LOS ANGELES and SEOUL, Korea, , August 11, 2003 (PRIMEZONE) -- MB Tech, Inc. (OTCBB:MBTT) announced today that it has entered into an agreement to acquire the US and German operating subsidiaries of Willtek, Inc. (Korea).
It is envisioned that Willtek-Korea will assist in the restructuring of the US and German operations. The proposed restructuring should produce revenues exceeding $50,000,000 US, and projected consolidated adjusted earnings before taxes (EBITDA) for the two subsidiaries exceeding $4,000,000 for 2003 for MB Tech. Under the terms of agreement MB Tech will acquire the US and German operating subsidiaries for cash and stock. The exact amount of cash and stock will be determined subsequent to due diligence. MB Tech will initiate a high yield, non-convertible bond financing for the cash portion of the acquisition and issue restricted common stock from treasury for the balance of the acquisition.
Additionally, MB Tech will enter into an exclusive license agreement with Willtek Korea to carry on the global research and development and engineering activities of Willtek.
Commenting on the structure of the acquisition, Mr. Sangeon Park, Chief Financial Officer of MB Tech stated, "The acquisition will not constitute a statutory merger between MB Tech, Inc. and Willtek-Korea. This is an acquisition of the US and German operating subsidiaries and an exclusive R&D licensing agreement."
Hanwook Bae CEO of MB Tech, Inc. added, "We are pleased to have the opportunity to make these acquisitions. The envisioned restructuring will benefit all of the companies involved in the deal and help to build shareholder value for MB Tech."
The transaction is dependent upon several factors including due diligence, final structure and financing.
About Willtek
Willtek manufacturers and markets a comprehensive range of cutting-edge solutions for testing, measuring, and analyzing RF networks and devices globally.
Willtek is a recognized high-tech partner to wireless manufacturers and service providers. The company is well on its way to becoming a leader in its respective markets through internal growth, partnerships, and merger and acquisition activity.
For more information refer to the Company's website at: http://www.willtek.com
About MB Tech, Inc.
MB Tech is a global manufacturer and distributor of satellite components.
The primary product MB Tech produces is ``LNB'' Low-Noise Blockdown converters, which are the essential element enabling DBS satellites to receive and convert satellite transmission signals. MB Tech currently serves the satellite television market, and is expanding to serve the satellite radio and military hardware sectors. MB Tech manufactures several proprietary LNB solutions that differentiate it from competitors. MB Tech's product line includes a dual-horn LNB which allows multiple set-top boxes to be connected to a single satellite dish, enabling viewing of multiple channels simultaneously on different television monitors, and a tri-horn LNB, which provides the ability to download signals from multiple satellites over a single dish. For more information refer to the company's website at: http://www.mbtech.us
Safe Harbor Act Disclaimer
The statements contained in this release and statements that the Company(s) may make orally in connection with this release are not historical fact and are forward-looking statements within the meaning of the private securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements, as such statements involve risks and uncertainties that could significantly impact the company's business and the actual outcome and results may differ materially.