| CONTACTS: |
César García, President and Chief Executive Officer |
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818-709-1244 x 7123
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|
-or-
|
|
Ron Stabiner, The Wall Street Group, Inc. |
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212-888-4848 |
CHATSWORTH, Calif., May 22, 2007 - IRIS International, Inc. (NASDAQ GM: IRIS)
announced today that after a thorough review, the IRIS Board of Directors has concluded that it is in the best interests of the Company and its shareholders to close the operations of its wholly-owned
Advanced Digital Imaging Research subsidiary (ADIR), whose costs had previously been substantially covered by government sponsored grants.
"As part of our normal review of business profitability, we determined that we cannot continue this operation without grant funding or a business partner covering most of
their expenses. Due to new government guidelines under the Small Business Administration (SBA), ADIR, as a wholly-owned subsidiary of IRIS International, no longer qualifies for the government grant funding
previously provided to ADIR," stated César García, IRIS President and Chief Executive Officer. "While the closing of ADIR will result in a modest one-time termination charge of less than
$200,000 in the second quarter 2007, the net effect will be a cost avoidance of approximately $800,000 per year in salaries and overhead to fund a non-core business, as we will no longer be subsidizing the
subsidiary. IRIS will continue to own all patents, intellectual property, equipment and prototypes of the ADIR subsidiary and will seek to monetize these over some period of time," he added.
"In addition to the suspension of government funding, the 3D facial recognition technology which ADIR had been developing would have taken at least another two years at
best to develop a commercial product capable of screening individuals at airports and other security checkpoints. Further, the present market for 3D facial recognition is practically non-existent and it would
likely take years to develop a 3D database and obtain government appropriations to implement these systems," Mr. García said.
"IRIS maintains a significant research and development program focused directly on our current and expanding product lines, and will continue this applied research effort,
but does not intend to support pure research activities aimed at furthering science not directly useful to the parent company and its mission," Mr. García said. "Dr. Kenneth Castleman, former
President of ADIR, has retired but he will continue as a consultant to IRIS International," added Mr. García.
THE COMPANY
IRIS International, Inc. (www.proiris.com), based in Chatsworth, Calif., is a leading developer, manufacturer, and marketer of
medical devices, diagnostic systems and consumables. The Iris Diagnostics Division (www.irisdiagnostics.com) is a leader in automated
urinalysis technology with systems in major medical institutions throughout the world. The Company's Sample Processing business unit (formerly the StatSpin® subsidiary)
(www.statspin.com), based in Westwood, Mass., manufactures innovative centrifuges and blood analysis products. The Iris Molecular Diagnostics (IMD)
Subsidiary, based in San Diego, Calif., develops innovative ultra-sensitive diagnostics and sample processing products with applications in the urinalysis, oncology and infectious disease markets.
SAFE HARBOR PROVISION
This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to, the Company's intent to monetize the ADIR technology, and are generally identified by phrases such as "thinks," "anticipates,"
"believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are
inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things,
assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, R&D initiatives, competition and capital
requirements. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form
10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the
forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.