MIAMI, March 27, 2002 (PRIMEZONE) -- Today, E-Rex, Inc. (OTCBB:EREX) filed a formal complaint with the Securities and Exchange Commission against a minority group of shareholders led by Terry Shores and Chris Ford. The complaint alleges that Ford and Shores, along with a small group of minority shareholders, have been manipulating the Company's stock price by continuously posting false and misleading information on the Internet and in press releases, and they have been attempting an illegal takeover of E-Rex since August 2001 in violation of the tender offer rules of the Securities Exchange Act. The complaint further alleges that the group failed to make necessary filings with the Company and the Securities and Exchange Commission regarding their ownership position in the Company. The complaint also alleges that the group's recently filed civil action is part of a multifaceted and coordinated program to lower the Company's stock price and to slander and replace current management.
"The plaintiffs have repeatedly declined our invitations, beginning back in August of 2001, to review our finances and/or hire an independent third party auditor," stated Don Mitchell, E-Rex Chairman. "Instead they have chosen to victimize E-Rex and other shareholders by posting inaccurate and defamatory statements regarding the Company, its future prospects, and management, using Internet-based stock discussion message boards."
In responding to the group's civil action and at E-Rex's formal request, Judge James C. Mahan recently appointed a special master to audit E-Rex's financial records at the plaintiff's expense. The judge has not granted the plaintiff's request to appoint a receiver to temporarily run the Company, but has instead continued the hearing on this matter. The case has not been granted class action status.
"We are working closely with the special master and will gladly provide any financial records that he might request. We offered to do this months ago," stated Carl Dilley, E-Rex President and CEO. "It is unfortunate that we have to divert precious resources to address this matter, especially since we are so close to officially beta testing our first Dragonfly prototypes."
Dragonfly Product Development Nearing Beta Phase
Progress reports from development partners at Valcom, Ltd. indicate that the prototype unit's external cases, touch sensitive display, paper feed, color printing unit, scanner, fax, infrared data port, compact flash memory, and most internal drivers and interface software are already fully operational. Dragonfly is presently in the debugging and fine-tuning stage. Recent photos of the prototype units are now available.
The dedicated development team will continue working full-time on project completion and current estimates indicate official beta testing to commence once the final printed circuit boards are delivered and the remaining software and port testing is completed, expected shortly.
During the coming months Management intends to provide several in-person demonstrations for potential manufacturing and marketing partners. The Dragonfly is specifically designed to be compatible with a variety of networks, programs, and external devices, making it the perfect platform for joint ventures.
"E-Rex is now actively seeking a complementary arrangement to manufacture and market the new Dragonfly. Once our prototypes are ready we intend to focus our energies on making that happen," stated Dilley.
About Dragonfly
The Dragonfly Handheld PC and Document Management Appliance combines the latest portable technology with the office tools today's business users require, all in a stand-alone unit about the same size and weight of a laptop computer. Users can surf the Internet, send and receive email, color print on plain paper, copy, fax, and scan -- all from one unique portable device.
A 206 MHz Intel StrongArm processor running the Windows Handheld PC (CE) operating system powers Dragonfly. Onboard it has 32 MB of upgradeable SDRAM and can accommodate hi speed Flash RAM from 48 to 440 MB. The keyboard is 2/3rd of a full size keyboard, and the display is a touch-sensitive color LCD. The unit also houses color-printing technology from the Canon Portable Bubble Jet, a fully functional fax, copier, scanner, dual PCMCIA slots, serial, parallel, USB, and infrared ports.
About E-Rex, Inc.
Headquartered in Miami, E-Rex, Inc., (OTC Bulletin Board: EREX), is a publicly traded technology company dedicated to designing and the future production of stand-alone user friendly portable devices and direct Internet access products targeted at mobile enterprise users.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities and Exchange Act of 1934 and is subject to the safe harbor created by these sections. E-Rex, Inc. assumes no obligation to update the information contained in this press release. Certain information included herein may contain statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as operating costs, capital spending, financial sources, and the effects of competition. Such forward-looking information is subject to changes and variations which are not reasonably predictable and which could significantly affect future results. Accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company.