American TonerServ Moves to Increase Its Own Compatible Cartridge Manufacturing by Expanding Into New Florida Facility

SANTA ROSA, Calif., Nov. 2, 2010 /PRNewswire/ -- American TonerServ Corp. (OTC Bulletin Board: ASVP) (ATS), (www.AmericanTonerServ.com), a leader in the highly fragmented $6.0 billion printer supplies and services industry, reports it has expanded to a new facility in its Tonertype division in Tampa, Florida.

The move expands Tonertype's square footage from 13,500 to nearly 30,000 and is set up to manufacture up to 15,000 compatible toner cartridges per month. Tonertype had been manufacturing a small amount of cartridges specifically for the local markets in Florida.  The decision to expand production centered on a change in the economic environment in the compatible cartridge market and the continued revenue growth of ATS.  The Company recently announced a 23 percent increase in revenues for the first six months of 2010 to $16.9 million.

Chuck Mache, CEO of American TonerServ, commented:  "When we acquired Tonertype in 2007, the economics in the industry favored outsourcing to remanufacturers versus building cartridges in-house. With the prices of cores rising so dramatically in 2010, causing wholesale cartridge prices to rise and putting margin pressures on the company, we've opted to expand our expertise of manufacturing compatible toner cartridges."

"Our quality from Tonertype has always rivaled that of the OEM's and compatible manufacturers, and while we will continue to make significant additional purchases from our selected strategic vendors, our expanded facility and increased manufacturing is designed to increase our margins on certain select sku's.  This is all made possible by our continued revenue growth," Mr. Mache said.

About American TonerServ:

American TonerServ (OTCBB: ASVP) is a leading marketer of compatible and original-equipment-manufactured toner cartridges.  The Company is strategically building a nationwide organization to efficiently serve the printing needs of small-and medium-sized businesses by executing on key organic growth initiatives designed to build sales distribution across the country.  In the more than $6.0 billion recycled printer cartridge and printer services industry, the company offers top quality, environmentally friendly products and local service teams to its customers.  Please visit  www.AmericanTonerServ.com for more information.

Safe Harbor:  Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

SOURCE American TonerServ Corp.

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