AKR.L Regulatory News (AKR)

3 Jan 2006 07:00

Embargoed: 0700hrs 3 January 2006 Akers Biosciences, Inc ("Akers Biosciences" or the "Company") Increased Production Facilities Akers Biosciences, the United States based developer, manufacturer, andsupplier of rapid, point of care screening and testing products, is delightedto announce the planned expansion of its manufacturing and productionfacilities from 5,000 sq. feet to 43,000 sq. feet.The Company has today accepted an offer letter with the Puerto Rico IndustrialDevelopment Company ("PRIDCO") to locate 43,429.76 sq. feet of manufacturingand production facilities in Luquillo, Puerto Rico where it will transfer theentirety of its production, currently based in New Jersey, USA. The move willenable Akers Biosciences to meet the increased demand for its products,following the signing of a number of major distribution agreements, and neworders. In as much as the challenge presented by the current order level wouldeventually outstrip the Company's current manufacturing resources, this plannedexpansion is extremely timely.The Company will benefit extensively from, not only the capacity to generatemore product, but the ability to execute this at the reduced overhead offeredby the new location. Also, Akers Biosciences will undertake additional aspectsof the production process in-house, eliminating the costly process ofsub-contracting certain stages. It is envisaged that an initial staff of 35people will commence operations in Puerto Rico, extending upwards over futureyears. The new facility should become operational during 2006.The Company is very pleased with the significant incentive proposal it receivedfrom PRIDCO providing assistance with workforce, facility, and tax costs. TheCompany does not expect any significant changes to its cash flow as a result ofthe start-up of this new facility.The Company will retain its New Jersey facility as a prototype manufacturingstation.CEO, Dr. Ray Akers, commented,"This expansion is directly in response to both current and anticipated futurelevels of demand for Akers Biosciences' products and, in particular, the PIFA‚®Heparin/ Platelet Factor-4 Rapid Assay which is now being used in over 200hospitals in the United States alone, and the Tri-Cholesterol Check Assay whichwill be in US retail stores in the first quarter of 2006.This move marks the transition towards high volume manufacturing - an excitingmilestone in our development."Enquiries:Dr. Raymond Akers Chief Executive Officer, 020 7917 9476 Akers Biosciences, Inc. Paul Freedman Chief Financial Officer, 001 856 848 8698 Akers Biosciences, Inc. Bill Roberts CTC, Inc. 001 937 434 2700 Ben Simons Hansard Communications 020 7245 1100 Akers Biosciences, Inc. develops, manufactures, and supplies rapid, point ofcare screening and testing products designed to bring healthcare informationboth rapidly and directly to the patient or healthcare provider. The Companyhas advanced the science of diagnostics while responding to major shifts inhealthcare through the development of several proprietary platformtechnologies. The company's state-of-the-art rapid diagnostic assays can beperformed virtually anywhere in minutes when time is of the essence. Akers hasaligned with major healthcare companies and high volume medical products distributors to maximize product offerings, and to be a major worldwidecompetitor in diagnostics. Additional information on the Company and itsproducts can be found at www.akersbiosciences.com.ENDAKERS BIOSCIENCES INC