AdZone Begins Dividend Distribution of Senticore Stock to Shareholders
CALVERTON, N.Y., July 11, 2005 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR), today said the company had begun distributing a dividend of 1,227,330 freely trading shares of Senticore, Inc. (OTCBB:SNIO) to shareholders of record as of October 20, 2004.
The shares are being distributed by AdZone's transfer agent, Island Stock Transfer. The distribution to shareholders, equal to 0.01417 per share of Senticore stock for each share of AdZone stock on the October 20, 2004 record date, when AdZone had 86,594,952 shares outstanding, will be both by mail and posting of shares to shareholder accounts held in street name.
Chairman & CEO Charles A. Cardona said that both he, and his brother, COO John A. Cardona, had waived their right to their portion of shares under the agreement in order to provide a larger distribution to other shareholders.
"This is a proud moment for us," Cardona said. "A dividend of any kind from an early stage company like ours is exceptional, and we hope to be able to further reward our shareholders in the future. We appreciate our shareholders' continued support of AdZone, and believe its promising future, as well as that of Senticore, will hopefully reward investors handsomely."
The company said the shares have been issued to the company by Senticore as part of Senticore's initial payment for participation in a previously announced commercial division contract. Senticore and The Justice Fund (TJF), a soon-to-be public company, signed a non-exclusive contract with AdZone calling for Senticore and TJF to jointly distribute and market NetGet's Internet commercial applications in both Asia and South America over the next four years. The contract anticipates payments for sales made on a continuing basis, with graduated annualized target goals, and with minimum overall revenues to AdZone of $2.5 million over the term of the initial contract.
AdZone Issues Latest Operational Update to Shareholders
CALVERTON, N.Y, May 31, 2005 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR) today issued the company's latest operational report to shareholders. The full text of Chairman & CEO Charles Cardona's comments follows:
May 31, 2005
Dear Fellow Shareholders:
Over the past month, the company has made what we believe is significant progress in moving forward in securing contractual agreements in our commercial, cyber security and defense divisions. In the current week, and the ones following, AdZone senior executives will be meeting and continuing discussions with very senior officials who are potential clients in each of our three respective disciplines.
We are hopeful in the coming month to be able to report several successful engagements. As I reported to you last month, our aggressive pursuit of growth in our commercial division has been as intense as our efforts toward winning defense-related business.
The company will be meeting again this month with leading motion picture industry executives, who are more sensitive than ever to the impact of digital piracy after the highly publicized events surrounding the latest Star Wars movie. In the wake of that problem, the new motion picture anti-piracy program we have developed - an outgrowth of our core technology - has been given a measurably higher level of interest by the industry. We are confident in the months ahead of entering into multiple relationships with motion picture companies that are both independent and those that are members of the Motion Picture Association of America.
We also are now in intensive discussions with several major police departments, both domestic and international, aimed at finalizing agreements calling for usage of AdZone's program designed to identify online child predators. The keen interest shown by these law enforcers in our technology reinforces our belief that this will also be the source of additional incremental revenues in the months ahead.
Immediate announcements of new agreements in one or more of these areas will be made, hopefully before our next shareholder update via conference call in early July, following issuance of our 10-K report for the fiscal 2005 year.
AdZone Research Launches Intercept, A New Service Designed to Combat Feature Film Piracy
HOLLYWOOD, Calif., May 12, 2005 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR) today unveiled a new service, trademarked Inter-Cept(tm), designed to combat feature film piracy in the motion picture industry.
Dan Wasserman, currently AdZone's executive vice president and managing director of global defense, expands his duties and title to oversee the company's anti-piracy efforts.
"Recently passed federal legislation seeking to strengthen anti-piracy laws underscores the efforts currently underway by the film industry and elected officials," said John A. Cardona, president & COO of AdZone. "Dan Wasserman is based in D.C., and is no stranger to Hollywood through his past efforts. He understands both worlds."
Inter-Cept is the latest development by AdZone Research, whose core business is the deployment of Internet surveillance technology. This new service uses that technology in an application designed to detect and interdict film piracy on a global level. The unique aspect of this Internet technology is that it is borderless, and is capable of detection in virtually any language.
"Out of our discussions with film studios, producers, intellectual property attorneys and filmmakers, we discovered everyone understands the problem exists with illegal downloading of product," Cardona noted. "The film industry has seen the effect on the music industry. These downloads cheat the creative and business community out of millions of dollars in revenue. It hurts all phases of distribution, from theatrical release to DVD sales. After months of discussion with industry executives, we believe we have come up with a solution to the problem with Inter-Cept."
"Our Inter-Cept program will assist the motion picture industry in its efforts to identify and shut down illegal web sites which today are operating in the marketplace," said Wasserman. "These sites look authentic, but are actually fronts for criminals, illegally offering first run feature films simultaneously with their theatrical bookings.
