Business News

Kronos Announces Changes to Operating Plan

Friday 10. October 2008 - Kronos Advanced Technologies, Inc. ("Kronos"), (BULLETIN BOARD: KNOS) announced today that, following receipt of a notice of default by AirWorks Funding LLLP, one of its secured lenders, and in light of the lack of near term revenue opportunities, the outlook for its product development effort and lack of funding alternatives, the Board of Directors, with the concurrence of the independent committee of the Board, has determined that it is necessary to curtail operations and reduce its workforce to the fullest extent necessary in order to conserve remaining assets and maximize their value.

As publicly announced last week, Kronos has been, and continues to be, in discussions with its secured lenders regarding the outstanding obligations under the secured promissory notes, the alleged occurrence of an event of default, and Kronos’ future operational plan, and the independent committee of the board is investigating strategies for maximizing the value of Kronos’ operations and assets. The secured lenders have indicated that they do not intend to provide Kronos any additional funding pursuant to the secured promissory notes or otherwise.