Top Roll-Your-Own Tobacco Companies Ink Exclusive Licensing Deal and Future Legal Cost Sharing Agreement

Source from:  PRNewswire 11/21/2011

RYO Machine, LLC (RYO) and SAM Manufacturing, LLC (SAM) today announced a major licensing agreement, bringing together two of the leading U.S. manufacturers of large scale and table top roll-your-own tobacco machines. These machines are currently being used by customers in over 40 states. In addition to this agreement, SAM has agreed to assist in any future legal costs in actions against state and federal regulators regarding the use of roll-your-own tobacco machines in a number of states across the country. RYO has granted an IP license to SAM for use of RYO's patent pending technology in SAM's Quick Draw Express machines. The technology is used in RYO Filling Stations to insert loose leaf tobacco into rolling tubes. "This is a great opportunity to work with RYO to improve the quality of our machines and the experience for the customer who wants to roll their product in a smaller quantity," said Paul Yanachik, SAM President. "We are committed to the legal fund as well because we want to ensure that our machines remain fully operational. It is vitally important for SAM Manufacturing that we share the responsibility with our retailers and brokers to ensure that our machines are compliant with local, state and federal laws." Phil Accordino, CEO of RYO stated, "There are several competitors in this market, we aren't the only ones. I am appreciative of SAM's willingness to step up and help us offset the legal costs that are necessary to stay in business around the country and defend the rights of our customers who choose to roll their own tobacco products. Others are quietly watching us promote the industry and sitting on the sidelines. I would encourage their support, because without customers we have no industry." The Quick Draw Express machine is marketed to retail establishments that sell loose tobacco. Unlike the RYO Filling Station, the Quick Draw Express requires a customer to continuously feed rolling tubes into the machine, limiting the customer to 50 tubes per rental period. About SAM Manufacturing: SAM Manufacturing, LLC is located in Boardman, Ohio and has 15 employees. You can view their machine on the company website, www.quickdrawmachines.com About RYO Machine: In operation since 2008, RYO Machine LLC is located Cincinnati, Ohio. The RYO Filling Station enables cost conscious customers to purchase a customized combination of tobacco, tobacco tubes and filters and use the machine for rolling-their-own. The machines popularity has increased as Congress has raised taxes on certain types of tobacco. The company has 1,700 machines in 40 states and employs 31 people. An internal study estimates that more than 4,500 direct jobs are created though manufacturing and distribution of RYO Filling Stations. You can view their machine on the company website, www.ryofillingstation.com SOURCE SAM Manufacturing, LLC; RYO Machine, LLC. Enditem