CYKE.008x.01.Going a little on news now.(COMTEX) B: Cyco.net Inc. Exits Online Cigarette Business
B: Cyco.net Inc. Exits Online Cigarette Business
ALBUQUERQUE, N.M., Jul 28, 2003 (BUSINESS WIRE) -- Today Richard Urrea,
president of Cyco.net Inc. (OTCBB:CYKE) announces: As of July 1, Cyco.net Inc.
is no longer in the online cigarette business and has sold its domains and
processing software.
Due to the cost needed to defend the company from various legal claims, the
management felt regardless of who is right, the cost to defend the company would
bankrupt the company. Also, the stigma of tobacco has had an adverse effect on
the company's stock value. The company plans to utilize the $5 million equity
line it has in place to venture into another line of business.
Cyco.net Inc. was founded during the Internet boom with the idea that sooner or
later the investment community would wake up and seek out companies that paid
attention to fundamentals, such as keeping cost in check and responsible
management. The company believes that the advantage to "Internet selling" is the
ability to use computers to do the order processing tasks, eliminating the need
for hundreds of employees. Cyco.net has been implementing this computer ordering
process for 3.5 years, proving its impact on containing cost. For example, the
company is currently at $5 million in annual sales, needing only four employees;
it estimated quadrupling sales before additional employees were needed. The
company feels that it can apply its order processing system to other products
and services of its own, as well as offering its service on a contractual basis.
This release contains statements that constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements
appear in a number of places in this release and include all statements that are
not statements of historical fact regarding the intent, belief or current
expectations of the company, its directors or its officers with respect to,
among other things: (i) the company's financing plans; (ii) trends affecting the
company's financial condition or results of operations; (iii) the company's
growth strategy and operating strategy; and (iv) the declaration and payment of
dividends. The words "may," "would," "will," "expect," "estimate," "anticipate,"
"believe," "intend" and similar expressions and variations thereof are intended
to identify forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, many of which are beyond the company's ability to
control, and that actual results may differ materially from those projected in
the forward-looking statements as a result of various factors.
SOURCE: Cyco.net Inc.
CONTACT: Cyco.net Inc., Albuquerque
Richard Urrea, 505-710-2190
URL: businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2003 Business Wire. All rights reserved.
-0-
KEYWORD: NEW MEXICO
INDUSTRY KEYWORD: E-COMMERCE
INTERNET
RETAIL
FOODS/BEVERAGES
*** end of story *** |
