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Virtual Technology Corporation Signs Letter of Intent to Acquire Operating Assets of Tech Squared Inc.
MINNEAPOLIS--(BUSINESS WIRE)--Aug. 2, 1999--Virtual Technology Corporation (OTCBB: VTCO) announced that it has signed a letter of intent with Tech Squared Inc. (OTCBB: TSQD) to acquire substantially all of the operating assets of Tech Squared Inc. Tech Squared's 1998 operating revenues were $38.8 million. Tech Squared is a national marketer and distributor of mid- to high-end microcomputer hardware, software and peripherals primarily to businesses in the desktop publishing, graphic arts and pre-press industries, as well as an emerging customer base of internet and intranet site developers. The proposed asset sale to VTC includes Tech Squared's Net Direct, DTP Direct and distribution operations together with various trade and internet domain names, including "netdirect," "dtpdirect,""tech2," "Tech Squared" and "MacUSA." The cash purchase price is estimated at $3.1 million, to be determined based upon the book value of Tech Squared at the time of closing.
Greg Appelhof, VTC's President and Chief Executive Officer, stated, "We believe that Tech Squared's catalog and distribution business is a natural fit with both our virtual-world.com on-line and GTI product distribution operations. We believe that the addition of Tech Squared's quality staff and manufacturer relationships, including Apple Computer, Inc., will position VTC as a leader in the business-to-business e-commerce marketplace. We also believe that Tech Squared's revenues will add significantly to our customer base and bottom line. Our intent is to integrate the Minneapolis operations of Tech Squared with our current VTC operations."
The completion of the transaction is dependent upon satisfactory due diligence, negotiation and execution of a definitive agreement and Tech Squared shareholder approval.
ABOUT VIRTUAL TECHNOLOGY CORPORATION
Minneapolis-based Virtual Technology Corporation (OTCBB:VTCO), founded in 1996, is a publicly traded e-commerce company specializing in computer hardware, software and services. Its primary e-commerce sites include www.virtual-world.com and the Virtual Technology auction site www.vtcoauctions.com. VTC's GTI division (www.graphicstech.com) specializes in wholesale distribution of technology products. More corporate information may be found at vtechco.com.
Statements in this Press Release that are not purely historical are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding VTC's expectations, hopes, beliefs, intentions or strategies regarding the future generally, VTC's growth strategy, future sales and anticipated trends in VTC's business. All forward looking statements included in this Press Release are based on information known to VTC on the date hereof, and VTC assumes no obligation to update any such forward looking statements. It is important to note that actual results could differ materially from those in such forward looking statements as a result of a number of factors, most of which are out of the control of VTC, including, but not limited to, VTC's early stage of development, its lack of profitability and cash flows and competition for the sale of hardware and software products both on and off the internet. There is no assurance that VTC will ultimately acquire the Tech Squared operating assets or that such acquisition, if consummated, will be profitable.
CONTACT: Virtual Technology Corporation
Greg Appelhof, CEO
(612) 915-1122
greg@vamail.com
or
Lanzet, Inc. Public Relations
Contact: Herb Lanzet
(212) 687-0061
lanzet@aol.com
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