Majestic Signs Letter of Intent to Acquire Assets of International Structures
LLC
SAN DIEGO--(BUSINESS WIRE)--March 8, 2000--The Majestic Companies Ltd. (OTCBB:MJXC - news) is pleased to announce that it has signed a Letter of
Intent to acquire the assets and technology of International Structures LLC.
International Structures, based in Turlock, Calif., has developed a unique and proven hybrid building process that blends the time efficiency and cost savings of
factory constructed modular buildings, with the finish, look, and custom design features of site-built permanent structures.
Based on existing purchase orders and those currently in negotiation, Majestic projects bringing in up to $4 million in business in this new arena of construction
between now and the end of the year. With Majestic's present forecast of up to $8 million in traditional modular classroom construction orders at their existing
Modesto, Calif. facility, the addition of the new product line could potentially push Majestic's overall construction orders over the $12 million mark for calendar
2000.
This new building process, which utilizes technological advances in materials, raised concrete sub-flooring and open span construction, is available in pre-approved
modular sections that are factory built and then assembled and finished on site. Due to this pre-approved method, school facility structures that exhibit the look and
integrity of traditional site-built facilities can be designed and built without the lengthy process of architectural and code planning approval.
Administrators will also have the added benefit of using existing ``piggy-back' architectural plans that have been previously approved to avoid putting facility
construction projects out to bid. Due to these many benefits, this new process can reduce lead-time of construction by as much as 50% when compared to standard
site-built construction, while reducing overall cost by as much as 30% to 40%. The versatility of the process allows for an almost unlimited availability of plan layouts,
exterior finish materials and architectural styles that meet or exceed specifications for site-built structures.
The process also lends itself well to the construction of a variety of structures including; cafeterias, gymnasiums, science labs, computer centers, medical facilities,
administration buildings and other assorted commercial buildings.
Francis Zubrowski, Majestic's chief executive officer stated ``We are extremely excited about this new addition to Majestic's existing portfolio of factory built
structures. It will allow our marketing staff to leverage each sales call by offering a more complete solution to school administrators needing to increase school
classroom capacity quickly, as well as administrators that are planning for and building satellite and/or new school systems. We feel that the general trend in the
market is moving toward this type of hybrid construction method and this new process provides the company with a niche product that sets us apart from many of
the existing modular classroom manufacturers in California that offer only standard types of re-locatable classroom structures. Our strategy in the Modular business
has always been to acquire building processes which add real value to our existing platform of modular products. The addition of International Structure's building
technology is the first step towards achieving that goal by increasing the revenue and income base of the company, with the ultimate goal towards maximizing value
for our shareholders.'
Additional information can be obtained by visiting the company's Web sites at: www.themcl.com and www.safe-t-bar.com.
Note: Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule
3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in
this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks
and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those
anticipated in such statements.
Contact:
The Majestic Companies Ltd.
Investor Relations
Clayton Chase, 619/209-6077 |
