Boulder City, NV, March 26, 2013 (GLOBE NEWSWIRE) -- As Amerityre Corporation (OTCBB:AMTY) enters the fourth quarterof our fiscal year, we felt it timely to report on our progressyear to date. Needless to say, we had a slow first half of fiscal2013. A shift in seasonality within our industrial products linecoupled with significant reduction in export sales negativelyimpacted the business. Going forward Amerityre is implementing astrategy to diversify the customer base. We are currently well intoour third quarter and are pleased to report sales have improved andshould continue to do so for the remainder of fiscal 2013. Thefollowing information will update our progress by productgroup. Low duty cycle foam tires - Current marketing efforts arefocused on building distribution to expand our business and productsales. A new dealer/distributor development program was rolled outin October 2012. This program is designed to build sales volume andadd value to the Amerityre brand. Results are encouraging as wehave established new distribution channels in the Midwest, East andSouthwest regions of the U.S. market. In tandem, high volumeoriginal equipment manufacturers (OEM) are being pursued.Currently, potential OEM customers are testing Amerityre productsfor use on their equipment. The Company received a significant"test order" from a leading US wheelbarrow OEM. This order wasdelivered in February. A second order is now in the pipeline. Ourgoal is to receive approval as production supplier for the nextbusiness cycle which begins in July 2013. In addition, severalmajor medical mobility and lawn & garden companies arescheduled to complete their testing of Amerityre products duringthe 3rd quarter of fiscal 2013. These new customers are expected toincrease revenues as the lawn & garden season begins. Duringthe 2nd quarter of fiscal 2013, we experienced a 14% increase inthe number of sales orders over the previous year. From Canada wehave been notified that current "open cell" tires purchased fromChina are not performing as expected. Amerityre has beenasked to prepare the factory for a large influx of demand as thisbusiness will be transitioned back to the US from China. Weestimate this will require Amerityre to transform an additional250,000 pounds of material into finished product. Due to thesedevelopments, we believe that sales revenues during the 3rd and 4thquarters will increase significantly over the first half of thefiscal year.
Solid forklift tires - Manufacturing process improvements wereimplemented during the 4th quarter of fiscal 2012. As a result, allforklift tires are being consistently produced at a high qualitylevel. Sales and marketing efforts are underway to rebuild customerconfidence in the product. Forklift tire sales volumes for duringthe first half of fiscal 2013 are close to levels attained duringthe same period in the prior year. Furthermore, no warranty claimshave been received since the implementation of the new processimprovements. In addition, capital investments have been made toeliminate production bottlenecks in curing and rim blasting. Theresult is a lower cost to produce forklift tires through increasedproductivity. It is anticipated that sales of forklift tires willexceed fiscal 2012 levels as we have more than doubled the dealernetwork over the previous year. In retrospect, the closing of theforklift production line during the 3rd quarter of fiscal 2012 waswarranted as all process issues have been addressed and the productperformance is now up to standard. Currently, production is runningwell and inventory is available Boulder City, NV and Revenna, OH.We expect sales volumes to begin increasing in fiscal Q4.Agricultural tires - We are currently pursuing two segments ofthe agricultural tire market (irrigation and planting). The Companycompleted a redesign of its agricultural products in the 4thquarter of fiscal 2012. The newly designed tires are now enteringthe market and sales are growing as expected. We have received aninitial "test orders" for over 80 pivot tires used in irrigation.Two irrigation OEMs will test the Amerityre pivot tire solutionduring the upcoming irrigation season. These developments set thestage for significant growth in this product segment. Productdesign for new seeder tire dimensions has been completed andinitial order from a significant customer is in hand. Thisproduct will be ready for shipment in March 2013. Agricultural tiresales volumes during the 3rd and 4th quarters of fiscal 2013 areprojected to grow significantly over prior year.
Growth activity for any business requires adequate funding.During fiscal 2012 this funding was not in place and set thecompany's growth path off course during the fourth quarter.Unfortunately this carried over into the first quarter of fiscal2013 as well. During the past eight months management has beenworking hard to secure financing that will support the businesslong term. Although we have not completed this task, we feel thereis reasonable belief that it will be in place before the end of ourfiscal year. In the meantime we are reviewing all short-termfinancing options available.In closing, we believe Amerityre has a bright future as a U.S.manufacturing company providing cutting edge urethane technologiesand products to niche markets. Currently these markets use rubberproducts which do not always meet customer expectations.Amerityre's opportunities become more evident with each passing dayas we move forward into our markets. As all of you know, Amerityreis moving in a new direction. The journey will be hard and willrequire commitment and time to reach the intended destination. Withyour help and support we will be successful. Notice Regarding Forward-Looking Statements inthis press release which are not purely historical areforward-looking statements and include any statements regardingbeliefs, plans, expectations or intentions regarding the future.Actual results could differ from those projected in anyforward-looking statements due to numerous factors. Theseforward-looking statements are made as of the date of this newsrelease, and we assume no obligation to update the forward-lookingstatements, or to update the reasons why actual results coulddiffer from those projected in the forward-looking statements.Although we believe that any beliefs, plans, expectations andintentions contained in this press release are reasonable, therecan be no assurance that any such beliefs, plans, expectations orintentions will prove to be accurate. Investors should consult allof the information set forth herein and should also refer to therisk factors disclosure outlined in our annual report on Form 10-Kfor the most recent fiscal year, our quarterly reports on Form 10-Qand other periodic reports filed from time-to-time with theSecurities and Exchange Commission.
CONTACT: John Goldberg, Director Amerityre Corporation firstname.lastname@example.org (702) 835-7669