Phoenix Laser Systems

Files statement with the Securities and Exchange Commission related to its plan to reorganize the company. Under the plan, Phoenix' two core businesses will be separated into two new companies: Advanced Medical Lasers, Inc. and Optronics Technologies, Inc., both of which eventually will be spun off with Phoenix retaining partial ownership. The firm's ophthalmic laser workstation and the related technology will become part of AML. Phoenix is in negotiations to acquire Refractive Laser Research Partners, a limited partnership based in San Antonio, Texas that is developing a hand-held laser probe; RLRP would also be incorporated into AML. A $2.5 mil. private placement for AML is sought, after which a merger with a publicly traded company would serve as a means to spin off the business. Phoenix' Optronics Technologies business would be composed partly of its current subsidiary, Optronics, minus Optronics' 88% owned intraocular lens manufacturing business, DGR, which Phoenix plans to sell. The remaining part of Optronics is essentially the marketing arm, and Optronics would seek to continue selling the IOLs under an agreement with DGR. Phoenix also is in negotiations to acquire Mastel Precision Instruments, a South Dakota firm that manufactures and markets diamond knives and related equipment for refractive surgery. If an acquisition deal is reached, MPI would be folded into Optronics Technologies. OTI will then seek to raise $2.5 mil. to $5 mil. through a private placement, after which a merger with another publicly traded company would serve as a means to spin off the business.