BOSTON--(BUSINESS WIRE)--Nov. 25, 2003--Ergo Science Corporation (OTCBB:ERGO - News) today announced the sale of its interests in ERGOSET®, including intellectual property rights and other human drug related assets to PLIVA d.d. for $5.5 million. An additional $500,000 of consideration may be paid to Ergo depending on certain milestones. PLIVA d.d., based in Croatia, is the leading pharmaceutical company in Central and Eastern Europe. Since its 1996 listing on the London and Zagreb Stock Exchanges, PLIVA has made notable advancements in internationalizing its business and implementing a global and innovative strategy. PLIVA is a rather unique company with investments in both research and development. With over 400 patents in its possession, PLIVA has proven the high caliber of its R&D capabilities, most notably through the discovery of its blockbuster - azithromycin. This macrolide antibiotic, globally known as Zithromax (under license to Pfizer) or Sumamed (PLIVA's brand), is the top selling antibiotic in its class.
David R. Burt, President and Chief Executive Officer of Ergo Science commented, "We are pleased that PLIVA has decided to carry on the development of ERGOSET® for the treatment of type 2 diabetes."
The discussion above contains forward-looking statements. Forward-looking statements reflect Ergo Science's current views with respect to future events. Actual results may vary materially and adversely from those anticipated, believed, assumed, estimated or otherwise indicated. Important factors that could cause actual results to differ materially include, without limitation (1) Ergo Science may not be able to identify nor complete an acquisition of a suitable established business on favorable terms and, if acquired, that business may not generate sufficient income to realize the benefits of Ergo Science's net operating loss carryforwards; (2) Ergo Science's common stock is subject to rules relating to low-priced or penny stock, which may make it more difficult for stockholders to buy or sell shares and for Ergo Science to enter into future equity financings or to effect an acquisition or merger with other businesses; (3) the transfer restrictions implemented in the merger may delay or prevent takeover bids by third parties and may delay or frustrate any attempt by stockholders to replace or remove the current management; (4) if the transfer restrictions are not effective in preventing an ownership change from occurring, the ability to use the tax net operating loss carryforwards will be severely limited; (5) Ergo Science believes that it qualifies for an exclusion from the definition of "investment company"' under the Investment Company Act of 1940; however, if the Securities and Exchange Commission takes a contrary position and prevails, the Company would be subject to significant restrictions on its business and on its ability to implement its acquisition strategy; and (6) because ownership of our common stock is concentrated, certain stockholders can exert significant influence over stockholders' decisions. Information about important factors that could cause actual results to differ materially are set forth in reports and other filings of Ergo Science with the Securities and Exchange Commission, including, without limitation, the 2002 Annual Report on Form 10-K and Form 10-Q for the period ended September 30, 2003, generally under the sections entitled ``Risk Factors.'' Ergo Science does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of Ergo Science.
Ergo Science Corporation Lisa V. DeScenza, 978-689-0333 firstname.lastname@example.org
Source: Ergo Science Corporation