DALLAS, April 6, 2000 (PRIMEZONE) --
-- Company signs agreement with Wireless Assets to provide
B2B e-fulfillment for e-commerce channels.
-- FocusWireless is currently working to complete supply and
e-fulfillment agreements with major wireless manufacturers,
network operators and other telecommunications service providers.
-- Company is re-positioning its operations and expects to save more
than $4 million annually in overhead costs.
-- FocusWireless is seeking to raise additional capital to address
shortages and to fund its growth strategy.
Focus Affiliates, Inc. (d.b.a. FocusWireless.com) (Nasdaq:FONE) announced today that it has signed an e-fulfillment agreement with Wireless Assets, Inc. and that it is working to complete supply and e-fulfillment agreements with a number of manufacturers and other telecommunications service providers. FocusWireless plans to provide product and e-fulfillment services to emerging wireless distribution channels through its Web-enabled interface.
Under its agreement with Wireless Assets, FocusWireless will manage inventory and facilitate delivery of products offered through Wireless Assets' turnkey e-business solutions for the wireless communications industry. Wireless Assets serves more than 100 eRetailers and other "brick and mortar" wireless dealers throughout the United States. Further details of the agreement were provided in a separate press release today.
"We are intently focused on executing our new B2B strategy, and we are starting to see the results," said Mark Fruehan, executive vice president for FocusWireless. "This agreement is the first of a number of agreements that we expect to complete in the next several quarters. It demonstrates the viability of our new strategy and business model going forward."
The Company also announced the re-positioning of its operations as it moves from traditional distribution to an e-fulfillment operating model. Consequently, FocusWireless has shut down its Chatsworth (CA) and Miami facilities and plans to transition its Mid-West operations to better support the e-fulfillment business. The Company plans to serve existing distribution customers through e-commerce channels. The restructuring is expected to reduce annual overhead costs by approximately $4 million, which primarily reflects a reduction of 60 positions. The Company plans to take significant one-time charges in the fourth quarter of 1999 and the first quarter of 2000, although the amount of these charges has not yet been finalized.
"These are important and necessary steps to facilitate the implementation of our core B2B growth strategy," said Michael S. Hedge, president and chief executive officer. "As demonstrated by our recent agreement with Wireless Assets, we are moving ahead decisively with our plan to become a leading provider of wireless e-fulfillment services for B2B customers. While employee layoffs are very difficult, we recognize that our strongest growth opportunity is to facilitate our client-partners' success in the B2B arena -- not in the 'old economy' of wholesale distribution. FocusWireless is committed to building shareholder value through B2B opportunities and other initiatives."
The Company currently is seeking to raise additional private placement capital to support its B2B initiatives and to maintain its current operations, which have been adversely affected recently by operating losses. The Company hopes to raise additional capital within the next 90 days.
About FocusWireless.com
Focus Wireless, traditionally a wholesale distributor of wireless products, is transitioning to become a leading developer of B2B e-fulfillment solutions for the wireless telecommunications industry. The Company strategy is to provide comprehensive, Internet-enabled solutions to wireless manufacturers, network operators, and other service providers throughout the United States. These services include end-to-end transaction management and facilitation services, such as product procurement, inventory risk management, handset programming, kitting and returns management. The Company is primarily focused on two fast-emerging telecom distribution channels -- mobile virtual network operators (MVNOs) and wireless eRetailers, which offer bundled communications products and services, Web-enabled messaging devices and related services.
Going forward, Focus Wireless.com plans to generate its revenues primarily by providing fee-based services to new wireless telecom distribution channels, offering Web-based solutions that are designed to accelerate the growth of these new emerging companies. For more information on the Company, please visit its web site at www.focuswireless.com.
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward looking statements. Risks include the need to raise additional capital to continue operations, potential delays in developing Internet e-commerce solutions, potential lack of customer acceptance of this new order processing method, unanticipated costs to develop and maintain the Company's technology systems, and the Company's ability to transition to a fee-based service model. Further management discussion of risks and uncertainties can be found in the Company's quarterly filings with the Securities and Exchange Commission and other periodic filings.