TORRANCE, Calif., Aug. 30, 2002 (PRIMEZONE) -- Nova Communications Ltd (OTCBB:NCVM) announced today the sale of its telecommunications subsidiary, Communications 2000, a longtime provider of telephone and voice mail systems to businesses in the Southern California marketplace.
The sale of Communications 2000 is part of a significant restructuring process that is designed to improve the balance sheet and increase the profitability of the parent company, Nova Communications.
"Every company in the telecommunications industry has been hit by string of unprecedented events. Insufficient capital, cutbacks in business spending and the collapse of telecomm stocks have all had a terrible impact," said Ken Owen, President of Nova Communications. "The events of 9/11 and the general malaise prevalent in the telecom industry combined to exacerbate the difficulties in implementing the Communications 2000 business plan. Nova is continuing its efforts in the communications sector, but at this time the best course of action for Nova Communications is to redirect corporate resources into operations that provide a better return for the company and offer a brighter long term outlook."
The TEC Networks website is located at www.tec-networks.com.
About TEC-Networks
TEC-Networks sells and services business telephone systems, voice-mail systems, unified messaging platforms, voice-over Internet protocol and Internet services. The company serves more than 5,000 businesses and represents approximately 400 vendors. Through a distribution agreement with Nortel Networks, TEC-Networks markets a full line of business telephone products, including Business Communications Manager, companion, Meridian, Norstar and Symposium Manager. TEC Networks is headquartered in Torrance, Calif., with offices in Redondo Beach, Calif. and services in Concord, Calif. Nova Communications (NCVM) is the major shareholder of TEC-Networks. For more information, visit www.tec-networks.com.
Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, the impact of competition, the success of existing and new product releases, the management of our growth, other risk factors inherent in the telecommunications industry, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.
Nova Communications has and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on Nova Communication's results of operations and financial condition. However, no assurances can be given that Nova Communications will be successful in these efforts. For further information, please contact Ken Owen, Investor Relations, TEC-Networks, 800-869-0912, info@tec-networks.com.