LWEI here's why........news out now....LOL I was thrilled to take .82 for a few earlier today.
OKLAHOMA CITY--(BUSINESS WIRE)--March 28, 2000--Lone Wolf Energy
Inc. (Symbol: LWEI) announced it has signed a letter of intent to
acquire Zenex Communications, Inc., a privately held business.
Under the terms of the agreement, which is an all-stock
transaction, Zenex will become an independent business unit of Lone
Wolf's. The acquisition is the initial deal brought to Lone Wolf by
its recently appointed business development firm, Ensynq, Inc.
A switch-based provider, Zenex is tariffed as an interexchange
carrier in 48 states and has worldwide terminating access. Zenex was
incorporated in 1994 to take advantage of great opportunities in the
rapidly growing telecommunications industry. In 1996, less than three
years after it was incorporated, Metro 50 magazine named Zenex as the
fastest-growing privately held company headquartered in Oklahoma City.
It was named to be one of the five fastest-growing companies in 1997.
In an important strategic move in 1998, Zenex accepted an offer from a
major regional carrier and it advantageously sold its long distance
business, which enabled it to reposition itself to be focused in
high-profit targeted niches where Zenex has preemptive technologies.
Early in 1999, a private investor, Ricky Naylor, purchased Zenex.
At that time, the company was in a rebuilding process following the
sale of its long distance business. "There were other companies
interested in purchasing Zenex for the tariffs alone. My interest in
buying it was based on its great reputation and its great promise.
Other reasons for my purchase were the strong assets of the company --
tangible and intangible -- including the tariffs, switching platform,
and proprietary software," said Mr. Naylor. "Zenex has proven to be a
good investment, and is now in the right place to perform well for
Lone Wolf. When approached about selling Zenex to Lone Wolf to enhance
its communications-based growth plan, I saw the wisdom in this
strategy." Mr. Naylor, due to the acquisition, will become a large
shareholder of Lone Wolf stock.
As proof of the wisdom of the repositioning move, thus far this
year Zenex has experienced a strong increase in revenues compared to
the same time period last year. Building on the solid foundation
established in 1999, Zenex in the first-quarter 2000 has revenues in
excess of $1,000,000, with a positive pre-tax cash flow in excess of
$250,000.
"Not only does Zenex have a strong and growing cash flow, which
will be central to Lone Wolf's calculated growth, it brings
sophisticated technology-based communications synergies to support our
acquisitions of additional Internet and telecommunications-based
companies," said Marc W. Newman, Lone Wolf's president. "The Zenex
transaction is on strategy with Lone Wolf's newly repositioned
business model, which identifies growth through technology-based
acquisitions."
"Zenex has special strengths as an innovative technology leader,
which has enabled it to supply custom-developed interactive
communications innovations. Zenex has built one of the most stable,
proven IVR (Interactive Voice Response) platforms in the industry,
which is feature rich and is scalable with tremendous capacity.
Zenex's creative R&D expertise in developing custom Internet and voice
application services will enable our business units to have a fluid,
highly effective communications network that will be critical to their
growth," noted Newman.
"Zenex actively creates important customer-centered, interactive
telephony-based products in collaborative efforts with our customers,
and our reaction time is eminently faster than that found in the
industry giants," says Brian Gustas, Zenex's president, who has more
than 14 years of communications industry senior management experience.
"We're proud of the fact that our strong entrepreneurial culture has
allowed Zenex to obtain contracts and relationships that were
originally perceived by the clients in question to require the
involvement of one of the large telecom companies."
Zenex has worked with a wide range of Fortune 500 companies,
major professional sports teams and nationally recognized
cause-related organizations. The same preemptive IVR capabilities that
have been utilized by Zenex's major advertising-oriented clients now
offer creative messaging options for Lone Wolf business units.
Unlike most of Zenex's competitors, it can easily and
inexpensively change voice prompt messages and features. Most
competitive platforms use canned software. When Zenex wants to create
custom IVR programs to meet clients' marketing objectives, it quickly
can -- because it has the knowledge, as well as ownership of the
technology and software.
Forward-Looking Statements
Statements about the Company's future expectations, including
future revenues, earnings and transactions, as well as all other
statements in the press release other than historical facts are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The Company intends that
such forward-looking statements be subject to the safe harbors created
thereby. Since these statements involve risks and uncertainties and
are subject to change at any time, the Company's actual results and
other corporate developments could differ materially from that which
has been anticipated in such statements.
--30--SAM/dx*
CONTACT: Lone Wolf Energy Inc., Oklahoma City
Marc Newman, President, 801/352-7205
KEYWORD: OKLAHOMA
INDUSTRY KEYWORD: MERGERS/ACQ ENERGY OIL/GAS TELECOMMUNICATIONS
SOFTWARE INTERNET E-COMMERCE
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