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GelTech Solutions Signs 10-Year FireIce Exclusive Distribution Agreement for The People's Republic of China
Minimum Purchases of $87.9 million over Term, including
$6.0 million in year 1, required to keep exclusivity
July 24, 2012- Jupiter, FL
GelTech Solutions, Inc. (OTCBB: GLTC), creators of FireIce, a revolutionary water enhancing fire suppressant that has the potential to change current firefighting techniques globally announced today, the signing of a 10-Year exclusive distribution agreement with XingFang Group Ltd. to sell FireIce in the People’s Republic of China.
Pursuant to the agreement, XinFang Group Ltd. must meet annual minimum purchase levels of $6 million in year 1, $7.2 million in year 2 with annual 5% increases thereafter, for a total of $87.9 million over the 10 year term of the agreement in order to maintain its exclusive distributor status and preferred pricing. Monthly minimums in Year 1 of the agreement range from $350,000 to $590,000.
“Entering into this agreement is a major step toward GelTech becoming self-reliant. The resumption of shipments to China, expected in September, will result in substantial revenue to the Company, enabling us to continue executing our plan to expand operations,” said Joseph Ingarra, president of GelTech Solutions. “We foresee this deal being a springboard for the Asian marketplace. We have already begun speaking with other groups interested in distribution throughout the Pacific Rim and Asia.”
About GelTech Solutions, Inc.
GelTech Solutions creates innovative, Earth-friendly, cost-effective products that help industry, agriculture, and the general public achieve environmental and safety goals such as water conservation and protecting lives, homes and property from fires. All the products currently marketed by GelTech Solutions, Inc. were created for the Company by inventor and chief technology officer, Peter Cordani.
FireIce is a patent pending fire suppressant used for direct attack of fires as well as a medium term retardant for structure protection. FireIce can be used in all types of apparatus: fire extinguishers, pumper trucks, aerial units for wildfires and all equipment used in municipal applications. FireIce is a water enhancing powder that can be utilized both as a fire suppressant in urban firefighting, including underground utility fires, and in wildland firefighting and as a medium-term fire retardant to protect wildlands, structures and firefighters.
GelTech also markets Soil2O which is both a non-toxic soil conditioner and a dust abatement product. Soil2O "Dust Control" products and solutions stop all types of particulate matter from entering the air and water, solving even the most stubborn dust control problems. Soil2O Granular and Topical blends reduce water consumption up to 50% and promote healthy root development in plants and lawns, generating faster seed germination by keeping nutrients and moisture at the root level longer.
For more information on GelTech, please visit:www.geltechsolutions.com
CSIR Group, LLC
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements including the resumption of shipments to China, the anticipated revenue, and assumptions regarding the effect of the China agreement on the Asian market. Forward-looking statements can also be identified by words such as “targets,” “expects,” “believes,” “anticipates,” “intends,” “may,” “will,” “plan,” “continue,” “forecast,” “remains,” “would,” “should,” and similar expressions. Forward-looking statements are based on current expectations, are not guarantees of future performance and involve assumptions, risks, and uncertainties. Actual performance and results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include the effectiveness of FireIce, the Chinese distributor’s ability to sell FireIce to end users, and the acceptance of FireIce in the Asian market. Further information on our risk factors is contained in our filings with the SEC, including the Form S-1/A filed on March 13, 2012. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.