AUGUST 18TH, 2000
COMPANY PRESS RELEASE
SAC TECHNOLOGIES, INC. CLOSES ON DEFINITIVE AGREEMENT WITH JASPER CONSULTING,
INC., OBTAINS BRIDGE FINANCING AND COMMENCES EXECUTION OF NEW BUSINESS MODEL.
Minneapolis, Minnesota.--(BUSINESS WIRE)--August 18, 2000--SAC Technologies,
Inc. (OTC BB: SACM) today announced it has closed on a Definitive Agreement with
Jasper Consulting, Inc. which vests SAC with sole ownership of its proprietary
biometric technology.
As described in the Company's quarterly report on SEC Form 10-Q, on August 12th,
2000 the Company entered into a mutual general release and a Definitive
Agreement with Jasper Consulting, Inc. and certain current and former principals
of the Company and Jasper who were involved in the invention of certain
biometric technologies. These agreements provided for 1) the termination of all
previous agreements between the parties; 2) the discharge of all debt existing
between the Company and Jasper; 3) each party assigning to Jasper any and all
rights in and to FIDS Technology; 4) each party assigning to SAC any and all
rights in and to Vector Segment Technology ("VST"), SAC Technologies Biometric
Solution ("STBS") and Optic Technology; 5) a mutual general release of any and
all past claims; 6) an agreement between SAC and Jasper to begin negotiations
within 120 days regarding the licensing of VST technology to Jasper; and 7) the
dismissal with prejudice of the outstanding litigation between SAC and Jasper.
Closing of the Definitive Agreement was conditioned on delivery, testing and
acceptance of FIDS Technology to the satisfaction of Jasper which occurred on
Tuesday August 15th, 2000.
The agreements vest the Company with sole ownership of VST, STBS and Optic
Technology and permit the Company to sell or license its products and
technologies in any market without payment of any fees or royalties to Jasper.
As a result, management believes SAC is now significantly better positioned to
commence the commercial distribution of its products and technologies and the
execution of its business plan.
To this end, over the past several months, the Company has been actively
positioning its technology for the licensing of a Web-based biometric
identification server for e-commerce companies and other companies which rely on
Web-based transaction applications. This initiative has involved transitioning
the Company's technology to focus on identification applications for large
databases and Web-based server identification applications, including porting to
multiple platforms and peer group reader technology. These efforts have resulted
in the de-coupling of the Company's core identification algorithm from the
Company's reader technology, thereby providing for the VST identification
algorithm to be used with reader technologies available from other
manufacturers.
The Company's Web-based biometric identification server architecture was
designed to provide for end-user convenience and security as a plug-in component
for Internet, Intranet, e-commerce,
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business to business and internal corporate information access applications. The
Company intends to aggressively pursue the licensure of this application.
On August 16th, 2000, the Company received bridge financing in the amount of
$200,000 from the Shaar Fund Ltd., the Company's principal institutional
investor. The loan bears interest at a rate of 10% per annum and is due on the
earlier of November 30th, 2000 or the Company's completion of a private equity
financing resulting in gross proceeds to the Company of at least $1, 250,000.
Safe-Harbor Statement:
Statements contained herein and in other public statements by Company and it
officers, other than historical data, constitute forward-looking statements.
When used in this document, the words "estimate," "project," "intends,"
"expects," "believes" and similar expressions are intended to identify
forward-looking statements regarding events and financial trends that may affect
the company's future operating results and financial position. Such statements
are not guarantees of future performance or events and are subject to risks and
uncertainties that could cause the Company's actual results or financial
position to differ materially from those included within the forward-looking
statements. Such factors include, but are not limited to, the Company's ability
to successfully develop technology which meets or exceeds specifications
according to contractual performance criteria, as well as those risks set forth
under the caption "RISK FACTORS" in the Company's Annual Report on SEC Form
10-KSB and other filings with the Securities and Exchange Commission. The
Company undertakes no obligation to disclose any revision to these
forward-looking statements to reflect events or circumstances after the date
made or to reflect the occurrence of unanticipated events.
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FOR MORE INFORMATION CONTACT:
Mr. Jeff Brown @ 651-687-0414
SAC Technologies, Inc.
