ECTY - E-City Software Reaches Preliminary Agreement to Enter E-Security Business
Thursday October 30, 9:02 am ET
NEW ORLEANS & SEATTLE--(BUSINESS WIRE)--Oct. 30, 2003--E-City Software, Inc., (OTCBB:ECTY - News) and On Alert Systems, Inc. wholly owned subsidiary of Proxity Digital Networks, Inc., (Pink Sheets:PDNW - News) announced today its tentative decision to enter the growing e-security business with a memorandum of understanding to acquire a process and methodology for providing simple but highly secure, electronic drug prescribing to doctors and pharmacists.
The process and methodology, known under the working title of IDRx(TM), has been developed by Seattle-area based start-up, PKI SOLUTIONS INC., a Nevada Corporation, which is focused on providing practical e-security applications using a form of digital signature technology known as public key infrastructure (PKI).
According to a preliminary memorandum of understanding with PKI Solutions, E-City Software would acquire from PKI Solutions all right, title and interest in the IDRx(TM) project in exchange for restricted common stock of E-City Software issued to the PKI Solutions shareholders prorata, coupled with PKI Solutions receiving a contract for further development, marketing and implementation of the project.
The prospective deal also would call for E-City Software to acquire a second process and methodology from PKI Solutions by assuming all of its rights in a market-ready, tech development project the start-up completed last year for a third party, Canadian company that sought to enter the lucrative but controversial cross-border prescription drug market. The cross-border network management system developed by PKI Solutions has been designed to overcome a number of the safety, reliability and security objections that have been voiced by the U.S. Food and Drug Administration in opposition to the reimportation of U.S.-manufactured prescription drugs from Canada.
"We are pleased to enter the e-security business with the prospect of marketable applications that will resonate with the American public's need for better, safer and more affordable health care," commented Billy Robinson, President and Chief Executive Officer of E-City Software, speaking for his company. Added Robinson, "Our principal investment with this deal would be in the future widespread use of electronic drug prescribing in North America, which we believe can help lower the cost of health care by helping prevent medical fraud, the illegal diversion of prescription drugs, and, perhaps, even the huge number of medical malpractice claims arising from faulty, handwritten and illegible prescriptions. We also believe PKI technology can help solve the electronically transmitted privacy and security aspects of the Health Information Portability and Accountability Act (HIPAA), and, are making immediate plans for marketing IDRx(TM) to the health services industry."
As for PKI Solutions' other, cross-border prescription drug application, E-City Software would have no immediate plans, if the deal closes, for retail marketing or implementation unless and until the U.S. Congress passes and President Bush signs pending legislation that would amend the federal Food, Drug and Cosmetic Act to permit the reimportation of U.S.-manufactured, FDA-approved drugs from Canada at discount prices. "While our principal intent is to invest in IDRx(TM) and PKI Solutions' expertise with PKI technology," stated Billy Robinson, "we cannot overlook the prospect of what we believe has been major grass-roots support from American consumers and federal and state elected officials for discount Canadian drugs. While it is premature for E-City Software to market this innovative cross-border system, we could, with the help of PKI Solutions, provide aggressive moral support for a change in the reimportation law." Prior to any change in U.S. reimportation laws, however, E-City Software would not rule out authorizing PKI Solutions to implement an interim governmental relations plan to call attention to the merits of its system.
If the transaction is completed, PKI Solutions will remain an independent company and continue to operate as a developer and provider of other applications using PKI technology. Speaking for both PKI Solutions, its Chairman and Chief Executive Officer, Patrick M. Reynolds, stated: "We hope to provide our human resources to E-City's newly acquired business plan, including years of experience we have at our disposal in system development, encryption security, marketing, law, regulatory compliance and governmental relations."
The preliminary memorandum of understanding between E-City Software and PKI Solutions is, prior to being final, still subject to due diligence by both companies.
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 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.
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Contact:
E-City Software, Inc./Proxity Digital Networks, Inc.
Billy Robinson, 504/524-5425
Fax: 504/524-5424
www.ecitysoftware.com |
