ErgoBilt has issued a total of five (5) press releases since Asensio & Company, Inc. published its strong sell recommendation on its shares. Four (4) of these press releases contained comments about Asensio’s reports. We found no substance in the press releases. None of ErgoBilt’s releases contradicted or gave any possible explanation for the Company’s many serious failures to disclose material negative information about its business.
On September 30, 1997 Asensio & Company issued a report on ErgoBilt’s pending patent litigation with Dr. Jerome J. Congleton and Neutral Posture Ergonomics, Inc. ErgoBilt then elected to hold a conference call and issue yet another press release concerning Asensio’s most recent ErgoBilt report. The ErgoBilt release merely acts to confirm the previously undisclosed risks and events contained in our report. We believe the ErgoBilt release demonstrates management’s arrogance and its complete disregard for the legitimate concerns of the investment community.
We believe Asensio & Company’s ErgoBilt research reports clearly illustrate that ErgoBilt’s management has made false public statements and has purposefully withheld material negative information about its ErgoFon’iks product and “alleged” CTSS acquisition. We believe ErgoBilt management’s aggressive promotional activity is fraudulent and that ErgoBilt’s stock price is grossly overvalued. Based on these concerns and our independent valuations of both ErgoBilt’s chair and shorthand machine businesses, Asensio & Company has issued a Strong Sell recommendation.
ErgoBilt, Inc. (OTC Symbol: ERGB) (Price: $10.50)
Short selling involves a risk not associated with the purchase of stock including, but not only limited to, unlimited loss and stock borrowing risks. Additional information is available upon request.