Eurotech, Ltd. Discloses New Business Strategy To Shareholders

Eurotech, Ltd. Discloses New Business Strategy To Shareholders

Eurotech, Ltd. Discloses New Business Strategy To Shareholders

    FAIRFAX, Va.--(BUSINESS WIRE)--Dec. 13, 2002--Eurotech, Ltd. (AMEX:EUO), www.eurotechltd.com, today announced its business and positioning strategy based on the current and future status of the company.
    The company's diversified product portfolio and infrastructure requirements, working capital and future financing needs, as well as the current maximized share structure were critical factors in determining the strategy and planning.
    The company's recently announced transaction with Markland Technologies, Inc. (OTC BB: MKLD.BB) to further develop Eurotech's Acoustic Core(TM) technology in the Homeland Defense sector, which transaction is expected to close in the near future, will be the first of several initiatives in Eurotech's new business plan.
    The Company is focusing on its original plan to sell, spin-off or otherwise position the various technologies within its portfolio as they approach commercial maturity. Acoustic Core(TM)'s recent developments and momentum within the Homeland Security sector resulted in the transaction with Markland.
    When such transaction is closed, Eurotech's 80% ownership interest in Markland will have given the Acoustic Core(TM) technology a substantially greater perceived market value by virtue of the number of shares in Markland that Eurotech will own (239,927,344) and the most recent value of the Markland shares as traded on the NASDAQ market.
    The value of such potential holdings, assuming the actual closing of the Markland transaction, is further subject to the maintenance of such share price at the time that Eurotech intends to sells any or all of such securities, for which there can be no assurances.
    Given both the regulatory issues restricting such sales by Eurotech and the lack of liquidity for the market for Markland shares, there can be no assurances that the future sale price for Eurotech's holdings in Markland will be equal to the current market for these same shares.
    The Markland transaction represents the first of several potential technology restructurings that Eurotech is considering with respect to its portfolio. Eurotech's current management and infrastructure will manage and devise appropriate development structures for each technology as it matures to finance and advance the technologies as they come closer to the commercial markets.
    Eurotech management believes that this strategy will substantially reduce Eurotech's overhead and burn rate. The company is planning to market and sell its technologies and related products in the Homeland Defense, Environmental or Chemical/Electronic sectors, as the case may be.
    Eurotech President, Don V. Hahnfeldt stated, "The Company has no current intentions to sell any of the new subsidiary shares. Eurotech is confident its new Homeland Defense subsidiary, Markland, will build long term business value and asset value for our shareholders."
    As previously announced, Eurotech's preferred stockholder, Woodward LLC, has agreed to cancel its rights to approximately $5.7 million of Eurotech's Series B 5% cumulative convertible preferred stock (the "Series B Preferred"), which, as previously announced, Woodward is entitled to receive, in exchange for a security interest in the shares of Markland being acquired by Eurotech and 50% of the proceeds generated from future sales by Eurotech of these same shares (the "Security Arrangement").
    The 50% of the proceeds would be allocated against the repayment of the $12.5 million preferred to be issued to Woodward, or the right to receive such shares of Series B Preferred if they have not been issued, with no additional payments thereafter.
    At such time as Eurotech has redeemed all of the Series B Preferred, the balance of the proceeds derived from the sale of the Markland Shares shall be Eurotech's, assuming that there are proceeds from the sale of the Markland shares in excess of $25 million (50% of the proceeds up to the $25,000,000 shall be distributed to Eurotech ($12,500,000) and 50% to Woodward ($12,500,000) to redeem the shares).
    In order for Eurotech to be in a position to derive proceeds from the sale of the Markland shares equal to $25,000,000, and be entitled to the excess amount after fully redeeming the Series B Preferred, the average price per share (net of commissions or other charges) received by Eurotech for each Markland share will have to be equal to or greater than approximately $.11 per share.
    The company also recently announced that it would seek to have its common stock traded on the OTC Bulletin Board. The company stated, however, that such a move would not preclude the company from seeking a national listing with either Amex or the NASDAQ small cap in the future, subject to the company meeting applicable listing requirements.

    About Eurotech, Ltd.

    Eurotech is a corporate asset manager seeking to acquire, integrate and optimize a diversified portfolio of manufacturing and service companies in various markets. Our mission is to build value in our emerging technologies and in the companies we acquire and own, providing each with the resources it needs to realize its strategic business potential.
    Eurotech's emerging technology business segment develops and markets chemical and electronic technologies designed for use in Homeland and Environmental Security. Following the closing of the previously announced exchange with Markland Technologies, Inc., the Homeland Security segment of the business shall be conducted through Markland.
    Eurotech's portfolio of technologically advanced products includes: (i) proprietary materials created to specifically solve the serious problems of how nuclear and other hazardous wastes are cost effectively contained; (ii) advanced performance materials for use in industrial products such as coatings and paints; (iii) automatic detection of explosives and illicit materials though its Markland Technologies subsidiary, and; (iv) cryptographic systems for secure communications, all of which can be used in Homeland and Environmental Security.

    "Safe Harbor Statement" Under the Private Securities Litigation Reform Act of 1995

    Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of officials of the Company during presentations about the Company are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act").
    Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions.
    In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management of the Company, are also forward-looking statements as defined by the Act.
    Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: insufficient cash flow to continue to fund the development and marketing of the Company's products and technology; a rejection of the Company's products and technologies by the marketplace; and disputes as to the Company's intellectual property rights.
    Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about the Company, its technologies, economic and market factors and the industries in which the Company conducts business, among other things.
    These statements are not guarantees of future performance and the Company and the Company has no specific intention to update these statements. More detailed information about those factors is contained in the Company's filings with the Securities and Exchange Commission.

    CONTACT: Eurotech, Ltd.
                 by
             ECON Investor Relations, Inc.
             Dawn Van Zant, 800/665-0411
             dvanzant@investorideas.com