LEVITTOWN, Pa., May 6, 2004 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP) today announced that the company has signed an agreement to purchase 100% of the outstanding shares of a profitable Midwest based company engaged in the prepaid industry. The target company posted annual revenue of approximately $11.7 million US for 2003 and generated cash flow of approximately $400,000; the Company has been profitable for 4 years running. Due to the non-disclosure agreements, the name of the target Company and details of the transaction has been withheld.
FTS Group, Inc. Chairman and Chief Executive Officer Mr. Scott Gallagher commented, "Our goal since taking control of FTS in early 2002 was to build real, sustainable value for our shareholders. Today FTS has taken a huge step forward in the realization of that goal. We have secured an agreement to acquire a company that has grown from revenue of approximately $5.1 million in 2000 to post revenue of $11.7 million for 2003, all the while consistently generating strong cash flow." He added, "In addition to the size and cash flow of the company, FTS Wireless, Inc. will gain access to more than 3,000 retail distribution points in which to introduce its prepaid wireless product offering to."
FTS Group, Inc. will provide additional details regarding the deal as the agreements allow. The company plans to close the deal within the next 90 days and will set up a new wholly owned subsidiary company to facilitate the transaction.
About FTS Group, Inc.
FTS Group, Inc., traded on the OTC Bulletin Board under the ticker symbol FLIP, is focused on developing, investing in and acquiring cash-flow positive businesses and viable business projects, primarily those in the technology, communications and wireless industries. Through our wholly owned subsidiary FTS Wireless, Inc. (FTSW), we are engaged in a targeted, strategic development strategy to consolidate the highly fragmented cellular phone and services industry and build a profitable business. FTSW currently operates 5 retail wireless locations and one kiosk in the Florida market. In addition, FTSW operate one retail location in the Suburban Philadelphia Market and worldwide through its e-commerce sites, www.SatPhoneCenter.com and www.CellularDeals.com. For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.
Forward-Looking Statements
Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.