CHATSWORTH, Calif., Dec. 15, 1999 (PRIMEZONE) -- Focus Affiliates, Inc. (dba FocusWireless.com) (Nasdaq:FONE) announced today it has signed an agreement to acquire Dallas-based The Wireless Group, Inc. (dba SourceWireless.com), a privately held Internet company that operates business-to-business online auctions of wireless products. The newly combined company will use the FocusWireless.com name and will continue to be listed on Nasdaq under the symbol FONE. The deal, which is predominantly a stock transaction, is expected to be completed by the end of the year.
Michael Hedge, president and CEO of FocusWireless.com commented, "SourceWireless.com online auctions, which occur on a global basis, will enable sellers to maximize the value of their billions of dollars of wireless assets, such as airtime, handsets, infrastructure and accessories. Purchasers, including FocusWireless.com's 3,500 business customers, will be able to use this online auction site to bid on and buy new, used, over-stocked, liquidated and refurbished product in real-time.
"The potential for a wireless industry auction site at FocusWireless.com is astonishing, especially as new wireless technologies are introduced and product life cycles are shortened. SourceWireless.com's auction provides the most efficient way for buyers or sellers of surplus and obsolete assets to find each other. I am proud that we are the first to have an auction specific for the wireless industry. As we move rapidly toward deploying our comprehensive e-commerce solution for the wireless industry, SourceWireless.com provides yet another service to offer our customers."
Steven Teel, President of SourceWireless.com commented, "When we analyzed this merger, we found that our strategies were similar and complimentary. SourceWireless.com's strengths were mainly within the messaging industry and FocusWireless.com's relationships were within wireless telecom. By bringing the companies together, we will offer broad resources for our clients. In addition, FocusWireless.com provides us with proprietary Internet solutions, end-to-end transaction management and long-term strategic planning needed to achieve the next level of success."
FocusWireless.com also announced that the holders of warrants to purchase shares of Focus common stock at $1 per share that were declared in December 1997, and which expire in December 2000 have been registered with the SEC and can be exercised. The Company encourages those who seek additional information to call the Company's Lewisville, Texas office at (214) 222-7979 or e-mail at InvestorRelations@FocusWireless.com. The Company also declared a dividend to shareholders of record on February 16, 1999, in the form of a warrant to purchase shares of Focus common stock. The Company expects to distribute these warrants in early 2000. An announcement will be forthcoming when those warrants are exercisable.
About FocusWireless.com FocusWireless.com will be offering the wireless telecom industry an e-commerce solution that provides end-to-end transaction management for its business-to-business customer base. Via a proprietary web application, the Company will facilitate the sale of wireless products and offer innovative value-added services for its "B-to-B" customers, which include carriers, resellers, retailers, dealers and manufacturers. The Company intends to continue its expansion by targeting existing and emerging wireless telecom distribution channels and will offer comprehensive web-based solutions that will allow more companies reduced barriers to entry of retailing wireless telecom products.
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 potential delays in the completion of developing the Internet e-commerce solution, unanticipated costs to develop and maintain the system and potential lack of customer acceptance of this order processing method. Risks also include the costs and delays of integration of the Company and SourceWireless, including the merger of information systems, operations and personnel. 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.