HEADSUP! New IPO--Free shares (XTON)
EXECUTONE Information Systems' Preferred Shareholders Unanimously Approve
Proposed eLottery Spin-off
Business Wire - January 26, 1999 06:46
MILFORD, Conn.--(BUSINESS WIRE)--Jan. 26, 1999--EXECUTONE Information
Systems, Inc. (Nasdaq NM:XTON), today announced that it has received approval of
the terms of the proposed spin-off of its eLottery, Inc. subsidiary (formerly known as
Unistar Gaming Corp.) from 100% of its preferred shareholders, thereby eliminating the
need for a proxy solicitation and special shareholder meeting. The Company also
announced that it has filed a revised Form S-1 registration statement with the Securities
and Exchange Commission.
This unanimous approval is expected to accelerate the spin-off process by
approximately thirty to forty-five days. The approved terms eliminate the prospect of a
material dilution in the ownership interest of Executone common shareholders that would
have arisen had the transaction proceeded without the exchange of the Executone
preferred shares for eLottery preferred and common stock.
eLottery provides systems, applications and services to facilitate the electronic sale of
new and existing lottery products worldwide via Internet, Intranet and telephone
networks. The Company believes that the electronic distribution of lottery tickets
through these systems will increase sales for lotteries because they make the purchase of
tickets more easily accessible and because they make use of technology to enhance and
enliven the lottery gaming experience. With its unique ability to offer lotteries its new
Internet and Intranet based lottery products worldwide, the Company believes it is well
positioned to capitalize on the growth in non-traditional lottery sales.
Stanley J. Kabala, Chairman and Chief Executive Officer commented, "We are very
pleased to have received full approval for the spin-off from the preferred shareholders
which will now allow us to proceed with the eLottery separation more rapidly. We have
now filed revised documents with the SEC and, given the simplified procedures we
previously announced, expect to close this transaction this quarter."
Executone Information Systems, Inc. develops, markets and supports voice and data
communications systems. Products and services include telephone systems, voice mail
systems, inbound and outbound call center systems, and specialized healthcare
communications systems. Executone's products and services are sold under the
EXECUTONE, INFOSTAR, IDS, LIFESAVER, and INFOSTAR/ILS brand names.
Executone is on the World Wide Web at executone.com.
This news release contains forward-looking statements. Such statements are subject to
certain factors, which may cause Executone's plans to differ or results to vary from
those expected including the risks associated with the development of new products and
the uncertainty of product acceptance, the competitive nature of the Company's
industry, rapid technological change, legal uncertainties, the Company's dependence on
key personnel, and a variety of risks set forth from time to time in Company filings with
the Securities and Exchange Commission.
CONTACT: EXECUTONE Information Systems, Inc., Milford
Edward W. Stone
Chief Financial Officer (203) 882-6260
or
Lippert/Heilshorn and Associates, New York
John Nesbett/Vince Daniels
(212) 838-3777 |
