American Access Technologies (www.aatk.com) recently announced that it has signed a letter of intent with Chatsworth Products Inc. (CPI--www.chatsworth.com). The letter outlines the basis for an agreement to cooperate on the development, manufacturing, and marketing of products. As part of the proposed transaction, CPI may acquire up to 9.9% of American Access outstanding stock at an agreed upon price. CPI has agreed to purchase $250,000 worth of restricted stock at $1.16 per share, through a private placement effective at the signing of the definitive agreement.

Under the terms of the letter of intent, American Access and CPI intend to co-market and co-manufacture products and incorporate the brand names and patents of both companies.

"The agreement enables each company to offer a more robust suite of product solutions while utilizing CPI's existing sales channels," says Joseph Cabral, president and chairman of CPI.

"With this agreement ... we will greatly benefit our existing OEM partners and customers by adding the services of 80 new field sales people," explains Wil Boyd, vice president of American Access. "The combined manufacturing and marketing expertise of both companies will enhance the service, quality, and timeliness of our products that our existing customers have enjoyed in the past."

Both companies anticipate the transaction to close no later than April 30, 2003.