TORONTO, May 31, 2007 (PRIME NEWSWIRE) -- Wireless Age Communications, Inc. (OTCBB:WLSA) ("Wireless Age" or the "Company") announced that it had closed the sale of Knowlton Pass Electronics Inc. ("Knowlton Pass") to David MacKinnon, a former employee of the Company, on May 30, 2007.
Knowlton Pass operates under the trade name Wireless Works, and is active in the broadband wireless and Land Mobile Radio business in the Niagara region. The company provides voice and data services to a variety of government and industrial clients.
The Company sold all of the issued and outstanding shares of Knowlton Pass in exchange for an effective purchase price of approximately US$720,000 (CDN$800,000), satisfied by a promissory note of US$327,194 (CDN$363,643), forgiveness by David MacKinnon of severance obligations due to him by the Company and the elimination of certain intercompany balances. Although closing occurred on May 30, 2007, Knowlton Pass has been operated by David MacKinnon since March 1, 2007. The Company recorded a discontinued operations gain on disposal of $315,800 in its statement of operations for the three month period ended March 31, 2007.
Wireless Age Chairman and CEO, John G. Simmonds commented, "Disposal of the Wireless Works business unit represents a significant step in the progression of our restructuring. All non-core assets are being disposed of and we intend to continue with the reorganization until we have returned the Company to consistent long-term profitability."
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Note: This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.