July 22, 1998 Vintage->IHartcourt Companies Acquires MK Aviation
ARTESIA, Calif.--(BUSINESS WIRE)--July 22, 1998--The Hartcourt Companies
Inc. (NASDAQ/BB:HRCT) today announced that it has signed a Letter of Intent
to acquire 100 percent of outstanding shares of MK Aviation, S.A., a Panama
corporation specializing in aircraft leasing.
Total purchase price is $12 million, payable in cash and stock.
MK is an aircraft leasing and trading company specializing in the leasing of
commercial aircraft to major world-class airlines, such as Boeing 747, 737,
727 and DC-10, as well as engines. MK Aviation was established in 1978 and
does business with major world airlines such as SwissAir, Korean Air, TWA,
American Airlines, VASP Brazil, etc. In 1997, total revenues of MK were
$33,276,429. These revenues resulted in net profits of $1,659,236.
MK Aviation has headquarters in Panama City, Republic of Panama. Shortly
after the completion of the acquisition by The Hartcourt Companies, MK
Aviation plans to open a new office in Los Angeles, which is currently
scheduled on or before August 31, 1998.
M. Kraselnick, chairman and chief executive officer of MK Aviation, and his
management team will remain and will continue to operate the company under
the same MK name. Kraselnick is expected to join the board of directors of
The Hartcourt Companies.
Kraselnick said, ``The air transportation industry has been expanding at a
very fast rate and all airlines have shown record profit during recent
years. By merging with a larger public entity, MK will have better access to
the capital market, through lines of credit and other facilities up to $10
million available through Hartcourt as part of the Letter of Intent. The
additional funding of the $10 million through Hartcourt should enable us to
double our revenue and profit within the next 12 months.''
Dr. Alan Phan, Hartcourt's chairman, stated, ``The acquisition of MK will
add at least $16 million to our equity base and will triple our revenue and
earnings in 1999. It is a major achievement in our strategy of growth by
acquisition. I am very pleased with the talent and experience of the MK
management team and proud to have a quality company like MK joining our
team. The growth of Hartcourt Group during the last two years has been and
will continue to be quite remarkable.''
Management expects the company to continue to grow through acquisitions.
Besides MK, Hartcourt owns ECS, a contract manufacturer of hi-tech
electronic products, generating annual revenues in excess of $16 million,
and Pego Systems, specializing in industrial process and pollution control
equipment, with annual revenues in excess of $8 million. Additional
acquisitions in the same filtration are in the final stage of negotiation
and are expected to be finalized with Letters of Intent by the end of Q3
1998.
Hartcourt's wholly owned subsidiaries primary clients include: AT&T
(NYSE:T - news), Coca-Cola (NYSE:KO - news), Proctor & Gamble (NYSE:PG -
news), Motorola (NYSE:MOT - news), Intel (NASDAQ:INTC - news), 3-Com
(NASDAQ:COMS - news), General Instrument (NYSE:GIC - news), Raytheon
(NYSE:RTN - news), Arco (NYSE:ARC - news), Mobil (NYSE:MOB - news), Micron
Technologies (NYSE:MU - news), TWA (NYSE:TWA - news), and many others.
Certain statements in this news release mat constitute ``forward- looking''
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements involve risks, uncertainties and
other factors which may cause the actual results, performance, or
achievement expressed or implied by such forward-looking statements to
differ.
Contact:
The Hartcourt Companies
Ron Helms, 310/788-2634
www.hartcourt.com
hartcourt@worldnet.att.net
--------------------------------------------------------------------------------
Google Home - Advertise with Us - Search Solutions - Services & Tools - Jobs, Press, & Help |
