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EXHIBIT 99.1
SAFE TECHNOLOGIES ISSUES AN ADDITION TO
MANAGEMENT REPORT TO SHAREHOLDERS
Palm Beach, FL. June 28, 2000, - Safe Technologies
International, Inc., (OTC BB: SFAD) announced today
that the Company has entered into a binding letter of
intent with the controlling shareholder of two
acquisition companies.
Brad Tolley, V. P. of Investor Relations said, "these
acquisitions are consistent with our business plan of
growth by acquisition with the objective of increasing
shareholder value. Due diligence and certified audits
are underway. It is expected that the first acquisition
will close within 45 days."
The first slated acquisition will be of a four year old,
Automobile superstore chain, with a hub-and-satellite
group of five stores in Florida. Their business strategy
presents a 'New Car Alternative', displayed in an
upscale showroom setting. Growth plans are a 'niche'
for national 'Secondary Market' locations. The unaudited
financial statements of this company for 1999 reflect
assets of $15,000,000 and net after-tax profit of
$678,000 on revenues of $71,000,000. Safe Technologies
will acquire at closing an 80% equity ownership position
in this company.
Mr. Tolley continued, "we are also very pleased with the
second acquisition prospect which relates to the
construction industry, offering us tremendous potential
for global expansion. The acquisition includes patented
proprietary systems, three years of R&D, management
contracts, etc. To date, the business development
endeavors of this acquisition have resulted in the
development of several revolutionary bonding and
strength proprietary products for the rehabilitation
of infrastructures. e.g., water and sewerage systems,
storm water systems, airports, bridges, highways,
tunnels, roofs and buildings. These products can also be
used in new construction. Revenue projections for the
first year after acquisition are $12,000,000, in the
second year are $47,268,000, and are $132,726,000 in the
third year. SFAD will acquire at closing an 80% equity
ownership position in this company as well."
Mr. Tolley concluded with, "It is certainly our intention
to remain an Internet player. Management believes that
the acquisition of these bricks and mortar businesses
when combined with Safe Tech's existing core competencies
in the Internet based e-commerce arena, will create the
opportunity for a particularly robust "bricks-and-clicks"
business model, significantly enhancing our market
position. In connection with these acquisitions, SFAD
plans to open a corporate office in Tampa, FL in addition
to our existing Palm Beach, FL office."
SOURCE: Safe Technologies International, Inc.,(SFAD)
CONTACT: Brad Tolley VP Investor Relations
TEL: 561-832-2700
EMAIL: [email protected]
HTTP:// www.safetechnologies.com
Forward-Looking Statements: Except for the historical
information contained herein, this news release may
contain forward looking statements within the meaning of
Section 27A of the Securities Act of l934, as amended,
that may involve risks and uncertainties, including those
relating to: (i) the Company's ability to consummate the
closing of the acquisitions referred to above; (ii) the
ability to successfully integrate the acquisition
companies' business models into the existing business
model of Safe Technologies; (iii) the accuracy of the
preliminary unaudited financial results; (iv) the
ability of the target companies to achieve the projected
levels of revenues after the combination; (v) the
effectiveness of management of the prospective combined
entity; (vi) the availability of suitable financial
resources to launch the business plan; (vii) the
capabilities of key management personnel; (viii) the
unproven market for SFAD's existing products and services
on the Internet platform; (ix) the reported financial
performance of the first acquisition target stated above;
(x) the successful development of construction industry
markets for the patented proprietary systems; and (xi)
any other risk detailed from time to time in the
Company's SEC reports, including, but not limited to,
Form 10-KSB for the year ended December 31, 1999 and
subsequent SEC filings.
