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American TonerServ Announces Latest Acquisition

26 Dec, 2006

American TonerServ Announces Latest Acquisition

SANTA ROSA, CA - American TonerServ Corp. has entered into a customer list purchase agreement with Brody Enterprises ("Brody"), which has been doing business as "Sun Products," pursuant to which the Company acquired Brody's list of customers and related information. Sun Products has been engaged in the distribution of compatible laser toner cartridges and other office products, primarily to business customers since 1994. The list of contact and client information that Brody has compiled through its operations is a substantial sales and marketing asset which has generated more than $1.0 million in annual sales. ATS intends to utilize the customer list to continue to market printing supplies to this additional base of customers. There is no assurance that ATS will generate as much revenue from these customers as Brody has in the past.

According to Dan Brinker, CEO of ATS, "We have been focused on expanding this segment of our business, due largely to what we believe are opportunities for consolidation and achieving greater efficiency in the market. Acquiring additional customer lists has been one of our stated goals, and we are gratified to be able to announce this latest addition to our company." Arnold Brody, President of Brody Enterprises, stated, "I am extremely impressed with the ATS management team and business model. I am confident my customers will continue to receive excellent customer service."

As consideration for the purchase of the customer list, ATS issued a promissory note to Brody for $800,000. As previously reported in ATS' Form 10-QSB for the quarter ended September 30, 2006, on July 5, 2006, the Company purchased a customer list from Computech Print Solutions, Inc. ("Computech"). On August 26, 2006, the Company purchased customer lists and related information from Laser Cartridge Recharge Systems, Inc. These companies were distributors of compatible toner cartridges, primarily to business customers. The Company is using the customer lists to solicit sales of compatible toner cartridges to increase the Company's sales of such products.

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