JAWSNEWSRELEASE
JAWS Technologies Acquires Betach Systems Inc.
Acquisition supports strategic growth,
leadership in $7.1 billion information security market
Toronto, ON, August 22, 2000 -- JAWS Technologies Inc. (JAWZ: NASDAQ),
("JAWS"), a leading provider of secure information management solutions,
today announced the acquisition of Betach Systems Inc. ("Betach") and
Betach Advanced Solutions Inc. ("Betach Solutions") to further strengthen
the JAWS' position in the US $7.1 billion information security market.
Betach and Betach Solutions are privately held full-service e-business
solutions providers with expertise in three key areas: security and
networking, e-commerce solutions, and knowledge management solutions. The
terms of the purchase agreement call for JAWS to issue approximately 1.1
million common shares and 400,000 warrants to shareholders of Betach and
Betach Solutions as consideration for the purchase. Warrants are
exercisable for a period of five (5) years at US$5.07 per share. Total
consideration is subject to Betach and Betach Solutions achieving
performance targets of US$4 million in revenue for the division over the
next 12 months.
"The Betach acquisition, together with the purchases of 4COMM.COM Inc. and
General Network Solutions Inc. announced last week, are part of the
aggressive growth strategy JAWS is pursuing to strengthen our position as a
worldwide leader in end-to-end information and network security solutions,"
said Robert Kubbernus, President and CEO of JAWS. "These acquisitions
deliver key security specialists, new security products and services, new
markets with built-in clients and an increased capacity to serve new and
existing clients around the globe. This will give JAWS a strong
competitive advantage in a market expected to grow from US $7.1 billion to
$17 billion by 2003 according to Bear Sterns and Aberdeen Group."
Lawrence Gordey, Betach co-founder and Managing Partner, Business
Development and Strategic Alliances, noted, "the relationship with JAWS
will allow us to dramatically expand our service horizons and offer clients
a complete range of security and e-business solutions. We're excited by
the prospects of being part of a company with the critical mass of talented
people, services and products necessary for true information and security
solutions industry leadership. Our ability to offer our Fortune 1000 client
base a broader suite of end to end information security and e-business
solutions has been exponentially enhanced."
Kubbernus added, "During our discussions with Betach, it became evident
that there were considerable synergies between the two organizations. We
saw that as one company, under the JAWS banner, we could further enhance
our respective partnerships with companies like Telus and Broadvision."
Mr. John Seliga, AVP of Telus Advanced Communications, e-Business Solutions
commented, "We were pleased to learn of the JAWS acquisition of Betach and
Betach Solutions. Based on some of our current ventures and proposed
projects with JAWS, we see this addition to the JAWS offering as a dynamic
accelerator to our respective business initiatives."
About Betach Systems:
Founded in 1998, Betach focuses its business on medium to large-sized
organizations that have a desire to utilize the Internet tools of today and
tomorrow to solve their business problems in a secure manner. The
explosion of the Internet has driven the creation of specialized
development tools, network infrastructure, and security products and
services. By automating existing business processes using Internet
technologies, organizations can eliminate redundancies, increase
productivity and lower the cost of doing business, making the Internet the
new critical channel and tool to maintain the
competitive edge in business. Betach has also taken a leadership role in
the wireless security market with Nokia as the first Nokia WAP Development
Partner in Western North America. Betach has grown from four founding
partners to include over 50 staff and consultants with offices in Toronto,
Vancouver, Calgary and Edmonton. Betach reports unaudited revenue of over
US $2 million for the last 9 months ending June 30, 2000 with a back log in
excess of its total 1999 revenue, and an expected growth rate in excess of
200% before any reliance on the JAWS synergies.
About JAWS Technologies: "Information is Power. Protect It."
JAWS Technologies is a leader in secure information management solutions
including security software products, consulting services and secure
Internet and remote data storage services for key client groups including
governments, cyber crime and forensics, healthcare, financial services,
e-commerce, and telecom suppliers such as Application Service Providers
(ASP) and Information Service Providers (ISP). JAWS' International
headquarters are located in Toronto, Canada and its western business unit
is in Calgary, Canada, with offices in Edmonton, Boston, New Jersey,
Chicago and California. JAWS has approximately 300 employees, 50 strategic
partners and approximately 150 corporate clients. JAWS Technologies is
traded on the NASDAQ National Markets (JAWZ: NASDAQ). For more
information, visit the company's website at www.jawstech.com or call
1-888-301-5297.
Forward-looking statements and comments in this press release are made
pursuant to safe harbour provisions of the Securities Exchange Act of 1934.
Such statements relating to, among other things, the prospects for the
Company to complete the transaction and enhance operating results, are
necessarily subject to risks and uncertainties, some of which are
significant in scope and nature. These risks may be further discussed in
periodic reports and registration statements to be filed by the Company
from time to time with the Securities and Exchange Commission in the
future.
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For more information, please contact:
Media: Investors:
Leanne Bucaro Nino Plava
JAWS Technologies Inc. JAWS Technologies Inc.
Toll Free: 1-888-301-5297 or Toll Free: 1.888.301.5297
416.727.3306 investors@jawstech.com
lbucaro@jawstech.com |
