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TAPISTRON ENTERS INTO AN EXCLUSIVE LICENSING AGREEMENT WITH FUL-DYE

 TAPISTRON ENTERS INTO AN EXCLUSIVE LICENSING AGREEMENT WITH FUL-DYE
 CHATTANOOGA, Tenn., Aug. 21 /PRNewswire/ -- Tapistron International, Inc. (NASDAQ: TAPI TAPIW) announced that it has entered into a licensing agreement with Ful-dye, Inc., whereby Tapistron will have the exclusive rights to the technology of a dyeing process invented by Ful-dye.
 Tapistron had previously entered into an option agreement with Ful- dye in February 1992 that provided for Tapistron to purchase the technology for $1 million, payable in four equal annual installments together with a royalty of 1 percent of revenues up to a maximum of $4 million in royalties. Under the terms of the new licensing agreement, Tapistron paid $50,000 and agreed to pay royalties of 25 percent of the first $4 million in revenues derived from this process and 5 percent of the next $80 million in revenues for a maximum royalty of $5 million.
 Lanier M. Davenport, chairman and chief executive officer of Tapistron International, said: "We are very pleased with this licensing arrangement. We have completed our initial review of the Ful-dye process and are excited about this technology and its potential. Now we are prepared to enter the second phase, which is the development of a pilot facility to determine the best approach for the commercialization of this process. The licensing agreement allows us to continue with the development of this project while shepherding our cash resources."
 Tapistron International, Inc. is headquartered in the center of the country's carpet industry and has also developed the CYP loom, a highly sophisticated patented innovation in tufting technology. The CYP technology is a proprietary, totally computerized process that is capable of manufacturing highly versatile patterned, colored and textured carpets and textile products for residential and commercial applications.
 -0- 8/21/92
 /CONTACT: Lanier M. Davenport, chairman and CEO, or John C. Thomas Jr., chief financial officer of Tapistron International, 615-265-1920/
 (TAPI) CO: Tapistron International, Inc.; Ful-dye, Inc. ST: Tennessee IN: TEX SU: LIC


BN-DF -- AT001 -- 2000 08/21/92 08:31 EDT
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Publication:PR Newswire
Date:Aug 21, 1992
Words:333
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