Joel Slutzky, Odetics CEO, Announces Company Succession Plan

Business Wire, Nov 5, 2001

Business Editors & High-Tech Writers

ANAHEIM, Calif.--(BUSINESS WIRE)--Nov. 5, 2001

Joel Slutzky, chairman and chief executive officer of Odetics Inc. (Nasdaq:ODETA) (Nasdaq:ODETB) today announced a phased succession plan for the company.

As part of the plan, Slutzky will continue to serve as chairman of the board, but will turn over the chief executive officer duties to Greg Miner. Miner is currently the company's chief operating officer and chief financial officer. The change could occur as early as the end of the third quarter.

Slutzky stated: "The genesis of the plan is about a year old. Last December we recognized that our access to the capital markets had closed for the foreseeable future. At that time we were aggressively investing in our subsidiary companies -- as reflected in our quarterly operating expense burn rate of $15 million, and significant quarterly losses."

In December 2000, Odetics announced an ambitious turnaround plan to improve liquidity and be EBITDA neutral by the end of the December 2001. In July, Slutzky informed the board that when the turn around was evident, he would like to retire as CEO but remain as chairman.

Slutzky noted: "Through a series of financing and restructuring actions, we have reduced our total net debt load from $20 million at the beginning of the turnaround to approximately $11 million at September 30, 2001. The next step in the turnaround plan is to achieve the EBITDA neutral goal by the end of December."

Slutzky also stated: "Greg Miner has been with Odetics since early 1994, first serving as chief financial officer, and since 1997 also serving as chief operating officer. In addition, Greg serves on the board of Odetics, and its subsidiary companies, and serves as chairman of Zyfer.

"He played a key role in driving the cost reductions and realignment of our businesses to widen our overall gross profit performance, reduce our operating expenses, and thereby help progress the company back to profitability.

"He has the breadth of knowledge of the Odetics businesses and the skills required to lead the company in its growth strategies, including the ultimate realization of value of the Odetics businesses in the equity capital markets."

Slutzky held the position of chief executive officer since 1969 when he co-founded Odetics. He will also continue to serve as chairman of the company's MAXxess Systems Inc., Iteris Inc., and Broadcast Inc. subsidiaries.

In addition, Slutzky is the chairman of Project Tomorrow and a board member of the Future Scientists & Engineers of America, KOCE, Orange County Business Council, and the Discovery Science Center.

Odetics, through its operating subsidiaries, is engaged in the manufacture and sale of information and security management products and services addressing the needs of the traffic systems industry, the electronic access control market, the television broadcast market, and the network synchronization and security market.

Odetics has headquarters in Anaheim and may be contacted at 714/774-5000. Odetics and the Web sites of each of its subsidiaries may be contacted at www.odetics.com.

Important Notice

This news release contains statements that may be deemed to be forward-looking. These forward-looking statements may include statements about revenue growth, profit margins, the effect of cost reduction measures, and other statements relating to the operating results of Odetics or its subsidiaries. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors such as: short product lives, technological shifts, current technical issues that cannot be resolved on a timely basis, component availability, competition (including new and directly competitive products from others), pricing pressures, incorrect assumptions regarding market demand, the significant uncertainty of market acceptance of new products by both distributors and end-user customers, unanticipated capital requirements, retention of key personnel, general economic conditions, the inability of the company to execute its strategy including the completion of both private and public equity financings of its subsidiaries, and other factors identified in the Odetics' Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

Investors are strongly encouraged to review the risk factors set forth in the Odetics most recent SEC filings.