"Based upon studies of a number of market verticals, we believe thepotential market for the new launcher is extremely large and includes consumers, security personnel, police, animal control officers, deliverypersonnel, pet owners wishing to protect their pets, campers, bikers, andhikers among others, with potential demand in the millions of units. Webelieve this box and ship product has significant international market potential. It is also noteworthy that this product generates significantfollow-on consumable sales of ammunition and air canisters that are requiredwith each usage of the launcher. Upon completion of final prototypes and commencing manufacturing, we expect to begin pre-sales through an aggressive marketing campaign including on-line sales initiatives," Mr. Sutton concluded.
The acquisition of the commonly controlled companies calls for a purchase price for the combined companies, primarily payable in A4S common stock,totaling
A4S Business Update
Tom Marinelli , CEO of A4S, commented on recent business activity: "OurA4S ShiftWatch division continues to add new customers including recently announced additions or customer expansions of ShiftWatch TVS contract opportunities. These include the Greater Cleveland Regional Transit Authority(
Brian McLean, Transit Manager of the City of Vacaville stated, "The City of Vacaville Transit Department is extremely happy with our decision to outfitour entire transit fleet with the ShiftWatch surveillance product. ShiftWatch demonstrated a rugged, well-designed and modular security system that met allof our criteria for quality, performance and price. The quality of thecaptured video and sound is simply amazing, and viewing the video from the Playback Station PC is incredibly easy and intuitive. The City's TransitDepartment appreciates ShiftWatch's professionalism throughout the entirepurchase, installation and training process."
A4S also noted that its board of directors has approved the schedule forits recently announced 2006 Annual Shareholder meeting. The meeting, subjectto finalization and distribution of required proxy materials, will be held September 28, 2006 at a location to be announced in the Denver ,Colorado area. Shareholders of record as of July 31, 2006 will be entitled to vote at themeeting, either by proxy or in person. A4S currently anticipates including the following topics for vote at the meeting: changing the company name to Security With Advanced Technology, Inc., re-electing directors and increasing the common shares reserved for issuance under A4S's 2004 Stock Incentive Plan.As previously announced, the proposed new company name was chosen to moreaccurately reflect the company's more extensive business and line of products in the marketplace and is designed to tie A4S's name to its stock symbol "SWAT." The name change will also require an amendment to A4S's Articles of Incorporation and a change in the trading CUSIP number of the company and thenan exchange of all stock certificates for new ones reflecting the new name and CUSIP number.