ZMAX CORP. Announces New Information Technology Contracts Totaling $3.1 Million
New Awards Strengthen IT Consulting Business; Company Also Announces Opening of Two New Midwest Offices
GERMANTOWN, Md.--(BUSINESS WIRE)--Feb. 24, 1999-- ZMAX CORP. (NASDAQ Small Cap: ZMAX - news) announced today that that its wholly owned subsidiary, Eclipse Information Systems, has been awarded information technology contracts with a combined value of approximately $3.1 million.
The new customers span a variety of industries, such as pharmaceuticals, manufacturing and financial services, and include such companies as plumbing materials manufacturer Moen and catalog company Pampered Chef.
Michael C. Higgins, President and Chief Executive Officer of ZMAX, notes, ''With the acquisition of Eclipse Information Systems, ZMAX embarked on a deliberate strategy to diversify into leading-edge niches of information technology consulting. These new contracts, all signed after ZMAX completed its acquisition of Eclipse in December 1998, reflect the strength of its legacy business, particularly in client/server development, as well as the potential growth of both enterprise resource planning (ERP) implementation and E-business services.''
ZMAX also announced the establishment of two new offices in Minneapolis, Minnesota, and Detroit, Michigan. The Company plans to open a number of offices in the United States this year, offering information technology products and services to current and potential customers from selected regional locations.
''Our plan is to capitalize on the reputation of the products and services of both our subsidiaries and to expand through internal growth and acquisitions, creating branch offices throughout the U.S.,'' explains Higgins. ''This way, we can provide strong service to our existing customers, widen the base of potential clients, and offer a growing portfolio of IT consulting services.''
Lorne Richardson, formerly of PriceWaterhouseCoopers, will lead the Minneapolis branch office. Richardson previously was PriceWaterhouseCoopers' practice director for electronic commerce activities in the consumer and industrial systems sectors. In Detroit, Mark Noble has been hired to lead the branch office. Earlier, Noble was manager of new business development for Bowne Internet Solutions.
ZMAX Corp. is an IT consulting and re-engineering company.
Statements made in this press release that are not historical or current facts are ''forward looking statements'' made pursuant to the safe harbor provisions of federal securities laws.
Forward looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.
Such factors include adverse economic conditions, entry of new and strong competitors, inadequate capital, unexpected costs, and failure to capitalize upon access of new clientele.
Specific risks and uncertainties which may affect forward looking statements about the business and prospects include the possibility that a competitor will develop a more comprehensive or less expensive service or solution to ZMAX's services or projects and delays in the market awareness of ZMAX and its project and service solutions.
These factors and others are discussed in the ''Management Discussion and Analysis'' section of ZMAX's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 1997, to which reference should be made.
ZMAX CORP. is quoted on the NASDAQ Small Cap exchange under the symbol of ''ZMAX'' and on the Frankfurt and Berlin Stock Exchanges under the symbol of ''ZMX''
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Contact:
ZMAX CORP.
Investor Communications Co.
800/416-0811 or 800/547-0443
www.iccinfo.com
or
The Poretz Group
Karen Vahouny, 703/506-1778, ext. 224
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