Electric Fuel Corp Cuts Costs to Focus on Sales
NEW YORK -- Electric Fuel Corporation (Nasdaq: EFCX), a leading developer zinc-air fuel cell technology, today commenced its 2002 corporate initiatives strategic plan that is focused on increasing sales. Highlighted activities for the initiative include Direct Response TV advertisements, retail promotions and OEM product incentives.
Chairman of the Board Robert S. Ehrlich of Electric Fuel Corporation commented, "With a portion of the funds freed up from other budget items, we will increase our marketing and advertising budget to allow for higher profiled activities such as television advertisements and general retail promotions. We anticipate these activities will improve consumer awareness and product branding."
To complement the initiative and fund the advertising budget, the Company created a cost-cutting program, which includes a voluntary cash compensation reduction of 35% by the Company's most senior executives. Other budget items include G&A and Operations. These funds will be part of a major redirecting of internal capital that will result in a substantial increase in marketing and sales budgets and a projected 25% reduction in corporate burn rate.
"As we prepare for an aggressive year in a tepid economic environment," said President and CEO Yehuda Harats of Electric Fuel, "It seems prudent of us to streamline operations through general administrative cost cuts; reductions in third-party consultant fees and salary cutbacks. We remain committed to increasing shareholder value as we enhance marketing through the launch of a direct response TV campaign and prepare to follow a very conservative path in the coming year."
About Electric Fuel Corporation
With corporate and sales offices in New York and London, England and manufacturing and R&D facilities in Israel and Alabama, Electric Fuel Corporation is a world leader in primary and refuelable Zinc-Air fuel cell technology with pioneering advancements in consumer electronics, electric vehicles, and defense and safety products. The Company's Instant Power(TM) batteries and chargers are based on the Company's patented, cutting-edge Zinc Air fuel cell technology, and are on sale at retail outlets throughout the United States, Canada, Europe and Israel. For more information, please visit us on our web site at http://www.electric-fuel.com.
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