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Friday February 26, 11:51 am Eastern Time
Company Press Release
PCNet Founder/CEO Soto Sees 'Synergy in
Combined Expertise' in Proposed Acquisition
by Carnegie International Corporation
BALTIMORE--(BUSINESS WIRE)--Feb. 26, 1999--Camilo Soto, founder and
CEO of PCNet, Inc., of Trumbull, Conn., said today he is very excited about the
proposed acquisition of his company by Carnegie International Corporation (OTC BB: CAGI) announced
yesterday.
Carnegie said a Letter of Intent has been signed to acquire PCNet, Inc (www.pcnet-inc.com),a leading
value-added reseller specializing in Electronic Commerce (E-Commerce) and Electronic Digital Interchange
(EDI), PC hardware, software, network integration and support services. A holding company specializing in
Internet, telephony and telecommunications products, services and distribution, including E-Commerce and
EDI, Carnegie (www.carnegieint.com) is based in suburban Baltimore.
Soto said he ''is pleased to be joining companies whose technological capabilities will enhance the current
product and service offerings to our existing customers, as well as to what will be our combined customer base.
We look forward to the synergy that will result from such combined expertise,'' he said, ''which I believe will
bring tremendous growth opportunities for all involved.''
''This venture,'' he added, ''will allow us to integrate our robust E-Commerce capabilities with Internet
technologies, and provide our customers with a one-stop shop for emerging technology solutions.''
Carnegie Chairman and COO E. David Gable, Carnegie said Soto has agreed to become a member of
Carnegie's Board of Directors upon completion of the acquisition.
Former D&B Company Now an E-Commerce and EDI Pioneer and Leader
PCNet was established in 1985 as a division of Dun & Bradstreet Corporation (NYSE: DNB - news) to provide
IT products and services to its operating units and to other Fortune 1000 companies. In December 1993, the
company was privately purchased by Soto, and under his guidance it helped pioneer and become a leader in
E-Commerce and EDI, leveraging technical expertise, industry knowledge, innovative corporate purchase
programs, and highly competitive pricing.
The Trumbull company also continues to provide products and services to D&B and other Fortune 1000 firms,
and is a one-stop source for quality technical support nationwide, supporting PCs and software from 1,400-plus
manufacturers and publishers, with certified experts on Microsoft, Novell, Lotus, Compaq, IBM, Hewlett
Packard, Cisco Systems. Its support services client roster includes The Federal Reserve Bank of New York,
R.H. Donnelley, Pfizer, Duracell, SNET, the United Nations, Yale Haven Hospital, Motorola, and ESPN. Further
leveraging PCNet's client/server technology and familiarity with E-Commerce, in 1992 Soto launched ViewTek,
which specializes in Inter/Intranet solutions design and implementation.
PCNet has been ranked by VARBusiness Magazine as the 226th largest value-added reseller in the U.S., and
received the Supplier Award for Excellence from Motorola in 1997.
Lowell Farkas, president and CEO of Carnegie, said the agreement is subject to normal due diligence by both
parties and that a definitive agreement could be signed by the end of March. Upon acquisition, he said, PCNet
will become a wholly-owned subsidiary of Carnegie International, ''remaining in Trumbull, management and
staff intact, where we plan for the company to continue to flourish and grow.''
Farkas said Carnegie forecasts revenues for PCNet in excess of $50 million for fiscal 1999, with a pre-tax
profit approaching $3 million. He said that with the acquisition of PCNet, and with other acquisitions pending
including the scheduled March closing on Paramount International Telecommunications of Vista, California,
Carnegie's revenues could exceed $100 million in 1999.
Carnegie Set to Report Audited Earnings
Farkas also said Carnegie will announce its audited year-end financials in compliance with SEC regulations by
March 31. Carnegie became a fully-reporting company under the Securities and Exchange Commission Act of
1934 in late December.
Carnegie International Corporation is a holding company specializing in Internet, telephony and
telecommunications products, services and distribution, including E-Commerce and EDI. Its MAVIS(tm)
(Multi-Language Automated Voice Independent System) is a breakthrough in speech recognition-driven
automated attendant/ voice mail systems, using proprietary IVR (interactive voice response) software to
recognize/respond to callers. The entirely voice-driven MAVIS interface is available in English and all foreign
languages supported through licensed Lernout & Hauspie (NASDAQ: LHSPF - news) software, and supports
Dialogic (NASDAQ: DLGC - news) CPU telephony cards. Carnegie's primary wholly-owned subsidiaries
include: RomNet Support Services, Inc., an Internet, e-business and technical support services company Profit
Through Telecommunications (Europe) Ltd. (PTT), a telecommunications software company providing business
solutions utilizing proprietary speech recognition, touch tone and bar code responses to send and/or receive
information; ACC Telecom of Columbia, Maryland, a leading reseller of equipment and business telephone
systems from Comdial (NASDAQ: CMDL - news), SONY® (NYSE: SNE - news), and Sprint® (NYSE: FON -
news), and Voice Quest, Inc., of Sarasota, Florida, a developer and provider of speech recognition and voice
mail technologies and products. On December 28, 1998, Carnegie became a fully reporting company under the
Securities and Exchange Act of 1934.
Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward-looking statements.
Certain information included in this Press Release (as well as information in oral statements or other written
statements made or to be made by Carnegie International Corporation) contain statements that are
forward-looking, such as statements relating to the future anticipated direction of the telecommunications
industry, plans for future expansion, various business development activities, planned capital expenditures,
future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information
involves important risks and uncertainties that could significantly affect anticipated results in the future, and
accordingly, such results may differ from those expressed in any forward-looking statements made by or on
behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to,
those relating to development and expansion activities, dependence on existing management, financing
activities, domestic and global economic conditions, change in Federal or state laws, and market competition
factors.
MAVIS is a trademark of Carnegie International Corporation. Other trademarks are properties of their
respective owners.
Contact:
Lowell Farkas
Carnegie International Corporation
+(410) 785-7400
lfarkas@carnegieint.com
or
David A. Kaminer
The Kaminer Group
+(914) 684-1934
dkaminer@kamgrp.com
More Quotes
and News:
Carnegie International Corp (Colorado) (OTC BB:CAGI - news)
Comdial Corp (Nasdaq:CMDL - news)
Dialogic Corp (Nasdaq:DLGC - news)
Dun and Bradstreet Corp (NYSE:DNB - news)
Lernout En Hauspie Speech Products (Nasdaq:LHSPF - news)
Sony Corp (NYSE:SNE - news)
Sprint Corp (NYSE:FON - news)
Related News Categories: computers, internet, ISDEX, retail, software, telecom
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