EX-99.1
2
electro140566_ex99-1.htm
PRESS RELEASE DATED FEBRUARY 18, 2014
Exhibit 99.1
Electro-Sensors, Inc.
Acquires Wireless Hazard Monitoring
Product Line From Harvest Engineering Inc.
Minnetonka, MN, February 18, 2014 - Electro-Sensors,
Inc. (Nasdaq: ELSE) announced today it has acquired the advanced wireless hazard monitoring product line from Harvest Engineering
Inc. ("Harvest"). Electro-Sensors will
market and sell the new hazard monitoring
products under its new
HazardPRO
TM
product line and manufacture and service them
at its
Minnetonka,
Minnesota facility.
"The creation of the
HazardPRO
TM
product line will enable us to deliver best-in-class hazard monitoring systems built upon a field-proven wireless platform,"
said David Klenk, President of Electro-Sensors. "This acquisition complements our existing hazard monitoring sensors and
systems and expands our product line to include the most advanced hazard monitoring systems with a lower installed cost than traditional
wire-based solutions. The combination of leading hazard monitoring technology, field-proven reliability, true remote access capabilities,
and the lowest overall installed cost make this a market-leading product offering".
"We're excited that Electro-Sensors will
be deploying this technology to markets where hazard monitoring is of critical importance", said Bruce Meyer, President of
Harvest Engineering. "With more than 45 years of experience serving these markets, Electro-Sensors has established distribution
channels, technical competency, and customer support capabilities that are essential to effectively distribute this technology
worldwide. Additionally, this transaction will enable Harvest to focus on developing its core business of designing new, highly-engineered
products for the grain and feed market".
The
HazardPRO
TM
wireless hazard monitoring
product line
contains a variety of configurations ideally suited for a wide range of applications,
from single-point monitoring to large, highly-complex, multi-leg installations. In addition, it has been successfully installed
and monitoring industrial processing facilities with hazardous environments for more than five years. During this time period,
the products have proven to be easy-to-use, extremely reliable, simple-to-operate, and cost-effective.
Under the agreement, Harvest received $400,000 at
closing, and will receive an additional $400,000 on each of the first and second anniversary of closing. Additionally, Harvest
may earn up to an additional $550,000, contingent upon the achievement of certain performance measures. The Company believes the
acquisition will be accretive to quarterly GAAP earnings per share beginning in the second quarter of 2015.
About Electro-Sensors, Inc.
Electro-Sensors, Inc. designs and manufactures the most
rugged and reliable machine monitoring sensors and hazard monitoring systems for industrial applications. Since 1968 we have been
utilizing leading-edge technology to continuously improve our products making them easy-to-use and designed to last for many years
of accurate service. Our products improve processes by safeguarding systems, reducing downtime, and preventing waste. Most of our
standard products ship within two days and have an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2008
quality certified company committed to providing excellent customer service and technical support.
Cautionary Statement Regarding Forward Looking Statements
This press release includes statements about possible
or anticipated future financial performance, business activities or plans. These forward-looking statements may include the words
"believes", "expects", "anticipates", "intends" or similar expressions. For these
forward-looking statements, the Company claims the protection of the safe harbor for forward−looking statements contained
in federal securities laws. These forward-looking statements are subject to a number of factors, risks and uncertainties, including
those disclosed in our periodic filings with the SEC, that could cause actual performance, activities or plans after the date the
statements are made to differ significantly from those indicated in the forward-looking statements.
In addition, the forward-looking statements in this
press release depend upon our ability to successfully integrate and manufacture the advanced wireless hazard monitoring product
line, sell it under the
HazardPRO
TM
trade name, and continue to
develop new products using the advanced wireless hazard technology.
HazardPRO
TM
is a trademark of Electro-Sensors, Inc.

EX - 99 . 1 2 electro140566 _ ex99 - 1 . htm PRESS RELEASE DATED FEBRUARY 18 , 2014 Exhibit 99 . 1 Electro - Sensors , Inc . Acquires Wireless Hazard Monitoring Product Line From Harvest Engineering Inc . Minnetonka , MN , February 18 , 2014 - Electro - Sensors , Inc . ( Nasdaq : ELSE ) announced today it has acquired the advanced wireless hazard monitoring product line from Harvest Engineering Inc . ( " Harvest " ) . Electro - Sensors will market and sell the new hazard monitoring products under its new HazardPRO TM product line and manufacture and service them at its Minnetonka , Minnesota facility . " The creation of the HazardPRO TM product line will enable us to deliver best - in - class hazard monitoring systems built upon a field - proven wireless platform , " said David Klenk , President of Electro - Sensors . " This acquisition complements our existing hazard monitoring sensors and systems and expands our product line to include the most advanced hazard monitoring systems with a lower installed cost than traditional wire - based solutions . The combination of leading hazard monitoring technology , field - proven reliability , true remote access capabilities , and the lowest overall installed cost make this a market - leading product offering " . " We ' re excited that Electro - Sensors will be deploying this technology to markets where hazard monitoring is of critical importance " , said Bruce Meyer , President of Harvest Engineering . " With more than 45 years of experience serving these markets , Electro - Sensors has established distribution channels , technical competency , and customer support capabilities that are essential to effectively distribute this technology worldwide . Additionally , this transaction will enable Harvest to focus on developing its core business of designing new , highly - engineered products for the grain and feed market " . The HazardPRO TM wireless hazard monitoring product line contains a variety of configurations ideally suited for a wide range of applications , from single - point monitoring to large , highly - complex , multi - leg installations . In addition , it has been successfully installed and monitoring industrial processing facilities with hazardous environments for more than five years . During this time period , the products have proven to be easy - to - use , extremely reliable , simple - to - operate , and cost - effective . Under the agreement , Harvest received $ 400,000 at closing , and will receive an additional $ 400,000 on each of the first and second anniversary of closing . Additionally , Harvest may earn up to an additional $ 550,000 , contingent upon the achievement of certain performance measures . The Company believes the acquisition will be accretive to quarterly GAAP earnings per share beginning in the second quarter of 2015 . About Electro - Sensors , Inc . Electro - Sensors , Inc . designs and manufactures the most rugged and reliable machine monitoring sensors and hazard monitoring systems for industrial applications . Since 1968 we have been utilizing leading - edge technology to continuously improve our products making them easy - to - use and designed to last for many years of accurate service . Our products improve processes by safeguarding systems , reducing downtime , and preventing waste . Most of our standard products ship within two days and have an industry - leading 5 - year warranty . Electro - Sensors is proud to be an ISO9001 : 2008 quality certified company committed to providing excellent customer service and technical support . Cautionary Statement Regarding Forward Looking Statements This press release includes statements about possible or anticipated future financial performance , business activities or plans . These forward - looking statements may include the words " believes " , " expects " , " anticipates " , " intends " or similar expressions . For these forward - looking statements , the Company claims the protection of the safe harbor for forward − looking statements contained in federal securities laws . These forward - looking statements are subject to a number of factors , risks and uncertainties , including those disclosed in our periodic filings with the SEC , that could cause actual performance , activities or plans after the date the statements are made to differ significantly from those indicated in the forward - looking statements . In addition , the forward - looking statements in this press release depend upon our ability to successfully integrate and manufacture the advanced wireless hazard monitoring product line , sell it under the HazardPRO TM trade name , and continue to develop new products using the advanced wireless hazard technology . HazardPRO TM is a trademark of Electro - Sensors , Inc .
O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O