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American Custom Components Targets Third Quarter Production Start For State-of-the-Art Retail Shelf Price-Tag System; Mettler-Toledo International Signs Letter of Intent With Tagnology.


SANTA ANA Santa Ana, city, El Salvador
Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region.
, Calif.--(BUSINESS WIRE)--June 3, 1998--

Custom Electronic Parts Developer Gears Up for Production of Revolutionary New Electronic Pricing System Noun 1. pricing system - a system for setting prices on goods or services
system - a procedure or process for obtaining an objective; "they had to devise a system that did not depend on cooperation"
 That Costs a Fraction of Competing Technologies; World's Largest Marketer of Precision Instruments for Food Retailing to Handle Installation and Service

American Custom Components Inc. (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
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) Wednesday announced that it expects to begin production of the new Tagnology(TM) Electronic Retail Shelf Price-Tag System in the calendar third quarter of 1998. Mettler-Toledo International Inc. (NYSE NYSE

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) has executed a letter of intent to handle the domestic installation and service on the Tagnology(TM) system.

Switzerland-based Mettler-Toledo International, well-known in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  for its Toledo weighing scales, is the world's largest manufacturer and marketer of precision weighing instruments for use in laboratory, industrial and food retailing applications. Mettler- Toledo services a worldwide customer base in more than 100 countries. Sales in 1997 were $878 million.

Sergio Peratoner, president of Commerce, Calif.-based Tagnology Inc. stated: "Mettler-Toledo's formidable reputation for quality and extensive global reach make them a compelling choice to handle the installation and service on our new system.

"In the U.S. there are approximately 120,000 stores with auto-price file capabilities," said Peratoner. "Competing electronic price-tag systems have had a cost burden of around $240,000 per store, $28.8 billion industry-wide. Our system costs only about $60,000 per store, $7.2 billion industry-wide -- a $21.6 billion savings.

"Our immediate goal is to capture one-third of the potential domestic market, an estimated $2.4 billion," he said. "So it is of important strategic value to work with a premier industry giant such as Mettler-Toledo."

Tagnology is a new-technologies customer of American Custom Components, which, in addition to developing proprietary components for the new system, has an exclusive contract to assemble the system. American expects to allocate most of the manufacturing and assembly work to its new low-cost offshore production facility in the West Indies West Indies, archipelago, between North and South America, curving c.2,500 mi (4,020 km) from Florida to the coast of Venezuela and separating the Caribbean Sea and the Gulf of Mexico from the Atlantic Ocean. .

Founded in 1994, American Custom Components utilizes a unique rapid-response development process combining sophisticated component and design engineering with internally maintained molding and tooling facilities. This turnkey capability has allowed American to provide OEMs with new custom-designed components in a fraction of the time required by larger competitors. -0-

Included in this release are "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.
" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.

    CONTACT:  The Michelson Group Inc.
               800/824-4011, Ext. 120


COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Article Type:Article
Geographic Code:1USA
Date:Jun 3, 1998
Words:476
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