SAN JOSE, Calif., May 3, 2002 (PRIMEZONE) -- Reality Wireless Networks, Inc., (OTCBB:RWNI) announced that the Board of Directors of the Company has unanimously approved, effective May 7, 2002 (the "Effective Date"), a 1-for-2 reverse stock split of all of the issued and outstanding shares of common stock (the "Common Stock") of the Company (the "Reverse Stock Split") held by shareholders as of the close of business of the Company on May 6, 2002, and a simultaneous amendment to the Company's Articles of Incorporation to decrease the number of authorized shares of Common Stock of the Company from 50,000,000 to 25,000,000. The number of shares of preferred stock authorized to be issued by the Company will remain unaffected.
"We believe the reverse stock split will better enable us to achieve our immediate financial objectives and establish a foundation from which we can grow our business and enhance shareholder value," said President Victor Romero.
The primary purpose of the Reverse Stock Split is to reduce the number of outstanding shares of Common Stock so that the Common Stock outstanding after giving effect to the Reverse Stock Split better reflects the Company's valuation and provides a more manageable capital structure for the growth and future financing of the Company.
The Reverse Stock Split will be effected by an amendment to the Company's Articles of Incorporation and will become effective on the Effective Date. On the Effective Date, each two shares of Common Stock issued and outstanding will automatically be reclassified and converted into one share of Common Stock. Fractional shares of Common Stock will not be issued as a result of the Reverse Stock Split, but instead, any fractional shares will be rounded up to the nearest whole share. Each shareholder immediately before the Reverse Stock Split will continue to be a shareholder immediately after the Reverse Stock Split.
Reality Wireless Networks, a Nevada Corporation, is a Campbell, California-based Corporation that specializes in providing high-speed wireless Internet access. Utilizing their modular, "Reality Wireless in a Box" the company's main focus is areas that are under-served or not served at all by traditional services like DSL and Cable modem technology.
About Reality Wireless Networks (http://www.realitywirelessnetworks.com).
Reality Wireless Networks offers broadband wireless services through hybrid networks including fixed wireless, 802.11, and fiber to markets either under-served or not served by DSL and Cable modem technologies. Currently operational in California and the Pacific Northwest, the Company has targeted the residential, SOHO, and multi-tenant unit markets. For more information please contact: ir@realitywirelessnetworks.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Reality Wireless Networks, Inc. (collectively, referred to as "Reality," "we," "us," "our," and/or the "Company"), or developments in the Company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's limited operating history, lengthy sales cycles, the Company's dependence upon a relative concentration of customers, competition, product development risks and risks of technological change, dependence on selected vertical markets and third-party marketing relationships and suppliers, the Company's ability to protect its intellectual property rights and other risks and uncertainties.