WHITEHOUSE, N.J., Jan. 15, 2003 (PRIMEZONE) -- AAMPRO GROUP, Inc. (OTCBB:TDSY) announced today that it acquired AMSTAFF, Inc., a computerized payroll and administrative services company. The transaction was structured as an asset purchase with the consideration being paid in stock options on an earn-out basis. The acquisition closed January 2, 2003. Concurrent with the acquisition, AAMPRO formed a new subsidiary entitled AAMPROPAY, LLC. to market the payroll services. AAMPRO CEO, Stephen Farkas commented: "The payroll services sector is an important component of our growth strategy and this will help leverage our existing marketing campaign to cover a broader target market." Terri Munkirs, CEO of AMSTAFF, stated: "We are very excited and look forward to contributing to such a vibrant organization."
AAMPROPAY will focus its attention on small, medium and large sized companies on a regional basis initially and eventually expand the service radius over the next eighteen to twenty-four months. The introduction of AAMPROPAY will allow the company to compete in the $500 billion plus payroll services arena. CEO Stephen Farkas further stated that the expectations for 2003 for this new division are approximately $2,000,000 in revenue with earnings of 10%. As a result of this acquisition, AAMPRO GROUP, INC. is increasing its company wide revenue forecast for 2003 from $30,000,000 to approximately $34,000,000 with earnings potential increasing into seven figures.
About the Company:
The Company, through its subsidiary AAMPRO, Inc. ("AAMPRO"), primarily conducts its business operations as a professional employer organization ("PEO"). AAMPRO provides a broad range of services comprised primarily of employee leasing and human resources management. These services include payroll and benefits administration, health and workers' compensation insurance programs, state and federal labor compliance, tax filings, safety program design and management and other related services to small and medium-sized businesses nationally with a primary concentration in the tri-state (New York/New Jersey/Pennsylvania) region. AAMPRO was organized as a corporation in 1995 and has provided PEO services since inception.
AAMPRO's services are designed to improve the productivity and profitability of small and medium-sized businesses by relieving business owners and key executives of many employer-related administrative and regulatory burdens that enable them to focus on the core competencies of their businesses.
Forward-Looking Statements
This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.