LEVITTOWN, Pa., July 1, 2004 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP) today announced that its Chairman and Chief Executive Officer has agreed to accept 625,000 shares of the company's common stock valued at $.20 a share in lieu of all 2004 cash obligations due for salary and bonuses. The transaction will result in Mr. Gallagher owning 5,989,951 shares of FTS Group, Inc.
Chairman and Chief Executive Officer Scott Gallagher commented: "As a result of my firm belief in both the short and long term success of FTS shares, I've agreed to convert my entire 2004 salary and cash bonus into an additional 625,000 shares of the companies common stock valued at $.20. With a substantial acquisition pipeline now in place, access to capital will be an essential requirement to future successful execution of our business plan and ultimately the drive to profitability."
FTS would like to clarify a major reporting error on Yahoo Finance. Yahoo Finance incorrectly reported that Mr. Gallagher received an annual salary of $1.22 million and that FTS receives its revenue from the former apparel business. FTS derives 100% of its revenue from its wholly owned subsidiary FTS Wireless, Inc. and Mr. Gallagher's annual salary has been $100,000 since acquiring control of FTS in January of 2002 by purchasing a large block of shares from previous members of the board of directors and redirecting the company. FTS has advised Yahoo and Reuters of these reporting errors for some time yet no corrective actions have been taken. FTS wanted to be certain its shareholders and potential investors are aware of this serious reporting error on Reuters and Yahoo Finance when considering an investment in our company.
About FTS Wireless, Inc.
FTS Wireless, Inc. is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services and operate Wi-Fi HotSpot's. FTS Wireless currently operates six retail wireless locations in the Florida Gulf Coast region and one location in the Philadelphia suburban market and worldwide through its e-commerce site www.SatPhoneCenter.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.