CHOWCHILLA, Calif., Nov. 26, 2003 (PRIMEZONE) -- Global Diversified Industries, Inc. (OTCBB:GDVI) today announced that it has entered into a "binding letter of intent" to acquire a private company in the southeast region of the U.S. to complement Global Diversified's business model by expanding both its product line and its customer base outside California. Both parties have agreed to complete the negotiating process by January 23, 2004. It is estimated that 80% of modular/portable type buildings for educational use require the need for steel fabricated accessibility structures, these products represent roughly 6% of the total revenue generated for each modular/portable building sold in California. Therefore, industry forecasts of $350,000,000 in overall sales estimated for the California modular industry in 2004 should render approximately $17,000,000 revenue for accessibility products.
The southeast based corporation provides custom steel fabricated ramps, decks, platforms and pedestrian bridge type products to the education, commercial and institutional sectors. Their current customer base ranges from the southeastern U.S. through the west coast. All products meet current national and California building codes, which allows Global's subsidiaries to immediately market the products without the need for engineering upgrades or revisions.
Global Diversified Industries Chairman and CEO Phil Hamilton said that, "We are fortunate for the opportunity to enter into this preliminary acquisition agreement with this company, since it possesses an established line of custom products perfectly suited to accompany our product lines. Furthermore, the addition of this product line will offer the Company's subsidiary, Global Modular, Inc., customers another vendor in a category mainly dominated by one private California Company.
Mr. Hamilton said, "Upon the successful conclusion of the potential acquisition, our in-house sales and marketing staff are positioned to spontaneously introduce these products to the West coast market for immediate sales bookings. We are currently developing a marketing plan to assist the prospective seller in their marketing campaigns for the southeast region of the U.S."
"With this acquisition, Global Diversified will be in a position to offer a better product versus all competing brands at a competitive price, due to state-of-the-art fabrication technology along with recent scientific advances in materials," Mr. Hamilton said. "This is a major step forward for the Company." Hamilton adds, both parties have agreed to finalize the negotiating process by January 23, 2004.
About Global Diversified Industries, Inc.
Global Diversified Industries, Inc. is a holding company controlling two wholly owned subsidiaries. For investor information contact Paul Knopick at 949-707-5365 or pknopick@eandecommunications.com.