Pressure
BioSciences, Inc. Receives $1,780,109 in Full Payment for the Sale of Source
Scientific LLC
West
Bridgewater, MA, May 31, 2007 Pressure BioSciences, Inc. (NASDAQ: PBIO) ("PBI")
today announced that it has received $1,780,109 from Mr. Richard W. Henson
and
Mr. Bruce A. Sargeant in full payment for the sale of Source Scientific, LLC
("SS LLC" ). Of this amount, $1,201,534 constituted repayment in full of the
aggregate principal amount and all accrued interest on promissory notes from
Mr.
Henson and Mr. Sargeant from their June 2, 2004 purchase of 70% of SS LLC from
PBI. The remaining $578,573 was for the purchase of PBI's 30% ownership interest
in SS LLC.
In
June
2004, PBI transferred certain assets and liabilities of its PBI Source
Scientific, Inc. subsidiary to a newly formed limited liability company, SS
LLC.
At the time of the transfer, PBI owned 100% of the ownership interests of SS
LLC. PBI subsequently sold 70% of its ownership interests in SS LLC to Mr.
Henson and Mr. Sargeant. Under the purchase agreement, Mr. Henson and Mr.
Sargeant executed promissory notes to PBI in the aggregate principal amount
of
$900,000 (the "Notes" ) payable at the end of three years and bearing 8%
interest. Pursuant to the purchase agreement, PBI entered into a call agreement
granting Mr. Henson and Mr. Sargeant the right to purchase PBI's remaining
30%
ownership interest in SS LLC until May 31, 2007, at an exercise price consisting
of an escalating premium (10-50%) over PBI's initial ownership value, provided
Mr. Henson and Mr. Sargeant had first paid off the Notes in their
entirety.
It
was
also announced today that SS LLC has entered into a new, working relationship
with BIT Analytical Instruments, Inc. ("BIT"), a well known and highly respected
contract manufacturer located in Frankfurt, Germany.
Mr.
Edward H. Myles, Senior Vice President and CFO of PBI, said: "The closing of
this transaction triggered the recognition of a gain which will be reported
in
the Other Operating, net line item in our Consolidated Statement of Operations.
For the past three years, we have accounted for our relationship with Source
Scientific LLC in accordance with the provisions of the Securities and Exchange
Commission Staff Accounting Bulletin Topic 5E "Accounting for Divestiture of
a
Subsidiary or Other Business Operation", whereby we recorded losses, but not
income, from Source Scientific's operations. The completion of this transaction
simplifies our financial statements and strengthens our balance sheet. To that
end, we expect to use these additional cash resources to support our recently
announced commercialization plan for PCT."
Mr.
Richard T. Schumacher, Founder, President, and CEO of PBI, commented: "During
the past three years, we have depended on the capabilities and experience of
Source Scientific to help in the development of our Pressure Cycling Technology
(PCT) product line. BIT Analytical Instruments brings a number of valuable
assets to this relationship, including European manufacturing capabilities,
an
impressive list of current customers worldwide, and financial stability. We
look
forward to continuing to work with the fine staff of Source Scientific, and
with
their new colleagues at BIT."
About
Pressure BioSciences, Inc.
Pressure
BioSciences, Inc. (PBI) is a publicly traded, early-stage company focused on
the
development of a novel, enabling technology called Pressure Cycling Technology
(PCT). PCT uses cycles of hydrostatic pressure between ambient and ultra-high
levels (up to 35,000 psi and greater) to control bio-molecular interactions.
PBI
currently holds 13 U.S. and 5 foreign patents covering multiple applications
of
PCT in the life sciences field, including such areas as genomic and proteomic
sample preparation, pathogen inactivation, the control of enzymes,
immunodiagnostics, and protein purification.
Forward-Looking
Statements
Statements
contained in this press release regarding the Company's intentions, hopes,
beliefs, expectations, or predictions of the future are "forward-looking''
statements within the meaning of the Private Securities Litigation Reform Act
of
1995. These statements are based upon the Company's current expectations,
forecasts, and assumptions that are subject to risks, uncertainties, and other
factors that could cause actual outcomes and results to differ materially from
those indicated by these forward-looking statements. These risks, uncertainties,
and other factors include, but are not limited to, the risks and uncertainties
discussed under the heading "Risk Factors" in the Company's Quarterly Report
on
Form 10-QSB for the quarter ended September 30, 2006, in the Company's Annual
Report on Form 10-KSB, as amended, for the year ended December 31, 2005, and
other reports filed by the Company from time to time with the SEC. The Company
undertakes no obligation to update any of the information included in this
release, except as otherwise required by law
Visit
us
at our website http://www.pressurebiosciences.com
CONTACT:
Pressure
BioSciences, Inc.
Investor
Contacts:
Richard
T. Schumacher, President & CEO
Edward
H.
Myles, Sr. Vice President of Finance & CFO
(508)
580-1818