BriteSmile Terminates the Sale Agreement for Its Center Business
May 01 2006 - 1:34PM
PR Newswire (US)
Julian Feneley, BriteSmile President to Leave the Company June 1
WALNUT CREEK, Calif., May 1 /PRNewswire-FirstCall/ -- BriteSmile,
Inc. (NASDAQ:BSML) today announced that it has terminated the
agreement with Dental Spas LLC, of Fairfield, Iowa, pursuant to
which BriteSmile had agreed to sell and Dental Spas had agreed to
acquire BriteSmile's Spa Centers Business. Through the Spa Centers
Business, teeth whitening procedures are performed using the
Company's whitening technology in 17 Centers throughout the United
States. The agreed closing conditions were not satisfied and
pursuant to its terms, the Purchase Agreement was terminated by
BriteSmile. The Board of Directors of BriteSmile determined that it
was in the best interests of the Company's shareholders to
terminate the Purchase Agreement with Dental Spas. On January 13,
2006, BriteSmile entered into a Purchase Agreement with Dental
Spas, pursuant to which Dental Spas agreed to purchase the
Company's Spa Centers Business. In addition, the sale would have
included the Company's business of selling teeth whitening
products, including its BriteSmile-to-Go whitening pen, toothpaste
and mouthwash products, directly and through third party retail
channels. The purchase price was approximately $20,000,000 plus the
assumption of certain continuing obligations of the Company
relating to its Spa Centers Business. The Company also announced
that its President, Dr. Julian Feneley, would leave the Company on
June 1 to pursue other opportunities. Dr. Feneley joined the
Company in February, 2004 as its President. Dr. Feneley will
continue as a director of the Company. Anthony M. Pilaro, the
Chairman of the Board of Directors of the Company said, "We are
extremely grateful for the extraordinary effort Julian has given to
managing the Company during an intense and important time in the
Company's history. Julian worked closely with the Company's
professional advisors and executive staff in preparing the Company
for sale, negotiating the sales to Discus Dental and Dental Spas
and then closing the sale of the Associated Center Business to
Discus Dental. He did it all with unfailing commitment, focus and
professionalism. Julian is a very talented executive and we wish
him great success." The Company also announced that John Reed, a
director of the Company and the Company's CEO from June, 1999, to
April, 2004, has been appointed CEO of the Company effective
immediately. Mr. Pilaro continued, "We are also extremely fortunate
that John Reed would agree to return to the position of CEO of the
Company. He knows the challenges and opportunities of the Business
better than anyone." BriteSmile has developed and markets the most
advanced teeth whitening technology available, as well as manages
state-of-the-art BriteSmile Professional Teeth Whitening Centers.
BriteSmile Spa Centers are currently operating in Beverly Hills,
Irvine, Palo Alto, Walnut Creek, San Francisco and La Jolla, CA;
Houston, TX; Denver, CO; Boston, MA; McLean, VA; Atlanta, GA; New
York, NY; Chicago and Schaumburg, IL; and, Phoenix, AZ. For more
information about BriteSmile's procedures, call 1-800-BRITESMILE or
visit the Company's Website at http://www.britesmile.com/. This
release, other than historical information, consists of forward-
looking statements that involve risks and uncertainties. Readers
are referred to the documents filed by BriteSmile with the
Securities and Exchange Commission, specifically the Company's most
recent reports on Forms 10-K and 10-Q, that identify important risk
factors which could cause actual results to differ from those
contained in the forward-looking statements. BriteSmile and its
affiliates disclaim any intent or obligation to update these
forward- looking statements. DATASOURCE: BriteSmile, Inc. CONTACT:
investors, Kenneth A. Czaja, CFO, +1-925-941-6260, or media, Philip
Powell, +1-925-279-2863, both of BriteSmile, Inc. Web site:
http://www.britesmile.com/
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