RED BANK, N.J., June 22, 2000 (PRIMEZONE) -- Calton, Inc. (AMEX:CN) announced today its acquisition of a 51% interest in Innovation Technology Partners, LLC ("ITP"), a newly formed company established to provide management and consulting services to entrepreneurial and development stage companies.
Based in Houston, Texas, Innovation Technology Partners' focus is to unite well-founded business practices and management techniques with modern technologies in order to bring a higher level of marketability to both established and start-up companies. The Company accomplishes this by delivering sophisticated solutions to established brick and mortar companies that enables them to minimize the risks of interactive business development. The Company's activities will include management development, strategic planning and the design and implementation of client growth programs. Through strategic alliances, the Company will provide technology hosting and infrastructure services such as human resources management, finance and accounting functions, and Internet/application service provider services.
In exchange for its controlling interest, Calton contributed $1,500,000 in cash and agreed to loan up to $3,500,000 to the new venture. Executive management of ITP contributed $500,000 in cash and certain assets, including client contracts, in exchange for their collective 49% interest.
Through this transaction, Calton, Inc. gains a wealth of seasoned management experience. Richard Dole, one of the three ITP Managing Partners, is a former Partner with KPMG Peat Marwick and was National Partner-in-Charge of KPMG Business Process Solutions. In addition, Mr. Dole was a former Partner and Vice Chairman in charge of the Coopers and Lybrand Process Management/Outsourcing business. Mr. Dole has left his latest position as CFO of Burlington Resources International to join ITP.
Frederick Huttner has been in the consulting business for nearly 20 years and has been instrumental in developing and restructuring management teams for both public and private companies. Mr. Huttner has also guided lients through the capital formation process along with creating and executing trategic growth programs.
James West has been a Chief Operating Officer for over 15 years. Priorto joining ITP, Mr. West was President and COO of Florafax International, Inc. (a NASDAQ listed company). During his six-year tenure at Florafax, Mr. West orchestrated a complete restructuring of the company, including equity offerings and a re-listing by NASDAQ.
Mr. G. Edward Powell, an ITP shareholder, is a Managing Director of ITP. From 1982 to 1994, Mr. Powell was the Managing Partner of PricewaterhouseCoopers, LLP's Houston office where he organized and managed the firm's NAFTA Business Center in Houston. This business center was the focal point for all PricewaterhouseCoopers client interactions with Mexico.
"By adding this level of skill and experience, plus the business path that Innovative Technology Partners has established for itself, Calton, Inc. will strengthen its merger and acquisition exposure and establish a stronger foothold in the technology business community," said Anthony J. Caldarone, Chairman of Calton, Inc.
Certain information included in this release and Company filings (collectively, the "SEC filings") under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such SEC filings) contains or may contain forward looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are matters relating to national and local economic conditions, potential adverse effects of acquisitions, the ability of the Company to identify suitable acquisition candidates and the effect of government regulation on the Company.