TARPON SPRINGS, Fla., Oct. 10, 2006 (PRIMEZONE) -- Solomon Technologies, Inc. (OTCBB:SOLM) announced today that it has undertaken a major corporate reorganization as a result of the closing of its acquisition of Technipower LLC on August 17. In addition, the Company has announced primary points of its strategic plan incorporating its new assets.
Peter W. DeVecchis, Jr., the President of Solomon, announced today that the Company has established two operating groups: one focused predominantly on the licensing of the Company's alternative energy, regenerative and hybrid intellectual property, and the other oriented to the development, manufacturing and sale of power systems for broad market applications including those in military, commercial, OEM and alternative energy areas. To accomplish this, the Company has established a Motive Power Division (MPD) and a Power Electronics Division (PED). The MPD will concentrate in two areas: first, on developing and acquiring new intellectual property related to high efficiency, environmentally friendly solutions to power generation and motor systems primarily in mobile platforms, and secondly in licensing its technology to a variety of OEMs. The PED will focus its efforts in highly engineered power systems while also providing both technical and sales channel augmentation to MPD. The latter is particularly useful since PED has deep technical resources in magnetics, analog devices, and high power engineering as well as extensive experience in high speed switching of DC power sources, all of which are germane to MPD's areas of concentration.
Solomon expects that its two operating groups will be able to exploit opportunities for market consolidation, cross marketing and core business growth, and believes that the combination of MPD's unique patented technologies with PED's engineering and manufacturing capabilities, will allow the MPD to expand its application specific technology development.
As part of this reorganization, the Company is also identifying other opportunities to acquire both intellectual property and operating companies that fit into Solomon's long term goals.
Commenting about Solomon's strategic direction, Peter DeVecchis said "Although the Company has many exciting opportunities ahead of it, we are committed to a plan that fits with our existing technology and dovetails with the technology, skills and market channels we are acquiring in our acquisitions. As part of the plan, in the ensuing quarters we expect to report a growing revenue line as well as increased cash flow generation to fund some of our ongoing investments in new markets, new technologies and asset acquisitions." He continued, "It is also important to note that our plan and continuing operations do not depend on the outcome of our current patent litigation. Although we are confident that we will prevail in the current patent infringement case against Toyota, we are also intensely focused on protecting the intellectual property from other infringers and licensing all of our technology into a broad array of applications."
Mr. DeVecchis noted that he expected to share more information on the Company's operational plans as the year progressed.
Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc. develops, licenses, manufactures and sells electric power drive systems, including those incorporating hybrid and regenerative technologies incorporating Solomon's patented Electric Wheel(tm) and Electric Transaxle(tm), for marine, commercial, automotive, hybrid and all electric vehicle applications.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize the terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this release speak only as of the date hereof, and the company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.