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Alpha Pro Tech, Ltd. Forms Joint Venture in India for Production of Building Products for Alpha ProTech Engineered Products, Inc.


NOGALES Nogales (nōgä`lās), city (1990 pop. 19,489), Santa Cruz co., S Ariz. on the Mexican border with its adjacent city, Nogales (1990 pop. 105,873), Sonora, NW Mexico. There are copper, silver, and lead mines. , Ariz. -- Alpha Pro Tech (AMEX AMEX

See: American Stock Exchange
:APT)(CHX See Chicago Stock Exchange.

CHX

See Chicago Stock Exchange (CHX).
:APT)

--Joint Venture to Provide Increased Capacity

--Company Expects Significant Cost Savings

Alpha Pro Tech (AMEX:APT)(CHX:APT) is a leading developer and manufacturer of proprietary materials for disposable protective apparel and consumer products. Alpha ProTech Engineered Products, Inc. has announced today that it has signed a joint venture with a manufacturer in India for the production of building products. This joint venture positions Alpha ProTech Engineered Products to respond to current and expected increased product demand for synthetic roofing underlayment, and future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality extrusion coated fabrics.

Under terms of the joint venture agreement, a private company, Harmony Plastics Private Limited (Harmony), will be owned on a 50/50 basis by Alpha ProTech Engineered Products, Inc. and Maple Industries and Associates the India shareholders. Alpha ProTech Engineered Products, Inc. and Maple Industries and Associates will each contribute $350,000 for startup capital, and Alpha ProTech Engineered Products, Inc. will make a long term advance of $1 million for materials. This advance is non interest bearing and $500,000 is to be repaid monthly over a six year term and the balance of $500,000 is to be paid in the seventh year .The India shareholders will arrange a bank loan of $1.65 million, guaranteed exclusively by the India shareholders and the assets of Harmony Plastics Private Limited. As a result, the total initial funding will be $3.35 million, of which Alpha ProTech Engineered Products, Inc. will contribute approximately $1.35 million.

This capital will be utilized to purchase an existing 33,000 square-foot manufacturing facility in India; this facility includes manufacturing equipment necessary to produce roof underlayment. Harmony will also build a new 60,000 square-foot facility for the additional manufacturing of roof underlayment and other building products.

Al Millar, Alpha ProTech's President, commented, "This agreement will allow us to significantly increase our manufacturing capacity with an expenditure of only $1.35 million. We are also expanding our manufacturing facility in Valdosta, Georgia The city of Valdosta is the county seat of Lowndes County, Georgia, United States. It is the principal city of the Valdosta, Georgia Metropolitan Statistical Area. As of the 2000 census, the city had a total population of 43,724.  to 50,000 square feet to meet future demands for our building products. Between our Valdosta plant, and this joint venture in India, we have taken necessary steps to cover current and expected future needs. We will, because of this joint venture, enjoy competitive pricing, enabling us to improve our margins for these products over time. We have already seen good response for our building products."

Harmony will be managed by four directors on the Company's board, including Sheldon Hoffman (Alpha ProTech's Chief Executive Officer) and Lloyd Hoffman (Alpha ProTech's Chief Financial Officer), and two directors appointed by the India shareholders.

Alpha ProTech Engineered Products, Inc. has signed mutually exclusive Adj. 1. mutually exclusive - unable to be both true at the same time
contradictory

incompatible - not compatible; "incompatible personalities"; "incompatible colors"
 agreements with Perma "R" Products, Inc., a Grenada, Mississippi Grenada is a city in Grenada County, Mississippi, United States. The population was 14,879 at the 2000 census. It is the county seat of Grenada CountyGR6.  based company in the construction industry, for the distribution of Alpha Pro Tech's roof underlayment and house wrap products.

"The market acceptance of our products, coupled with our ability to secure a distributor with the resources and reputation of Perma 'R' Products, has reinforced our growing confidence in this exciting product line," Mr. Millar continued. "We are taking the next step with this joint venture, and believe this will set the stage for continued growth and improved margins."

About Alpha Pro Tech, Ltd.

Alpha Pro Tech, Ltd. develops, manufactures and markets innovative disposable and limited-use protective apparel products for the medical, dental, industrial, clean room and food service markets. In addition Alpha ProTech Engineered Products, Inc. manufactures and markets a line of building products. The Company has manufacturing facilities in Salt Lake City, Utah For ships of the United States Navy of the same name, see .
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C.
; Nogales, Arizona Nogales is a city in Santa Cruz County, Arizona, United States. The population was 20,878 at the 2000 census. According to 2005 Census Bureau estimates, the population of the city is 20,833.[1] The city is the county seat of Santa Cruz County. ; Janesville, Wisconsin Janesville is a city in southern Wisconsin. It is the county seat of Rock CountyGR6 and the principal municipality of the Janesville, Wisconsin Metropolitan Statistical Area. As of the 2000 census, the city had a population of 59,498. ; and Valdosta, Georgia. For more information and copies of all news releases and financials visit Alpha Pro Tech's Website at http://www.alphaprotech.com.

This news release contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 that are made pursuant to the Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in registration statements, annual reports and other periodic reports and filings of the Company filed with the Securities and Exchange Commission. All statements, other than statements of historical facts, which address the Company's expectations of sources of capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. As a result, there can be no assurance that the Company's future results will not be materially different from those described herein as "believed," "anticipated," "estimated" or "expected," which reflect the current views of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof here·of  
adv.
Of this.


hereof
Adverb

Formal or law of or concerning this

Adv. 1. hereof - of or concerning this; "the twigs hereof are physic"
. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
     2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or
 on which such statement is based.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 14, 2005
Words:826
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