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Edward H. Myles, Senior Vice President of Finance and CFO, said: "Althoughthe seven installations of Pressure Cycling Technology ("PCT") SamplePreparation Systems ("PCT Systems") in the second quarter of 2008 weresignificantly higher than the four PCT Systems installed in the same period in2007, we had hoped to have installed more. That being said, we are veryencouraged by the fact that we have already recorded nine installations in Q3through August 14th. Furthermore, we expect to install at least five more PCTSystems before the end of the third quarter. Based on the number of highpotential ("Type A") leads in our sales pipeline, we now expect to install 40or more PCT Sample Preparation Systems during 2008, as compared to the 20 thatwe installed during 2007."
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Mr. Myles continued: "In addition to continuing the expansion of ourinstalled base of PCT Systems, we have also implemented a number of costreduction initiatives, including the delay of certain research and developmentprojects, reduction in travel and meeting attendance for all personnel,continued reduction in investor relations activities, decreases in the basesalary of most of our employees and all of our executive officers, decrease inannual cash compensation for all outside Board members, and a reduction in ourworkforce that included the re-alignment of our domestic sales force fromseven full time sales directors to three. We ended the second quarter withapproximately $2.8 million in cash and cash equivalents. We believe that thisamount of cash, together with the cost reduction measures, will allow us toreach a manageable balance between the need to conserve our cash resources andthe need to support our short-term commercialization plans. We have alsoengaged Emerging Growth Equities of King of Prussia, PA to help us raiseadditional capital to fund our further development and commercialization ofPCT."
During the past four months, the Company has reported successes andmeasurable progress in a number of important areas. These include, but arenot limited to:
-- The award of a $850,000 NIH SBIR Phase II Grant for the development ofa new PCT-dependent system for improved biomarker discovery, diagnostics, anddrug discovery
-- Presentations by independent researchers at key scientific conferencesciting the use of PCT for improving the detection, speed, and quality ofprotein analysis
-- The market release by the Company of several new and importantPCT-based products and applications, including the use of PCT to significantlyenhance (hours to minutes) the
