TAMPA, Fla., Oct. 5, 2005 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP), a publicly traded acquisition and development company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc., today announced additional details regarding its proposed share spin-off of FTS Wireless, Inc.
-- FTS is seeking to acquire a very profitable privately held
Company in conjunction with the share spin-off.
-- FTS is engaged in active negotiations with several profitable
privately held Companies.
-- FTS plans to take FTS Wireless public by registering shares with
the Securities and Exchange Commission on SEC form SB-2 and
spinning off certain shares of the new Company to FTS Group
stockholders at a ratio and date to be determined.
-- FTS Wireless will seek to have its shares listed on the American
Stock Exchange or NASDAQ Small Cap.
FTS Group CEO Scott Gallagher commented, "Our current valuation modeling contains several significant variables including securing acquisition financing, successfully acquiring a profitable privately held Company generating free-cash flow of $1 million or more annually and effective registration of shares on SEC form SB-2. If these items are successfully completed, based on the amount of shares issued and outstanding we estimate the asset value of FTS Group shares to be worth $.25 to $.50 per share depending on the share price of FTS Wireless common stock." Gallagher went on to say, "Obviously we are not suggesting that the valuation estimates mentioned in this release are certain by any means. However, we are confident in our ability to execute our plans to achieve these goals. Based on my personal confidence in FTS, I have recently purchased 265,000 shares in the open market and plan to set-up a 10b5-1 buying program for the next six to twelve months shortly."
About FTS Group, Inc.
FTS Group Inc., (OTCBB:FLIP) is an acquisition and development Company focused on acquiring, developing and investing in emerging cash-flow positive Companies and viable business ventures. Its wholly owned subsidiary FTS Wireless is an emerging regional operator of retail wireless locations that market and sell next-generation wireless products and services and operate Wi-Fi HotSpots. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region. For additional information about FTS Group, Inc. or its subsidiary, please visit our web site http://www.FTSWireless.com or review periodic filings with the Securities and Exchange Commission at http://www.sec.gov.
Forward-Looking Statements
Included in this release are certain "forward-looking'' statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place reliance on these forward-looking statements, which speak only as of the date hereof.