Press Notice: Immediate Release - January 7, 1999
"PACEL Corp. Files suits in connection with Financing and Asset Acquisition of CTM Automated Systems, Inc."
PACEL Corp., NASDAQ, OTC, Bulletin Board, symbol (PLRP), today announced that it has filed two suits as plaintiff in connection with the Teaming Agreement and Asset purchase of CTM Automated Systems, Inc. and the financing for the purchase. PACEL Corp. has filed a civil suit in the U.S. District Court in the Eastern District of VA against Paul Hughes, broker, for failure to pay for a portion of the stock issued as part of the proposed financing for the CTM acquisition and other damages to PACEL related thereto. PACEL Corp. has also filed a civil suit as plaintiff against CTM and its owners alleging misrepresentation and breach of contracts; seeking consequential damages, loss of revenue, and punitive damages. PACEL believes that these issues resulted in a $2-3 million dollar reduction from expected revenues for the fourth quarter of 1998. However, PACEL Corp. does expect, in the long run, that legal resolution of the problems will be beneficial to the overall financial strength of the company.
PACEL Corp. is a software development & systems integration company located in Manassas, VA specializing in providing software products that improve business flow processes (order entry, inventory management, personnel management maintenance, etc). PACEL's Power Smart Self Aware software systems capitalize on the utilization of electronic documents that are involved in a particular process in the day to day operations of any business. PACEL software provides personnel a powerful tool "Visual Writer SystemTM," a Self-AwareTM software that enables them to create their own Interactive electronic documents (NO programming required). PACEL understands that these new electronic documents must fit seamlessly into the existing environment so that paper, legacy data and previous platforms are not left out. Yet the programs must still have a dramatically positive impact on corporate profitability. Therefore, the ability to provide a complete solution including the hardware, and software systems, and integration of those systems with legacy programs is an integral part of the company's long-term strategy.
Safe Harbor Act Disclaimer: This release may contain forward-looking statements that involve risk and uncertainties, including without limitations, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes, the company's dependency on financing third party suppliers and intellectual property rights, and other risks detailed from time to time in the company's federal filings, annual reports, offering memorandums, or prospectus.
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