For immediate release
COMMITTEE TO RESTORE STOCKHOLDER VALUE FILES
DEFINITIVE PROXY STATEMENT AGAINST COMPETITIVE TECHNOLOGIES, INC.
AUGUSTA, GA (JANUARY 3, 2007) THE COMMITTEE TO RESTORE STOCKHOLDER VALUE
announced today the filing on December 26, 2006 with the Securities Exchange
Commission (SEC) of their definitive proxy statement to replace the current
Board of Directors of Competitive Technologies, Inc. (AMEX: CTT), based in
Fairfield, CT. The Committee is firmly committed to restore shareholder value to
CTT by replacing the current Board of Directors, returning to the successful
leadership of John B. Nano, CTT's former President and CEO, and implementing
profitable business strategies.
The filing includes an Urgent Message to all CTT shareholders to VOTE FOR the
Director Nominees selected by the Committee to Restore Stockholder Value to CTT.
DO NOT VOTE for the current directors and management that have been in place the
past 18 months while the stock market value of CTT has declined and share prices
have dropped from over $10 per share to close at $2.32 per share on December 29,
2006, during a record overall positive stock market.
Registered shareholders are urged to vote their BLUE proxy card for the
Committee's slate of Directors. Shareholders who own their CTT shares in the
name of their bank or broker are urged to contact them for instructions on
casting their proxy vote for the Committee's slate of Directors. The Committee
reminds all CTT shareholders that the last dated proxy cast by the shareholder
prevails.
The Committee asks all CTT shareholders to seriously consider the Committee's
important message before casting their vote.
THE COMMITTEE BELIEVES THAT CTT SHAREHOLDERS DO INDEED DESERVE BETTER. CTT
shareholders deserve:
+ Profits vs. losses
+ Rising vs. plummeting stock price
+ Purging of current leadership with their history of poor operating performance
and costly legal actions against shareholders and employees
+ To recover shareholder funds from current management and certain of its
attorneys for insider trading and other violations of law
+ To recover shareholder funds by a "class action" lawsuit against the current
Board members by a group of shareholders
+ A new Board and management team with a proven track record of driving
shareholder value
The Committee is dedicated to these listed goals and has recruited Mr. Nano to
accomplish them, given his proven stellar track record for CTT shareholders in
the past. The slate of Directors selected by the Committee has a proven
reputation of substantial business success, both building and owning businesses,
which have created shareholder value.
Regarding allegations, as noted in CTT's SEC filing of December 28, 2006, by
CTT's current Board of the reason for Mr. Nano's termination, "we lost
confidence ", the Committee believes CTT shareholders should let the results
speak for themselves as to Mr. Nano's accomplishments at CTT: revenue growth,
strong earnings and a rising stock price. CTT stock was the fourteenth largest
percentage gaining stock in 2004 as reported by The Wall Street Journal during
Mr. Nano's tenure. CTT's allegations are counter-intuitive; CTT shareholders
understand the absurdity of the current Board's allegations. Mr. Nano was
terminated after his refusal to sign the certification required by
Sarbanes-Oxley largely due to the insider trading profits gained by certain
current Board members and their affiliates.
For the record, Mr. Nano has actions underway to address misinformation recently
published by the current Board alleging misappropriated use of Company documents
and his receipt of an outside director's fee from MelanoTan Corporation. Mr.
Nano vehemently disputes these false and misleading allegations.
Certain Committee members have brought facts showing insider trading by the
current Board and management to the attention of lawyers for CTT, and have
demanded the recovery of funds for CTT shareholders from losses directly caused
by those violations. Additionally, to recover shareholder funds, a group of CTT
shareholders are preparing to file a "class action" lawsuit against members of
the current Board.
Additionally, prior to joining CTT, Mr. Kiley had been a friend and a golfing
buddy in Virginia of CTT's Chairman, Richard Carver, for many years. Before Mr.
Nano was hired by CTT, Mr. Carver presented his organization chart with Mr.
Kiley as COO of the Company. Mr. Carver chose Mr. Kiley for his position at CTT,
and directed Mr. Kiley's hiring. In light of the fact that Mr. Kiley presented
false academic credentials, the Committee will explore action against management
and Mr. Kiley to recover amounts paid Mr. Kiley.
