Nanophase Technologies Announces Auditing Firm Change Company Registers Equity Compensation Plan
ROMEOVILLE, Ill., Dec 4, 2001 /PRNewswire via COMTEX/ -- Nanophase Technologies Corporation (Nasdaq: NANX), a leader in nanomaterials and nanoengineered products, today announced that it has changed auditing firms from Ernst & Young, LLP to McGladrey & Pullen, LLP, part of RSMi International. Nanophase made the change because Ernst & Young views its current fee levels for Nanophase as insufficient to allow Ernst & Young to continue providing its customarily high quality service to the company without a significant increase in pricing.
"While Ernst & Young has provided years of excellent service to Nanophase, its increased fee structure relative to the company's size was no longer consistent with our cost structure or our auditing and accounting requirements," stated Jess Jankowski, Nanophase's controller and acting CFO. "We believe that this change will improve our costs for auditing and related services, while providing the company with an equally skilled audit firm with a focus and fee structure more appropriate to Nanophase's current size and growth stage. We expect that this transition of auditing firms will be seamless. We plan on McGladrey & Pullen performing the company's fourth quarter and year-end audit.
"This action is consistent with Nanophase's ongoing program to reduce or minimize discretionary costs. Coupled with previous efforts this year, including a permanent reduction in our manufacturing force achieved through productivity gains this past summer (May through August), careful expense management, and reductions in those costs we can affect without limiting the business, we have achieved annualized cost savings in excess of $500,000 during 2001. These savings are, of course, in addition to the excellent results we have achieved in reducing manufacturing costs in the past eighteen months."
Company Registers Equity Compensation Plan
As approved by the company's shareholders at the 2001 stockholder meeting, Nanophase registered 900,000 shares of common stock under the Nanophase Technologies Corporation Equity Compensation Plan, which will be used for future employee compensation beginning in 2002.
About RSM International:
RSM International (RSMi) is the 8th largest full service accounting and consulting organization in the world. RSMi has been in continuous existence since 1964, adopting its current name worldwide on January 1, 1993. RSM International is represented by 80 member firms and 4 correspondent firms in 74 countries. The core member firms of RSMi are McGladrey & Pullen (USA), Salustro Reydel (France), Robson Rhodes (UK), Haarmann Hemmelrath (Germany) and Bird Cameron (Australia).
About Nanophase Technologies:
Nanophase Technologies Corporation provides engineered solutions utilizing nanocrystalline materials for a variety of industrial product applications. Using proprietary technology to produce nanocrystalline materials, the company creates products with unique performance attributes. The company's global customer base includes Fortune 500 companies. Nanophase trades on the Nasdaq NMS under the symbol "NANX." Visit the company's web site at www.nanophase.com .
The words "expect", "anticipates", "plans", "forecasts" and similar expressions are intended to identify forward looking statements. Statements contained in this news release that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results for future periods to differ materially from those expressed in this news release. These important factors include, without limitation: a decision of the customer to cancel a purchase order or supply agreement; demand for, and acceptance of, the Company's nanocrystalline materials; changes in development and distribution relationships; the impact of competitive products and technologies; possible disruption in commercial activities occasioned by terrorist activity and armed conflict; and other risks indicated in the Company's filings with the Securities and Exchange Commission. Nanophase undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
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SOURCE Nanophase Technologies Corporation
CONTACT: Joseph Cross, President, CEO, +1-630-771-6705, Dan Bilicki, VP,
Sales & Mktg., +1-630-771-6728, or Nancy Baldwin, Investor Communications,
+1-630-771-6707, all of Nanophase Technologies Corporation, or General, Tad
Gage, +1-312-640-6745, Analysts, Lisa Fortuna, +1-312-640-6779, or Media, Tim
Grace, +1-312-274-2240, all of FRB Weber Shandwick
URL: http://www.nanophase.com
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