Frisby Technologies Inc (Nasdaq: FRIZ - news), developers of patented ComforTemp DCC, announced today that it has further strengthened its year-end financial position by closing $700,000 in equity financing through a private placement and extending an existing line of credit.

Participants in the financing include accredited private investors from the Piedmont Triad region of North Carolina and Pittsburgh Plastics Manufacturing, Inc, a producer of the company's gel products.

The financing is through the sale of units consisting of one share of common stock and a five-year warrant priced with an exercise price of $6. Each unit is priced at $4.

Based upon strong investor interest in this current offering, the company anticipates completing up to $3m of additional financing in early 2001.

The company also announced that it has been granted an extension on its existing line of credit at a level of $1.5m through June 30, 2001, subject to certain terms and conditions.

The Company's original $2m line of credit was scheduled to expire on December 31, 2000. The company expects to complete the details of this credit extension by mid- January 2001.

Greg Frisby, chairman and chief executive officer of Frisby Technologies, said: "It is gratifying to receive such strong interest from leading regional investors and the continued support of our bank during the current unpredictability in the equity markets and the banking industry.

"With the equity infusion and this credit line extension, Frisby is confident that it has secured the financial resources it needs going forward to fuel continued strong growth and its drive towards profitability," he added.