This is not about Mr. Nano. This is about what is right for CTT's shareholders
and the results speak volumes about the truth.
Under Mr. Nano's leadership at CTT, management delivered on its commitment to
drive revenue growth, improve profitability, strengthen the balance sheet and
significantly increase shareholder value. During the three-year period that Mr.
Nano led CTT, revenue increased 546% and profits increased $9.7 million from a
$4.0 million loss in fiscal 2002, to a $5.7 million profit in fiscal 2005. The
stock price increased from $2.15 per share when Mr. Nano joined CTT in 2002, to
a high of over $15 in March 2005 before insider selling involving the current
Board and management. During Mr. Nano's tenure at CTT, market value increased
from about $10 million in 2002 to over $100 million in 2005.
Licensing agreements were signed with Abbott Laboratories, Bayer Corporation,
Diagnostic Products Corporation, Mayo Clinic, Cleveland Clinic and others, under
John B. Nano's leadership and strategic plan. Mr. Nano resolved litigation and
reached settlements resulting in funds to CTT from JDS Uniphase Corporation,
Unilens and others. CTT acquired new technologies to commercialize, including
nanotechnology bone cement and innovative RFID technology. These licensing
agreements and other actions primarily under Mr. Nano's leadership resulted in
generating 93% of the revenue of $14.2 million in fiscal 2005 with the balance
of only 7% from legal awards.
During his tenure as CTT's President and CEO, Mr. Nano purchased shares of CTT
stock up to a market price of approximately $11 per share. Mr. Nano did not sell
any shares of CTT stock until the current Board terminated his employment,
because he understood what would happen under this current Board and management
following his termination. Mr. Nano was aware that prior to his joining CTT this
same Board had CTT near bankruptcy, under SEC investigation and headed for
delisting by the AMEX. Mr. Nano strongly believed that results under the current
Board and management would again sink to the extremely disappointing levels that
have, in fact, been reported for the last five straight quarters.
CTT's current Board and management have spent $9.6 million in the past five
quarters, and results continue to be declining revenues and deepening losses,
with greater retained revenue concentration on only one technology,
homocysteine. CTT's current Board and management have failed to commercialize a
successful new technology to replace the homocysteine assay technology when the
patent expires in July 2007.
CTT has gone from strong profitability under Mr. Nano's leadership of $5.7
million for fiscal year 2005, to appalling losses today under the current Board.
Profitability for fiscal year 2006 declined to a loss of $2.4 million, from a
profit of $5.7 million for fiscal year 2005, as income declined by $8.1 million.
For fiscal year 2006, revenues declined to $5.2 million from $14.2 million for
fiscal year 2005, or a decrease of $9.0 million or 63%. Revenues continued to
decline for first quarter fiscal year 2007 even further, with a drop to $0.9
million compared to $1.4 million for the same period a year earlier. CTT had a
net loss of $1.1 million for first quarter fiscal year 2007, compared to a net
loss of $0.3 million for the same period in 2006, resulting in losses for five
straight quarters following the termination of Mr. Nano. Retained revenue
concentration in one technology, homocysteine, has increased from 70% for 2006
to 79% in first quarter fiscal year 2007, exposing the Company to greater risk.
Over three years ago, Mr. Freed was appointed Chief Technology Officer with the
primary responsibility to bring into CTT new technologies to commercialize;
however, he now states he has not successfully done that as yet. The Committee
does not believe that the current CTT Board of Directors and its management have
demonstrated the positive actions needed to improve CTT's economic performance.
The Committee to Restore Stockholder Value urges all CTT shareholders to vote
for its slate of Directors. The Committee believes that the extensive
qualifications of their slate of candidates will return to CTT substantial
business experience in CTT's business, a successful track record in managing
growth, and serious management expertise through a legacy team. The Committee
urgently asks for support of stockholders, advisors and brokers to restore CTT
to profitability, to drive growth, and to increase shareholder value.
More information on the Committee's proxy filing (DFRN14A, filed by
non-management on December 26, 2006) is available at the SEC website,
http://www.sec.gov, under company filings. Any questions can be addressed by
contacting the Committee.
Contact: John Derek Elwin III
Tel: 561-789-6449