NEW YORK, Aug. 29, 2002 (PRIMEZONE) -- Exus Networks, Inc. (OTCBB:EXUS) announced today that it has reduced debt by 27% as part of an ongoing effort to strengthen its balance sheet, satisfying the restructuring criteria for the previously announced acquisition of the Global Business Development Division (GBD) of New Millennium Development Group (NMDG).
A total of $266,000 due to seven consultants, and former employees has been converted at $.50 a share into 532,000 shares of Exus common stock. Unified Networks Ltd. which was owed $200,000 has converted it's debt into 2000 shares of newly issued Series A Preferred shares. These shares are convertible, at the option of the shareholder into 400,000 shares of Exus common stock, and carry super-voting rights of 50,000 votes per preferred share. A vendor with an accounts payable balance of $327,360 has agreed to accept $32,736 in full payment of that debt. In total, liabilities of $760,624 have been forgiven or converted to equity.
Having met the restructuring criteria established by NMDG, Exus now expects the acquisition of GBD from NMDG to be closed by October, 2002.
"This is great day for Exus," commented Mr. Isaac Sutton, Exus' president and chief executive officer. "Exus has today reduced its debt by 27%. We are continuing our debt reduction efforts and hope to have additional results to report in coming weeks. The greatly strengthened balance sheet will facilitate raising the capital needed for Exus to execute on its business plan."
Mr. Daniel Imperato, Consultant and major shareholder of New Millennium Development Group commented, "Support for the Company has been overwhelming. Conversion by Management, Consultants and Ex-employees show their continued support and their conversion at $.50 a share price is a strong sign that Exus is undervalued. The future for Exus is bright and the reception to Exus business has been well received by my worldwide partners."
About Exus Networks Incorporated
Exus Networks is a global provider of a broad array of value-added services, concentrating on Distant Education, delivered via a combined satellite and terrestrially based network. These services are provided to a diverse client base that includes medium to large multi-national businesses, universities, Internet service providers and government agencies. Through service agreements and strategic relationships with satellite network operators, teleport facilities, leading telecommunications partners and the Company's satellite gateway and data center in New York, Exus Networks benefits from the growing need for affordable, premium quality, managed data services. This is particularly true in emerging markets, where Exus benefits from being a first-mover advantage. To learn more about the Company, please visit its Website at http://www.exus.net.
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC.