Caprius, Inc. Announces Base Price Increase in Response to Changes in the Market and Soaring Material Costs
2008-05-14 23:43:58 -
www.caprius.com - Caprius, Inc. (OTCBB: CAPS) today announced the implementation of base price increases of approximately 20% on all SteriMed capital equipment products offered by its subsidiary, MCM Environmental Technologies, Inc. ("MCM"). The increase will be effective with all new orders received after May 15, 2008.
The Company's price increase was driven by two key factors: the rapid escalation in raw material costs associated with the manufacture of our SteriMed Systems, which the Company has absorbed to date, and the increased transportation costs related to the shipping and delivery of both components and completed SteriMed Systems. The medical waste market, which is dominated primarily by service providers who provide offsite hauling of medical waste, is undergoing rapid changes in its overall cost strategy due to the recent soaring cost of diesel and energy costs. Customers of these hauling providers are now facing monthly price increases from hauling firms that take the form of fuel surcharges. These market changes should help facilitate the acceptance of MCM's price increase.
Dwight Morgan, President & CEO, commented, "The Company, during the month of April, began to evaluate the market's acceptance of these proposed price increases. Given the prevalent reliance upon fuel surcharges by medical waste haulers to compensate for the high energy costs for their transportation network and their offsite treatment technologies, we are confident that we will be able to continue to provide our customers with substantial savings not withstanding this price increase and deliver improved value to our shareholders. Additionally, in overseas markets where we have started to set our prices in local currencies, we have been able to successfully offset the decline in the value of the U.S. dollar."
About Caprius
Caprius, Inc. is a manufacturer of proprietary equipment for the on-site disinfection of infectious medical waste through its subsidiary, M.C.M. Environmental Technologies, Inc. The Company's innovative SteriMed technology simultaneously shreds and disinfects solid and liquid regulated medical waste, reducing the volume by up to 90% and rendering it harmless for disposal as ordinary waste. The SteriMed units are economical, compact, efficient and convenient, as well as environmentally friendly. The MCM patented technology offers an alternative to hauling and incinerating medical waste. Industry analysts estimate the medical waste market to be approximately $3 billion in the U.S. and approximately $10 billion worldwide. More information on the Company and MCM can be found at www.caprius.com and www.mcmetech.com.
Safe Harbor Statement
This press release may contain forward-looking statements that involve risks and uncertainties. These statements refer to future plans, objectives, expectations and intentions. These statements may be identified by the use of words such as "anticipate," "believe," "intend," "plan," "expect" and other similar expressions. The Company's actual results could differ materially from those discussed in, or implied by, such forward-looking statements. You should also be aware of risks and uncertainties that, in the Company's view, could cause actual results to differ materially including changes related to regulatory and environmental approvals, manufacturing, operations, capital needs, technological advances by competitors and changes in health care reform, including reimbursement programs.
Certain information concerning economic trends and performance is based upon or derived from information provided by third-party consultants and other industry sources. While the Company believes that such information is accurate and that the sources from which it was obtained are reliable, it cannot guarantee the accuracy of such information, as it has not independently verified the assumptions on which projections of future trends and performance are based.
Caprius, Inc.
Beverly Tkaczenko, 201-342-0900, ext. 307
beverlyt@caprius.com
or
Barry Kaplan Associates
Andrew Kaplan, 732-747-0702
smallkap@aol.com
