Poster earlier this morning on another board;
**NEWS** AUTO completes merger w/ Sunteck Transport
STAMFORD, Conn., Dec 7, 2000 (BUSINESS WIRE) -- AutoInfo, Inc. (OTCBB:AUTO)today announced that it has secured new financing totaling $575,000 in the form of ten year 12% Convertible Debentures (the "Debentures") and has consummated the acquisition of Sunteck Transport Co., Inc. ("Sunteck"), in exchange for 10 million shares of AutoInfo Common Stock, pursuant to the Merger Agreement dated June 22, 2000.
As a result, AutoInfo's Chapter 11 Reorganization Plan, conditionally confirmed by the Bankruptcy Court on August 1, 2000, will become effective without further action by the Court.
The $575,000 financing was provided by certain officers, directors and other parties and will be used as working capital to support planned business expansion. The Debentures are convertible into the Common Stock of the Company at the option of the debenture holder at a conversion price of $0.25 per share and are redeemable, at the option of the holder, after three years.
Harry Wachtel, President of Sunteck, will become President and Chief Executive Officer of AutoInfo and William Wunderlich will become Executive Vice President and Chief Financial Officer. In addition, the Board of Directors has been reconstituted to include Harry M. Wachtel (Chairman), Mark Weiss, Thomas Robertson and Peter Einselen.
Sunteck is a non-asset based supply chain logistics company. Its services include ground transportation coast to coast, warehouse services, air freight, rail and ocean freight. Sunteck has developed strategic alliances with major truckload, LTL (less than truckload), air, rail and ocean carriers to react to customers' needs quickly and effectively.
William Wunderlich stated, "the completion of the merger is the successful culmination of our effort to reorganize and restructure AutoInfo and begins the process of building a profitable operating entity which will restore shareholder value."
Harry Wachtel added, "this is truly a new beginning for AutoInfo. Our long term objective is to build a full service supply chain logistics company. We have identified significant opportunities for growth, including new services as well as strategic geographical expansion. I am exited about assuming the position of President and CEO and look forward to the challenge of building a profitable company which will benefit our shareholders, employees and business partners."
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expected or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company, including The Company's ability to implement the Sunteck business plan and sustain profitability. Therefore, there can be no assurance that forward-looking statements will prove to be accurate.
CONTACT: AutoInfo, Stamford
William I. Wunderlich, 203/595-0005
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