customer value and to segue from a wholesale OEM-supplier business model to a retail-distributor model", states Terry Knapp, MD, CEO of AcuNetx. "We will work with MedTrak, our reliable, long-time friend, and other distributors to rapidly increase sales of our medical products while we simultaneously ramp up our IntelliNetx brand to meet what we believe to be impressive market demands for our products, both nationally and internationally. Our new approach not only allows us to immediately and measurably increase top line revenue, but also provides us needed controls to dramatically improve gross profits that will ultimately be reflected as improved net income".
As a result of the new marketing and distribution agreement with MedTrak, Mel Shadowens, PhD, President and CEO of MedTrak, a hearing and balance professional with more than 30 years experience and former consultant to the Surgeon General of the USAF, will serve as strategic senior advisor to AcuNetx. The new relationship between MedTrak and AcuNetx will assure MedTrak of a continued stream of product and technology improvements from AcuNetx that will address our customers ongoing needs, said Dr. Shadowens. I look forward to working with IntelliNetx and AcuNetx to rapidly build the value of our collective VNG businesses.
Having parallel yet unique brands in the market gives maximum opportunity and flexibility to the myriad requirements and preferences of the varied customer base for these products, which includes audiologists, otolaryngologists, neurologists and physical and occupational therapists, remarked David Hanke, Senior Vice President of Sales and Marketing for AcuNetx. Moreover, Dr. Shadowens expertise in this health care sector is especially valuable to us as we strive for increases sales and margins across the board.
About AcuNetx, Inc.
AcuNetx combines diagnostic, analytical and therapeutic devices with proprietary software to permit: health providers to diagnose and treat balance disorders and various bone deficiencies; law enforcement officers to evaluate roadside sobriety; and employers in high-risk industries to determinein real-timethe mental fitness of their employees to perform mission-critical tasks. AcuNetx is headquartered in Superior Colo., and has operating divisions in Torrance, Calif. For more information about AcuNetx and its divisions, please visit www.acunetx.com.
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the companys progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent managements opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The companys operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the companys periodic filings with the U.S. Securities and Exchange Commission.
|