COLORADO SPRINGS, Colo., Jan. 21, 2004 (PRIMEZONE) -- Maximum Dynamics, Inc. (OTCBB:MXDY), a technology solutions company that combines cutting edge technology with its back office and administration services to provide client side support and business process management services, announced today that it has completed the purchase of the remaining 49% of Unilogic Solutions (Pty), Ltd. ("Unilogic"). With the purchase, Unilogic, which is a South African Proprietary Limited Company, is now a 100% wholly owned subsidiary of Maximum Dynamics ("Maximum").
Under the Agreement, Maximum will acquire the 49% of the stock currently outstanding in Unilogic for a total of $196,000, which will be paid with 1,000,000 shares of Maximum's restricted common stock. Unilogic has developed a suite of electronic content management and business workflow software applications that are being sold as technology solutions. The same software has also been integrated with Maximum's core software technology solution, Datalus, to create a web-based platform that will be deployed throughout Maximum's offices, back office service centers, partners and contractors throughout the world.
Maximum initially acquired a majority stake in Unilogic because Unilogic's technology solutions target other markets that were not being addressed by Datalus, such as human resource management, insurance claims processing, corporate procurement and supply chain management, employee labor relations, debt management, contracts management and loan application process management. The acquisition of 100% of Unilogic was important because it solved several issues all at once, such as Maximum's need for a South African subsidiary, the need to own the intellectual property within Unilogic, and most importantly Unilogic's business in the pipeline.
"We move very carefully with strategic, technological and operational intent behind everything we do," said Joshua Wolcott, Maximum's CFO, who is currently in South Africa to structure operations and close several deals. "We had a few issues in terms of having the correct profile going into service contracts and conduct business development. This was a major piece of that puzzle that we had to cement so that we can move forward fluidly. We can now position Unilogic to take equity stakes in our partners and other acquisition candidates without diluting Maximum's ownership. Plus, we now have a wholly owned South African subsidiary with significant intellectual property in it and through which significant business has been directed, which definitely helps us with our market image there as well as throughout the African continent."
Unilogic's current business in the pipeline consists of about twenty proposals under consideration, most of which were submitted during the last quarter of 2003. Unilogic has decided to change its pricing strategy so that contracts may not require the extensive corporate governance processes currently required to approve of its contracts. As such, Unilogic is busy re-submitting its proposals. While this has pushed back the timeline of contracts closing, it will hopefully lead to shorter sales lead time moving forward. Under the new pricing strategy, Unilogic's management expects to be closing contracts that contain smaller revenue amounts up front with larger follow-on revenues once buy-in has been obtained and the customer is locked into the solution.
Management of Unilogic will be left intact with operations moving to the Maximum Dynamics House, a business center complex in Cape Town, South Africa.
For more information on Maximum Dynamics, visit the company's website at http://www.maximumdynamics.com.
For more information on Unilogic Solutions, visit the company's website at http://www.unilogic.co.za/.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Maximum Dynamics assumes no obligation to update the information contained in this press release. Maximum Dynamics' future results may be affected by its ability to continue to implement its hedge fund administration services, its newly acquired Internet marketing capabilities, its dependence on procuring highly competitive hedge fund administration contracts, its dependence on hiring and retaining qualified professionals, potential fluctuations in its quarterly operating results, its dependence on certain key employees and its ability to timely and effectively integrate the businesses it may acquire.