Wednesday November 11, 10:59 am Eastern Time
Company Press Release
SOURCE: Genisys Reservation Systems, Inc.
Genisys Reservation Systems, Inc. Announces Agreement to Sell Reservation Business
to Management Group
UNION, N.J., Nov. 11 /PRNewswire/ -- Genisys Reservation Systems, Inc. (Nasdaq: GENS - news) today announced an 'Agreement in Principle' to sell the assets of its
computerized reservation system to a company newly formed by a management group lead by Mark A. Kenny, a Genisys founder and Director. When completed, this
transaction will allow Genisys to concentrate its resources and efforts on the continued buildup of its NetCruise internet travel business, acquired in June, 1998.
Genisys will own a minority interest in the new company and will receive royalties on transactions processed by the new company for a period of five years. A minority
interest in the new company will also be owned by the TranspoNet Companies, Inc., a leading developer and owner of software technology for the ground transportation
industry. Genisys and TranspoNet will provide limited working capital to the new company.
''We have been exploring a number of ways to more fully and quickly develop our NetCruise internet travel business, while maintaining an interest in the limousine
reservation business, with a significant reduction in the resources Genisys had to commit to that operation,'' said Larry Burk, President and CEO of Genisys. ''We believe
that the NetCruise internet travel business, which is not compatible with the limousine reservation business, provides our shareholders with a potential opportunity for a
greater return.''
The new entity will include the officers of Prosoft, Inc., Thomas Gregory and Paul Murray, who originally developed the proprietary software for the reservation system.
''We are pleased that the reservation system development and customer support team remain virtually intact, thereby allowing us to continue our progress in automating the
car and limousine reservation industry,'' said Mark Kenny, who will be President of the new entity.
In July, Genisys announced that its newly acquired NetCruise subsidiary would launch an aggressive marketing campaign inviting customers to become NetCruise Travel
Consultants. An attractive package, including a CD-ROM library of video destinations, marketing kit, and full service support from on-line travel agents, will be marketed to
the consumer through a combination of direct response, TV, print, radio and web-based advertising. NetCruise.com a travel web site designed to support outside travel
consultants, will be launched in mid December 1998.
This press release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's business
strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed
in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company,
may cause the Company's actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking
statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide
public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events.
SOURCE: Genisys Reservation Systems, Inc. |
