American Locker Group Incorporated Postal Contract Expiration.JAMESTOWN, N.Y. -- American Locker Group Incorporated (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALGI ALGI American Locker Group Inc. ) announced that 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. Postal Service (USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. ) has advised the Company that it will not be awarded a contract for continued supply of Cluster Box Units (CBUs) to the USPS. The Company's current contracts with the USPS expire February 28, 2005. The USPS has advised the Company that there will be a transition period following expiration of the contracts in which the USPS will continue to purchase CBU's from the Company but the Company has not been advised of the length of the transition period or the expected level of sales to the USPS during the transition period. The USPS has been the Company's largest customer in the last four fiscal years accounting for more than 50% of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in each such fiscal year and the loss of this sales revenue is likely to have an adverse effect on the Company. The Company is actively exploring the development of new markets and strategies to mitigate the effects of this development. 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. Statement under 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 Except for historical information contained in this press release, the matters discussed herein which contain forward-looking statements, including without limitation, statements relating to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) the Company's plans, strategies, objectives, expectations, and intentions are subject to change at any time at the discretion of the Company, (ii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth and inventory, (iii) the impact of the non-renewal of the Company's contracts with the USPS, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. |
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