"Inter-Cept can help to stop the staggering losses shared by the studios and filmmakers alike. The problem's also a consumer issue," Wasserman noted, pointing out, "consumers may be at risk with their credit card information being processed by these sites."
"We expect Inter-Cept to become an important service AdZone provides to an industry which exports one of America's most recognized product---Hollywood movies," said Cardona.
AdZone Research CEO Updates Shareholders With Latest Operational Report
CALVERTON, N.Y., April 29, 2005 (PRIMEZONE) -- AdZone Research, Inc. (OTCBB:ADZR), reported today that its Chairman & CEO, Charles A. Cardona, has issued the company's latest operational report to shareholders. The full text of his message follows:
April 29, 2005
Dear Fellow Shareholders:
In the fourth fiscal quarter, ended March 31, 2005, the company had modest revenues, principally from the recently launched cyber security division. A full report on fiscal 2005 operations will be contained in the Form 10-K that will be filed with the SEC at the end of June. We will have a conference call with investors after the release of that document to report both on fiscal 2005 results and an initial report on operating highlights pertaining to the first quarter of 2006.
Following our last update report on February 22, we reported two days later that a government laboratory, after five months of intensive tests, finally had validated AdZone's core Internet surveillance technology. Since that time, the company has vigilantly pursued defense-related contracts from potential clients that earlier indicated the government validation we had achieved was mandatory for their ongoing interest.
Recently, in response to a fellow shareholder's inquiries, we said that we could not selectively disclose the timing and content of upcoming news announcements. They will, of course, be made immediately as these events occur. And we are still optimistic about the timetables we have laid out.
There has been no news reported in recent weeks for the simple reason that there has been no hard news yet to report. We understand that certain investors desire news more frequently. But, we believe it is best to work on generating business, revenues, and growing the company rather than producing "fluff" news releases to placate investors focused on short-term horizons and not really interested in building a company with us.
We know the majority of shareholders have an interest in supporting the company long term, which is very encouraging to management. We have grown revenues every one of the past three years and are working very hard to continue doing so.
That being said, I am pleased to report to you today that while we seek out the award of defense-related contracts we have been aggressively pursuing the expansion of the mission and scope of our commercial division. As we have indicated in the past, we believe the revenue opportunities in the long run from commercial applications of our core Internet technology, and acquisitions of companies with similar business models, will far overshadow the defense side - by a factor of as much as 10 times.
Over the past two months, our Chief Operating Officer, John A. Cardona, and Executive Vice President Dan Wasserman, have made several trips to the West Coast to meet with leading motion picture industry executives. Their mission: to discuss the implementation of a brand new motion picture anti-piracy program we have developed that has grown out of our core technology. The program will be officially launched next month, and should result in immediately measurable revenues.
Considering that the motion picture industry is losing approximately $300 million a month to digital piracy, our role in assisting the industry to identify and shut down illegal web sites is expected to be a major source of revenue in the coming year.
Simultaneously, we have completed development on a program for a major police department aimed at identifying online child predators that we also anticipate announcing in May. This program, created in collaboration with the authorities, will also be revenue generating. We believe that police departments across the nation may benefit from our efforts, and that our revenue stream will be commensurately higher as a result of that.
Turning to online advertising revenues, in March, spending jumped by more than 20%, to $814 million, up from $672 million in February. Technology-related ads, at more than $202 million, represented 25% of total online spending.
The importance of these developments was underscored in an article in The New York Times two weeks ago, when the American Research Foundation held its annual convention. Several comments in the feature story are worth your consideration:
"For years," the writer observes, "advertising research was perceived on Madison Avenue as a staid, even quaint field with little practical relevance. Now, as clients increasingly hold agencies accountable for effective ads, the researchers are being eagerly sought out.
"In response, the research industry is intensifying its efforts and looking at issues like trying to determine the return on investment for advertising spending, improving the measurement of audiences in media like television and the Internet, helping agencies identify the most efficient media outlets and increasing the role that market research plays in reaching consumers."
The ability to customize our core Internet technology to respond to these challenges was never more important, and we also intend to play an important role in these arenas in the year ahead. Given a name like "AdZone Research," would you expect anything less?
Sincerely,
Charles A. Cardona
Chairman & CEO
AdZone Research is headquartered in Calverton, N.Y., in a facility that formerly housed major defense contractor Northrop Grumman Corporation. The facility was earlier used for top-secret defense research and development, and was part of the United States Navy's Naval Defense Technology Center.
Through monitoring of more than 500,000 Web sites worldwide, AdZone provides tracking and monitoring of targeted information on the Internet, with an expanded focus on global Internet analysis of security-related data transmissions. For additional information, please visit the company's Web site at http://www.adzoneresearch.com. Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
CONTACT: AdZone Research, Inc.
Charles A. Cardona III
(631) 369-1100
