Medis Technologies Ltd. (NASDAQ:MDTL) announced that ASE International, which is a Medis distributor focusing on drugstores, convenience stores, department stores and airport and duty free shops, has issued to Medis a purchase order totaling over fifty million dollars ($50 million) for delivery of 200,000 Power Packs a month for the first year of availability from Medis production and 400,000 Power Packs a month from the second year of production. Edward Koss, Chairman and CEO of ASE, stated that, “We issued this purchase order to insure that there will be sufficient Power Packs available to ASE for the over 60,000 doors that we service through our customers in the US and Canada. We have purchased a new 40,000 square foot warehouse in Florida for Southern distribution, which will be used in part to help distribute the Power Pack products and important customers have already indicated to us their desire to offer the Power Packs in their stores.”
Said Robert K. Lifton, Chairman and CEO of Medis Technologies, “We believe that mobile operators and OEMs as well as other distributors will also want to reserve availability of Power Pack units once they have demonstrated the Power Packs to their customers. This is particularly the case regarding those customers in the enterprise market. We are committed to building the first fully automated line, capable of producing 1.5 million Power Packs a month, as rapidly as we can. We believe that the financing we have just announced will enable us comfortably to complete that line and if that line becomes sold out we will start to plan for another fully automated line.”
The Company also announced that it is delivering on schedule its newest version of the fuel cell Power Pack product to its various distributors. It also has Power Pack units available to deliver to those mobile operators and Original Equipment Manufacturers (OEMs) with whom it has entered into Cooperation Agreements. Meetings are already scheduled starting next month with mobile operators and OEMs in the United States and Europe to deliver Power Packs to them so that they can demonstrate the Power Packs to their customers and provide feedback to Medis, including indications of orders, as contemplated by the Cooperation Agreements with those parties.
Medis Technologies’ primary focus is on direct liquid fuel cell technology. Its business strategy is to sell its products to end users through retail outlets and service providers. Medis has also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity. Additionally, Medis’ product pipeline includes other technologies, in varying stages of development.