FORT MYERS, Fla., Feb. 19, 2004 (PRIMEZONE) -- Hy-Tech Technology Group, Inc. (OTCBB:HYTT) ("HYTT"), today announced it has entered into a letter of intent to sell its subsidiary, Hy-Tech Computer Systems, Inc. ("HTCS"), to Aegis Funds, Inc. Both are Fort Myers-based companies.
This transaction forms part of the HYTT transformation plan announced in conjunction with its intended acquisition of Robotic Workspace Technologies, Inc ("RWT").
Upon closing of this divestiture, HYTT will have completed its exit from the previous custom system builder business that was conducted through over-the-counter outlets. HYTT's principle method for doing business will remain e-commerce enabled and centrally managed by its contracted partner, BCD2000, Inc. HYTT is in advanced discussions with other companies, which complement this strategy.
"This divestiture focuses our resources on growth businesses that are less capital intensive and which support our objectives of building a modern, profitable growth company, fueled by acquisition. Our announced acquisition of RWT, and others that will follow, will benefit from that focus and the result should enhance our shareholder value," said Martin Nielson, chairman and CEO of HYTT.
Through the 'dot-com' era, HTCS grew to serve the needs of the local VAR community, however it struggled in recent years due to the substantial requirement for capital to keep inventory in multiple outlets and to finance receivables. "HTCS had a good run for twelve years, but that way of doing business just does not produce an adequate ROI," according to Nielson.
Nielson added, "Last summer, we created a plan designed to turn HYTT into a broader, solutions based provider of technology products and services. This transaction supports that plan and is part of a series of transactions that will create a much more productive company when we are done." More announcements are expected to follow.
This transaction will involve HYTT common shares plus the transfer of the judgment with SunTrust Bank to Aegis, whose principal shareholders were founders of HTCS, and will require approval of the secured debenture holders of HYTT. Closing is targeted within a few weeks
Safe-Harbor Statement
Certain statements made herein are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, with words such as ''anticipate,'' ''believe,'' ''expect,'' ''future,'' ''may,'' ''will,'' ''should,'' ''plan,'' ''projected,'' ''intend,'' and similar expressions to identify forward-looking statements. These statements are based on HYTT's beliefs and the assumptions it made using information currently available to it. Because these statements reflect HYTT's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to HYTT's periodic filings with the Securities and Exchange Commission.