Thread: One more that might be worth watching tomorrow as a short.
(depends if it pops on the news, float is huge)
<XTON>
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biz.yahoo.com
Monday March 29, 5:51 pm Eastern Time
Company Press Release
Executone Information Systems to Become eLottery
and Divest Core Businesses
MILFORD, Conn.--(BUSINESS WIRE)--March 29, 1999--Executone Information
Systems, Inc. (NASDAQ NM:XTON - news), announced today that it will divest its core
telephony and healthcare businesses and change the name of the Company to eLottery, Inc. At the same time, the Executone
Board announced it had received an offer for those businesses from a group to be lead by Stanley J. Kabala, Chairman and
Chief Executive Officer of Executone, and that it has formed a special committee of the Board, chaired by outside director
Louis Adler, to accomplish that divestiture.
Mr. Kabala commented, ''I accepted the position of CEO because I had great confidence in the core businesses of Executone
Information Systems and the firm belief that separation of those businesses from the business that is now eLottery was a critical
step in creating shareholder value. Today those beliefs are only stronger. The separation has been made both more important
and more difficult by the recognition of the value of the eLottery opportunity at a time when valuations of small public
companies engaged in our core businesses have been under severe pressure. I have a great deal of confidence in the value
propositions of the core businesses of Executone, but recognize the risks inherent in the turn-around we have undertaken.
Through this transaction we will strengthen both eLottery and the core businesses and provide both with the assets and liquidity
to execute their business plans.''
Mr. Kabala continued, ''I look forward to continuing to lead the telephone and healthcare businesses with the excellent
management team we have put in place. I am also excited by the opportunities for our shareholders to participate in the
eCommerce market through eLottery.''
Speaking for the Board of Directors, Louis Adler said, ''We have been exploring various alternatives in addition to the
previously announced proposed transaction for the separation of our wholly owned eLottery Inc. subsidiary from Executone.
During those discussions, management has expressed interest in purchasing the telephony and healthcare businesses. The offer
from management is in the range of $70 million and is subject to a number of conditions including negotiation of a definitive
agreement, financing, the waiver or expiration of a pre-existing right of first offer, and approval of the Executone shareholders.
Our analysis of this transaction is that it creates more value for our shareholders than the spin-off of the eLottery common stock
with its tax consequences for which we had previously filed a registration statement. Accordingly we intend to terminate the
previously filed registration statement.''
The proceeds of any sale will remain in the Company to help it accelerate the achievement of eLottery's business plans. At the
conclusion of the transaction and subject to shareholder approval, Executone Information Systems would be renamed eLottery.
eLottery, Inc. will provide a wide array of products and services to the domestic and international lottery markets. The
Company has developed and operated systems software that enables the electronic distribution of lottery tickets over the
Internet, Intranet and via telephony. The Company believes that the electronic distribution of lottery tickets through these
systems will increase lottery sales 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 lottery operators 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. eLottery, Inc. is on the World Wide Web at elottery.com.
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, Milford
Edward W. Stone
Chief Financial Officer
203/882-6260
or
Lippert/Heilshorn and Associates, New York
Vince Daniels/John Nesbett
212/838-3777 |
