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TUESDAY JUNE 6, 12:37 PM EASTERN TIME
COMPANY PRESS RELEASE
SOURCE: Chromatics Color Sciences International, Inc.
CHROMATICS COLOR SCIENCES INTERNATIONAL COMPLETES ACQUISITION OF GORDON
LABORATORIES
GORDON CEO BRIAN FITZPATRICK BECOMES PRESIDENT & COO OF CHROMATICS
NEW YORK, June 6/PRNewswire/ -- Chromatics Color Sciences International, Inc.
(Nasdaq: CCSI-news) announced today that it has completed the acquisition of
Gordon Laboratories, Inc., a Carson City, Calif.-based formulator and
manufacturer of cosmetics, hair care and other personal care products. The
Company has acquired approximately an 85% equity interest in Gordon for
approximately $5.5 million in cash and stock and will acquire the remaining
interest within one year.
Brian Fitzpatrick, the former Chairman, President and CEO of Gordon, has been
named President & Chief Operating Officer of CCSI and will relocate to the
Company's New York headquarters. Mr. Fitzpatrick has been the Chairman,
President & CEO of Gordon since April 1996 and, prior to this, he served as
president of several electronic manufacturing companies after working for the
Polaroid Corporation in its industrial marketing division. He graduated with an
MBA degree in Finance & Marketing from Adelphi University in 1986 and received
a BS degree in Marketing from Seton Hall University in 1975.
The Company's Chief Executive Officer, Darby Macfarlane, commented, "We believe
this acquisition is a very good strategic move for us for several reasons.
First and foremost, Brian Fitzpatrick is an outstanding executive with whom
I've worked for several years. We are very fortunate to acquire his skills.
Along with Brian, the acquisition provides us with an experienced management
team fully operational in the cosmetics and beauty care industry, as we move to
establish our presence there."
She said, "This transaction diversifies and significantly enhances our revenue
stream immediately, and positions us well for long-term growth."
Mrs. Macfarlane indicated that Gordon will provide CCSI with needed
infrastructure to commercialize
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its color science technology in the cosmetics and hair colorant markets. The two
companies already had entered into a licensing agreement to commercialize the
marketing of the Company's new, hand-held Colormate(R) device and system for
selecting personalized colors of cosmetics, hair color and beauty related
products, including custom-blended cosmetic foundations. The Company expects to
capitalize on Gordon's manufacturing and marketing capabilities to generate
expanded revenues from laboratory product chromaticity studies, color-measuring
systems and related products.
Gordon also has the capability to produce TLc-Lensette(R) calibration standards
for the Company's medical device, the Colormate(R) TLc-BiliTest(R) non-invasive
monitoring system for infant jaundice. Ms. Macfarlane said she expects Gordon to
be qualified for the production of calibration standards by the end of the year.
Gordon is recognized within the personal and beauty care industry as a
high-quality formulator, packager and contract manufacturer of a variety of
cosmetics and other beauty care products for branded consumer product marketers
and private label retailers. The Company's customer base consists of leading
brand marketers, major mass merchandisers and direct-sale marketers, including
such leading names as Sears, The Gap, Kmart, Tova, -erber, Herbalife, The Body
Shop, Bath & Body Works and Victoria's Secret. Gordon anticipates revenues of
approximately $7 million for its fiscal year ending May 31, 2000 -- a volume
level it expects to increase significantly, having recently expanded its
production capacity by moving into a custom-designed, state-of-the-art, 60,000
sq. ft laboratory and manufacturing facility in Carson City.
Chromatics Color Sciences International is in the business of color science and
has developed technologies and intellectual properties in this field. The
Company has received clearance from the Food and Drug Administration (FDA) for
the commercial use of its medical device for the non-invasive monitoring of
bilirubin in newborns by healthcare professionals in hospitals, clinics,
pediatrician offices and the home environment. The Company believes its
technologies and intellectual properties may also have medical applications in
the detection and monitoring of other chromogenic diseases, which the Company
defines as those diagnosed or monitored by the coloration of the human skin,
issue or fluid being affected. Medical applications, in addition to the
non-invasive monitoring of bilirubin in newborns, will require additional
clinical trials and FDA clearances for commercial use.
The Company's technologies and intellectual properties also have other
applications including the scientific color measurement and classification of
human skin and certain color-sensitive consumer products, and in determining the
color compatibility of such skin and product color classification for use in a
variety of industries including the cosmetic, beauty-aid and fashion industries.
Certain of the matters discussed in this announcement contain forward-looking
statements that involve material risks to and uncertainties in the Company's
business that may cause actual results to differ materially from those
anticipated by the statements made herein. Such risks and uncertainties include,
among other things, the availability of any needed financing, the ability of the
Company to finalize an amendment to Gordon Laboratories' existing long-term
credit facility on terms acceptable to the Company, the Company's ability to
implement its long range business plan for various applications for its
technologies, the Company's ability to enter into agreements with additional
marketing and distribution partners, the impact of competition, the obtaining
and maintaining of any necessary regulatory clearances applicable to
applications of the Company's technology, management of growth and other risks
and uncertainties that may be detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission, including those set
forth in its annual report on Form 10-K for the year ended December 31, 1999 and
on Form 10-Q for the quarter ended March 31, 2000.
