PHOENIX, Oct. 24, 2000 (PRIMEZONE) -- Frontier Adjusters of America, Inc. (AMEX:FAJ) announced today that it has agreed with United Financial Adjusting Company ("UFAC") to terminate the Merger Agreement dated as of May 2, 2000 entered into among the companies and Netrex Holdings LLC. On March 2, 2000, the companies had announced plans pursuant to which Frontier would have exchanged approximately 11.2 million shares of its common stock for all of the issued and outstanding shares of stock of UFAC and its subsidiaries, JW Software, Inc. ("JW Software"), and DBG Technologies, Inc. ("DBG").
According to Frontier's Chairman, John M. Davies, the Frontier Board determined that, "It is not appropriate for the Company to move forward with this transaction at this time."
UFAC is an insurance claim management services company, JW develops and markets claim management software, and DBG develops and markets internet-based systems and websites.
Frontier Adjusters of America, Inc. licenses and franchises independent claim adjusters throughout North America, with 680 advertised locations in 50 states, the District of Columbia, and Canada. Frontier also owns and operates independent insurance adjusting businesses in Arizona and Nevada.
Frontier, from time to time, makes forward-looking statements in its public disclosures. This press release includes statements with respect to the acquisition by Frontier of certain businesses which may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Important risks and uncertainties that could cause Frontier's results to differ materially from those contained in such forward-looking statements are detailed in the Company's filings with the Securities and Exchange Commission, including Frontier's Annual Report on Form 10-K for the year ended June 30, 2000.