(PR NEWSWIRE) CellStar Completes Sale of Poland Operations
CARROLLTON, Texas, Aug. 16 /PRNewswire/ --
CellStar Corporation (Nasdaq: CLST), a global, value-added wireless logistics
services leader, today announced it has completed the sale of its wholly-owned
subsidiary in Poland to Phone House Polska, a subsidiary of the United
Kingdom-based The Carphone Warehouse Group PLC.
Late last year, CellStar announced it would sell its retail operations in
Poland due to the limited opportunities for growth in the local distribution
business.
"The sale is one of several recent actions the Company has taken to focus
its resources on its more profitable, lower-risk, growth businesses," said
Dale H. Allardyce, CellStar's President and Chief Operating Officer. "Growth
opportunities in the wireless industry are excellent, and CellStar intends to
pursue those opportunities that add value to our customers in the areas of
wireless product distribution and value-added services worldwide."
"We have always had an excellent relationship with Carphone Warehouse, and
I am delighted that we have been able to conclude this sale to the mutual
satisfaction of both parties," said Keith Curran, president of CellStar's
Europe Region. CellStar expects to record a small gain from the sale in its
results for the third quarter ending August 31, 2000.
The Carphone Warehouse Group PLC (CPW) was founded in 1989 and has
experienced rapid growth in the 1990's under the leadership of Charles
Dunstone and David Ross. The Group recently floated on the London Stock
Exchange, and based on the issue price, the Group is valued at approximately
$2.5 billion.
CellStar Corporation is a leading global provider of distribution and
value-added logistics services to the wireless communications industry, with
operations in Asia-Pacific, Latin America, Europe and North America. CellStar
facilitates the effective and efficient distribution of handsets, related
accessories and other wireless products from leading manufacturers to network
operators, agents, resellers, dealers and retailers. In many of its markets,
CellStar provides activation services that generate new subscribers for its
wireless carrier customers. For the year ended November 30, 1999, the Company
generated revenues of $2.3 billion. Additional information about CellStar may
be found on its web site at www.cellstar.com.
This news release contains forward-looking statements, as defined in the
Private Securities Litigation Reform Act of 1995. A variety of risk factors,
including changes in foreign laws, regulations and tariffs, new technologies,
system implementation difficulties, competition, handset shortages and other
risk factors, are discussed in the Company's Annual Report on Form 10-K and
most recent Quarterly Report on Form 10-Q, which are on file with the SEC.
Any combination of these risk factors could cause CellStar's actual results to
vary materially from anticipated results or other expectations expressed in
the Company's forward-looking statements.
SOURCE CellStar Corporation
-0- 08/16/2000
/CONTACT: Austin P. Young of CellStar Corporation, 972-466-5031; or Bob
Schwaller, General, 972-830-2295, or Kristine Walczak, Analysts, 312-640-6723,
or Maxine Levy, Media, 972-830-2123 all of Financial Relations Board, for
CellStar Corporation; or press office of The Carphone Warehouse Group PLC, in
the United Kingdom, 44-0845-604-1207/
/Web site: cellstar.com /
(CLST)
CO: CellStar Corporation; Phone House Polska; Carphone Warehouse Group PLC
ST: Texas, Poland
IN: TLS
SU: TNM
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