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COMPETITIVE
TECHNOLOGIES, INC.
777
Commerce Drive, Suite 100
Fairfield,
Connecticut 06825
On
December 21, 2006, Competitive Technologies, Inc. issued a press release
announcing the filing of a definitive proxy statement. A copy of the press
release is attached.
COMPETITIVE
TECHNOLOGIES FILES DEFINITIVE
PROXY STATEMENT
-
Highlights long-term growth strategy -
Fairfield,
CT (December 21, 2006) - Competitive Technologies, Inc. (AMEX: CTT),
a
full
service technology transfer and licensing provider, today
announced that it has filed its definitive proxy statement for the 2006 fiscal
year.
Additionally,
the Company announced that its Board of Directors previously sent a letter
to
shareholders regarding the strategic plan that management is implementing to
position the Company to produce sustainable revenue and earnings improvement
over the long-term.
“The
next
few years should be an exciting time as we believe we will begin to see the
tangible results of the investments and efforts now underway,” stated D.J.
Freed, President and Chief Executive Officer of Competitive Technologies, Inc.
“We have a focused and energetic management team and a talented group of
business professionals. We believe that this team has the ability and fortitude
to transform the Company into a business that delivers consistent profitability
and improved shareholder value.”
Competitive
Technologies’ Strategy
The
letter states, “Our goal for the Company is to create shareholder value by a
continuous increase in our recurring revenue and by expanding our technology
pipeline, while at the same time replacing revenue from expiring patents and
developing new sources of revenue. We believe that a broad revenue base is
the
key to our success. Previously, the Company’s business model was built around
the hoped for success of a very limited number of technologies. While that
approach resulted in periods of success and profitability as we won certain
patent lawsuits or were able to commercialize individual technologies for a
period of time, it also meant that we were subject to significant volatility
and
risk.”
“Under
the prior strategy, with almost all of the Company’s attention focused on a
single technology, the Company was left vulnerable to decreased royalties from
expiring patents and a risky reliance upon litigation success that we ultimately
may not have won. That approach resulted in a technology pipeline practically
devoid of commercially viable technologies at the time our current CEO, Dr.
D.J.
Freed, was appointed.”
“Over
the
past 18 months, we have focused our efforts on creating an infrastructure that
we believe will provide the foundation to turn your Company around. As we have
consistently reported to you over the past year, this will take time and effort,
but our pipeline of technologies is starting to fill, and we are encouraged
by
our progress. In addition, the Board of Directors has authorized the retention
of First Analysis Securities Corporation to develop additional options beyond
our corporate model to assist in providing new revenue sources and increased
shareholder value.”
“Our
balance sheet is strong and debt free. Our strategic plan is designed to broaden
our revenue base, increase recurring revenues and lower our dependence on a
single “home-run” technology. We believe we are taking the appropriate steps to
achieve sustainable growth and profitability and, in turn, increase shareholder
value.”
Proxy
Solicitation Against Competitive Technologies
The
letter also addresses a group called the “The Committee to Restore Shareholder
Value” (the “Nano Group”), which has filed proxy material with the SEC. That
group is affiliated with John B. Nano, a former President and Chief Executive
Officer of Competitive Technologies, who was terminated by the Company in June
2005, and who is currently involved in litigation with the Company.
According
to the Nano Group’s proxy statement filed with the SEC, if the Nano Group were
to prevail, Mr. Nano would get his old job back, and furthermore, would agree
to
resolve his pending litigation with the Company. Such a resolution, however,
would come at a steep price and would include an immediate payout to Mr. Nano
in
the amount of at least $2.5 million, including alleged back salary, bonus and
payment of substantial legal fees. The Board does not believe that paying Mr.
Nano $2.5 million in cash is in the best interest of the Company.
More
information on the filing and a complete copy of the letter is available at
the
SEC website, http://www.sec.gov
under
CTT company filings.
About
Competitive Technologies, Inc.
Competitive
Technologies, established in 1968, is a full service technology transfer and
licensing provider, focused on bringing the intellectual property assets of
its
clients to the marketplace. CTT specializes in identifying, developing and
commercializing innovative technologies in a variety of areas, including life
and physical sciences, electronics, and nanotechnologies. Through its global
distribution platform, CTT maximizes the value of its clients’ intellectual
property assets. For more information, please visit: www.competitivetech.net.
Statements
about our future expectations, including development and regulatory plans,
and
all other statements in this press release, other than historical facts, are
“forward-looking statements” within the meaning of applicable Federal Securities
Laws, and are not guarantees of future performance. If and when used herein,
the
words “may,” “will,” “should,” “anticipate,” “believe,” “intend,” “plan,”
“expect,” “estimate,” “approximate,” and similar expressions, as they relate to
us or our business or management, are intended to identify such forward-looking
statements. These statements involve risks and uncertainties related to our
ability to obtain rights to market technologies, market acceptance of and
competition for our licensed technologies, growth strategies and strategic
plans, operating performance and financing of our operations, industry trends,
and other risks and uncertainties inherent in our business, including those
set
forth in Item 1A under the caption “Risk Factors,” in our most recent Annual
Report on Form 10-K for the year ended July 31, 2006, filed with the Securities
and Exchange Commission (“SEC”) on October 30, 2006, and other factors that may
be described in our other filings with the SEC, and are subject to change at
any
time. Our actual results could differ materially from these forward-looking
statements. We undertake no obligation to update publicly any forward-looking
statement.