DALLAS, April 27, 2000 (PRIMEZONE) -- Focus Affiliates, Inc. (dba FocusWireless.com) (Nasdaq:FONE) announced today that it is reviewing its strategic options with regard to its Cellular Wholesalers (CWI) operations. Based in Lincolnshire, Illinois, CWI is a distributor of wireless electronic goods and was purchased by Focus in October 1999.
As previously reported, Focus recently has taken certain steps to reduce the overhead costs related to CWI operations. As part of its strategic review, the Company has petitioned the American Arbitration Association seeking to rescind the CWI acquisition; or, in the alternative, seeking monetary damages from the former CWI shareholders, based on the fact that the historical operating results of CWI were not accurately presented by CWI and that assets, net of liabilities, conveyed by CWI to Focus were not fairly valued. Items in question include information technology software, current assets and certain liabilities.
At this time, Focus is not able to estimate the financial impact, if any, regarding the outcome of the arbitration.
FocusWireless.com, 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's 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 e-retailers, 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 uncertainty of the outcome of the CWI arbitration, including any potential claims asserted by the former CWI shareholders, 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.