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NEWS RELEASE
BriteSmile, Inc.
490 North Wiget Lane
Walnut Creek, CA 94598
Contact: Investors:
Paul A. Boyer
Chief Financial Officer
925-941-6260
BRITESMILE, INC. ANNOUNCES $15.5 MILLION INVESTMENT
Company Also Files its Form 10-KSB
Walnut Creek, CA--June 30, 2000 - BriteSmile, Inc. (Nasdaq: BSML), the
leading national provider of advanced teeth whitening solutions, today announced
that it has sold in a private placement its 5% Convertible Subordinated Notes
due June 29, 2005 in the aggregate principal amount of $15,583,333 to nine
investors including: Pequot Private Equity Fund II, L.P.; Pequot Partners Fund,
L.P.; Pequot International Fund, Inc.; CapEx, L.P.; Pacific Mezzanine Fund;
Gasper Lazzara, Jr.; John Reed; LCO Investments Limited; and Andrew McKelvey.
The Notes are convertible into 2,521,575 shares of Common Stock of BriteSmile at
a conversion price of $6.18. The Company also issued warrants to the investors
to purchase a total of 1,260,787 shares of Common Stock, exercisable for five
years at $7.21 per share.
Several shareholders and directors of the Company who purchased Notes in
the offering have also agreed to purchase up to an additional $3,916,668 of the
Notes in the event that other investors do not purchase that amount of the Notes
on or before July 31, 2000 on similar terms.
The Company also announced that it has filed its annual report on Form
10-KSB for the fiscal year ended April 1, 2000. The Company previously
announced the financial results of the fiscal year ended April 1, 2000.
The $15.5 million investment will be used for general working capital
purposes, including funding for the Company's expansion plans.
About BriteSmile
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BriteSmile has developed and manufactures the most advanced teeth-whitening
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technology available, as well as manages state-of-the-art BriteSmile
Professional Teeth Whitening Centers. BriteSmile Centers are currently operating
in Beverly Hills, Irvine, Pasadena, Palo Alto, Walnut Creek and La Jolla, CA;
Honolulu, HI; Houston, TX; Denver, CO; Boston, MA; Coral Gables, Ft. Lauderdale
and Boca Raton, FL, and Atlanta, GA. The Company has planned openings of six
additional Centers in New York, NY; Chicago, IL; Phoenix, AZ; San Francisco, CA;
Dallas, TX and Seattle, WA by March 31, 2001. In addition to BriteSmile Centers,
the Company has signed more than 700 Associated Centers. Of the BriteSmile
Associated Centers, more than 115 are located outside of the United States, in
countries around the world including Argentina, Japan, Singapore, Switzerland,
France, Holland, Italy and Belgium. For more information about BriteSmile's
procedure, call 1-800-britesmile or visit the Company's Website at
www.britesmile.com.
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This release, other than historical information, consists of forward-looking
statements that involve risks and uncertainties such as the development and
introduction of new products, acceptance of those new products in the
marketplace and development of new strategic and marketing relationships in the
United States and internationally. Readers are referred to the documents filed
by BriteSmile with the Securities and Exchange Commission, specifically the
Company's most recent reports on Forms 10-KSB and 10-QSB, that identify
important risk factors which could cause actual results to differ from those
contained in the forward-looking statements. BriteSmile and its affiliates
disclaim any intent or obligation to update these forward-looking statements.
