SAN FRANCISCO, April 27, 2005 (PRIMEZONE) -- Tribeworks (OTCBB:TRBW) is pleased to announce that as part of its previously announced plan of reorganization, the company intends to enter into the business of providing external Information Technology (IT) application support services for organizations with large IT functions. As its entry into this business, the company plans to acquire, for cash, TakeCareofIT Ltd., doing business as Atlas Technology Group, a Gibraltar Corporation that has recently been established to provide such services.
To facilitate this redirection, the Company is proposing to consolidate its stock on a 1 for 3 basis, such that post consolidation there will be 1,569,552 shares issued and outstanding. The share consolidation is subject to shareholder approval, which will be sought at the Company's upcoming annual general meeting, currently scheduled for June 24, 2005. In addition, the Company wishes to announce a private placement of 19 million post-consolidation shares of common stock at 1 cent per share for total proceeds of $190,000. The funds will be used to pay off certain corporate debt; the Company will have 20,569,552 common shares outstanding after the placement. In addition, a $500,000 preferred stock financing is also being arranged to provide working capital. The Company is also pleased to announce that Dr. David Hayes has been appointed to the Board of Directors.
About Atlas Technology Group
Atlas Technology Group offers custom, outsourced application software support services for clients with large IT functions across all industry groups.
Recent developments in software, monitoring systems and communications now permit for IT support to be efficiently offered from remote sites. Through outsourcing, companies can then focus on their core IT operations and not have to devote significant internal resources to this mission critical support function. It is estimated by Forrester Research (www.forrester.com) that expenditure on application and business support services will grow to over $220 billion by 2006. Based on the successful experience of IT outsourcing in general, the growth of outsourced support services is expected to accelerate over the next several years.
Atlas Technology Group is in the process of setting up two data centers to provide and operate the required infrastructure. The centers will be located in secure co-location facilities, and will house all primary systems, such as call tracking, knowledge base, monitoring, billing and access portals. The servers to run these functions will be in a fully redundant configuration, with on-demand high bandwidth and on-site backup and support services.
Support staff will be situated in two primary locations such that 24 hour coverage can be provided seamlessly in two twelve hour periods. Initial locations planned, for reasons of operating costs and significant tax advantages, are Malta, a member state of the European Union, and New Zealand. Both are English speaking, with a sufficient supply of educated operators, and are situated in time zones that complement the provision of 24 hour service.
Atlas Technology Group is marketing its services in a number of ways. Several initial contacts have been made using a reseller strategy with established IT service providers. Atlas Technology will provide its services to these organizations, which will then brand and resell them under their own names. Resellers are attracted to this approach for both cost and business focus reasons. Based on extensive research and analysis, Atlas believes that in most cases it can offer its support services at a significantly lower cost than the reseller partners can themselves, allowing resellers to focus on higher margin systems development rather than support.
Additionally, the company has entered into discussions with several large organizations to contract directly the outsourcing of their IT support function. Going forward, the company is in the process of establishing a global sales team to market and sell the company's services to resellers, corporations and government agencies.
Atlas Technology Group Management Team
Robert Altinger, CEO -- extensive experience in IT support at a senior level with J.P. Morgan, Microsoft and Avanade, a joint venture between Microsoft and Accenture. Robert has also successfully launched his own IT consulting company, WebConsult Inc, an approved vendor of IT services to Microsoft, among other clients.
Peter Jacobson, CSO -- extensive experience in founding, start-up, and managing IT service and support companies worldwide. He has developed and implemented successful sales and marketing strategies which have resulted in long-term IT support contracts with Fortune 500 companies including Bank of America, PACCAR, and Fluke, among others.
David Hayes, Ph.D., CFO -- extensive business experience in public companies and public markets, as well as a principal in several financial services companies. In addition, a former tenured professor of business at the University of British Columbia, a leading Canadian University.
Certain statements made in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. This press release contains forward-looking statements that include risks and uncertainties concerning the actuality of the reorganization, as well as Tribeworks' future strategic and operational plans. Actual results may differ from those set forth in this press release due to certain risks and uncertainties, including the ability to achieve market acceptance of any new business plan, the risks inherent in acquiring and integrating a new corporate strategy, unanticipated expenditures and changing economic environments. Among other things, economic trends and changes in the capital markets may have an adverse effect on the success of the proposed reorganization. These and other risks are detailed from time to time in reports filed with the SEC, including Tribeworks' quarterly reports on Form 10-QSB and its annual report Form 10-KSB. The consummation of the reorganization is subject to certain closing conditions and may not be consummated on the terms proposed or at all.