Zulu-tek Announces Shareholder Approval of 1-for-10 Reverse Stock
Split; Enhanced Services and Zulu-tek Confirm Pending Completion of Transaction
LOS ANGELES, Dec. 22 /PRNewswire/ -- Zulu-tek, Inc. (OTC-Bulletin Board: ZULU - news) announced today that a majority of its shareholders have
consented to a 1-for-10 reverse split of its Common Shares. The effective date will be December 31, 1998.
Zulu's President Keith Montgomery said, ''There has been some confusion regarding the pending transaction between Enhanced Services and Zulu-tek
in the distribution of the Enhanced Common Stock to Zulu shareholders. It is in the best interest of its shareholders to effect the 1-for-10 reverse split at
this time to clarify the Zulu-tek market and equity position.''
As a result of the reverse stock split, when the previously announced Enhanced Services (OTC: ESVS - news) and Zulu-tek transaction is completed,
each share of Enhanced Services stock will be exchanged for one share of Zulu-tek stock and, in the interim, the shares could trade in parity, at the
same ratio.
Enhanced and Zulu-tek also confirmed that they have agreed to extend the closing date to accommodate the Enhanced Stockholders meeting to be
held shortly.
Enhanced and Zulu announced earlier today the acquisition of BrandsForLess.com.
Enhanced Services, its combination with Zulu-tek and its pending acquisitions, represent the convergence under one umbrella of diverse services
focused specifically on the Internet as a communications and transaction medium creating a new specialty in the e-commerce arena. The combined
enterprise is focused on attaining a unique, forerunning position as it answers the full range of business demands that result from a skyrocketing
commercial reliance on the Internet.
Forward-looking statements in this release concerning trends or anticipated operating results are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward- looking statements are not guarantees of future performance and are subject to risks
and uncertainties related to the Company's operations. These risks and uncertainties include, but are not limited to, competitive factors (including the
possibility of increased competition or technological development, competitors and price pressures); legal factors (such as limited protection of the
Company's proprietary technology and changes in government regulation); and the Company's dependence on key personnel and significant
customers.
Website Information:
www.zulumedia.com and www.brandsforless.com
SOURCE: Zulu-tek, Inc.
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