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Tuesday March 9, 9:57 am Eastern Time
Company Press Release
ATEC Group, Inc. Acquires Nexar Technologies' Patents and
Trademarks and Creates New Manufacturing Technology
Division
Management Projecting New "Nexar Technologies" Division Will Contribute
Over $100 Million In Annual Revenue
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--March 9, 1999-- ATEC Group, Inc. (Nasdaq:ATEC - news) today announced that it has acquired the
patents and trademarks of Nexar Technologies, Inc.'s (OTC BB:NEXR) popular XPA(tm) PC cross processor architecture in a court approved
transaction. Additionally, ATEC will be establishing a new manufacturing technology division, (also known as Nexar Technologies, Inc.), to focus
primarily on producing the industry's only ''future ready'' personal computing system. Providing unparalleled support for new and emerging
technologies, the Nexar XPA(tm) PCs enable consumer and business users to reduce ownership costs, protect their technology investments and extend the
lifecycle of their personal computer.
NEXR's key management team has agreed to join ATEC and will assist the Company in maximizing market penetration for the XPA(tm) PC and the
subsequent lineage of products in development. Specifically, Al Agbay, former Chairman, CEO and President of NEXR, will become President and CEO
of ATEC's new division.
According to Surinder Rametra, Chairman and CEO of ATEC Group, ''Our objective is to become the industry leader in designing and marketing personal
computers with technology that enables easy upgrades at minimal cost. Nexar's computing approach is one of the best examples of this type of
differentiation that I've seen and now provides ATEC with a clever and proven solution to the problem of obsolescence.''
Continuing, Rametra added, ''ATEC has clearly recognized the necessity to redefine our corporate growth strategy. As such, by manufacturing our own
patented model and brand of PC's, we realize some immediate benefits -- not the least of which is the reclassification of ATEC from a computer reseller to
a manufacturing technology company, which should allow us to enjoy significantly improved market multiples. Furthermore, the new Nexar division is
expected to contribute over $100 million in sales and $3 million in net income in the first full year in operation. Gross margins in this area of operation are
expected to exceed 20%.''
Al Agbay, President and CEO of Nexar Technologies, Inc., stated, ''With ATEC's proven resources, outstanding reputation and impressive network of
industry contacts, achieving mass market awareness and acceptance of the new XPA system should be dramatically enhanced. For years, Nexar has
understood the prevailing problems associated with computer obsolescence and has striven to deliver practical and user-friendly solutions. We are looking
forward to incorporating our technological expertise with that of ATEC's to ensure that the XPA(tm) platform technologies are successfully perpetuated,
thereby permitting us to effectively seize the opportunity at hand.''
Investors are invited to participate in a conference call featuring Surinder Rametra and Mr. Al Agbay scheduled for Tuesday, March 9, 1999 at 4:05 P.M.
Eastern Standard Time. To participate, please call 1-800-526-7151 or over the Internet through VCall at http:www.vcall.com.
About Nexar's XPA(tm) PC Architecture
The rapid pace of technological change -- accelerated by successors of new processors, operating systems and applications which challenge system
performance -- make conventional PC's direct prey for obsolecence. The patented split motherboard design and easy access chassis of the patented
XPA(tm) system enables customers to easily and affordably upgrade to rapidly changing and enhanced processor technologies, while retaining their
investment in storage devices, operating systems, video, communication, memory, peripherals and other key components. In addition, the XPA(tm)
system components can be easily upgraded without the assistance of a technician.
About ATEC Group, Inc.
Based in Hauppauge, New York, ATEC Group, Inc. is a leading system integrator and provider of a full line of information technology products and
services. As a one-stop company for the computer needs of businesses, professionals, government agencies and educational institutions, ATEC enters the
new millennium with a technological arsenal that includes Y2K remediation solutions, computer hardware, software, connectivity devices, multimedia
products, data communication via satellite, video conferencing, system integration networking, high speed data transmission, graphic arts, Internet and
Intranet. In addition, the Company has positioned itself for growth in telecommunications, outsourcing of IT professionals, e-commerce, ISP and offshore
software development to meet its clients' technological needs in a cost effective manner.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or
pricing, technological changes, the effect of economic conditions, and other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
Contact:
ATEC Group Inc., Hauppauge
Jim Charles, 516/231-2832
or
Continental Capital & Equity Corp., Longwood, Fla.
Michael Irving, 407-682-2001
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