Bactrol Technologies Completes Acquisition of Military Resale Group.

Business Editors

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--Nov. 15, 2001

Bactrol Technologies, Inc. (OTCBB:BCTL) announced today that it has completed the acquisition of 98.2% of the capital stock of Military Resale Group, Inc.

Previously, Bactrol Technologies was a publicly traded corporate shell.

Formerly a privately owned company, Military Resale Group is in the military resale grocery business, with annual sales approaching $5 million. Bactrol Technologies intends to seek shareholder approval to change its name to Military Resale Group, Inc. Following the acquisition, there are 6,630,004 shares of Bactrol Technologies common stock outstanding. The shares will continue to trade under Bactrol Technologies' symbol -- BCTL -- over the near future. The directors and officers of Military Resale Group have assumed similar capacities at Bactrol Technologies, concurrent with the resignations of their counterparts at Bactrol Technologies at the closing of the acquisition.

Military Resale Group was incorporated in 1997 when it acquired a 50-year-old distributor to the military resale market. For the year ended December 31, 1997, Military Resale Group's annual sales were $750,000. Its annual sales have increased to $4.5 million for the year ended December 31, 2000.

The military resale market is a $15 billion niche market with 13,000,000 authorized patrons, which operates under the aegis of the Defense Commissary Agency (DeCA), a Department of Defense (DOD) agency. The DOD's objective, in this activity, is to operate resale store systems that sell groceries (at commissaries) and general merchandise (at exchanges, i.e., PXs) at the lowest possible prices. The resulting average cost savings of about 25% are a major fringe benefit (untaxed) to military personnel. The competitive structure of the military resale market consists of a few large distributors that do not dominate the industry, and hundreds of smaller distributors. Military Resale Group's long-term strategy is to grow primarily by acquiring other small distributors, and by internal growth.

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