Airtrax Closes $3.2 Million Financing

March 5, 2007 •Airtrax, Inc., Blackwood, N.J., a developer of patented, omni-directional technology with military and commercial applications, announced Friday that the company has completed a private placement offering for aggregate gross proceeds of $3.2 million.

"With investment funds being received, I believe that the implementation of our new business plan will be greatly facilitated," said Airtrax's Chief Executive Officer, Robert Watson. “We believe that our prior development efforts [http://www.liftandaccess.com/index.php?id=1427] are continuing to produce results, as seen in our progress in delivering a demonstration prototype of the omni-directional equipment handler vehicle in April to the Israeli Air Force. We still anticipate the availability of our new product, the KING COBRA™ aerial work platform, for sales and distribution in the second half of 2007,” added Watson.

Under the terms of the financing, the company has issued investors $3.7 million in secured debentures, which are convertible into shares of common stock, at a price of $0.45 per share. The debentures mature on Feb. 20, 2009, and the company may redeem the debentures, at its discretion, at a price equal to 150 percent of the principal amount balance, subject to certain equity conditions being met. Investors were also issued warrants to purchase shares of common stock at exercise prices ranging from $.54 to $1.25 per share.

The SIDEWINDER™ Lift Truck, MP2 Equipment Handlers and the Airtrax COBRA™ aerial work platforms are the first omni-directional vehicles using omni-directional technology and the patented Airtrax wheel to be commercially produced. The nearly maintenance-free drive system design reduces maintenance costs, delivering cost efficiencies to companies both large and small.