Kim this is the CLWK news that was announced it the open house Plus there is suppose to be even more. I am trying to see who was at the open house last night.
ClearWorks.net Signs Letter of Intent to Acquire Link-Two Communications,
Two-way Wireless Company With $100-Plus Million in Wireless Assets
Business Editors/Technology Writers
HOUSTON--(BUSINESS WIRE)--June 16, 1999--
ClearWorks.net to Become Nation's First Provider With Nationwide
Two-way Paging Network Utilizing Wideband Spread
Spectrum Technology
ClearWorks.net (OTC BB:CLWK), which is pioneering the concept of
Bundled Digital Services(SM) in residential communities,
multiple-dwelling units and office buildings, has signed a letter of
intent to acquire Link-Two Communications Inc., a Houston-based
two-way wireless telecommunications company. Link-Two is one of the
few of the nation's two-way paging companies with FCC licenses to
operate in all 50 states.
Terms of the transaction were not disclosed. However, the
acquisition is a pure stock-for-stock transaction in which Link-Two
shareholders will become minority stockholders in ClearWorks.net. The
proposed acquisition will be submitted to the Link-Two stockholders
for approval within the next few days.
"This is a major acquisition for ClearWorks.net," says Michael T.
McClere, CEO of ClearWorks.net. "Five independent business evaluations
of Link-Two's wireless assets have established an average valuation of
the company in the $100 million range, with the highest valuation
being $200-plus million. Just as important as Link-Two's rich asset
base is the fact that ClearWorks.net is acquiring a two-way paging
network with a coast-to-coast presence. As a result, one of the stated
goals of ClearWorks.net -- becoming a nationwide telecommunications
company -- is much closer to becoming a reality," states McClere.
Link-Two, founded in June 1996, derives its strong asset base
from two primary areas: its operational two-way paging network in
Texas and the fact that it is the only two-way paging company with FCC
licenses to operate in all 50 states utilizing wideband spread
spectrum technology for its two-way return link.
"The FCC is no longer granting any new 931 MHz licenses, except
through the auction process. In other words, our competition will be
somewhat restricted. Any provider wanting to establish a nationwide
presence must now spend a considerable amount of capital to purchase
existing licenses from a variety of different owners, or buy them at
auction," explains McClere.
This leads ClearWorks.net to believe that, with the new spread
spectrum technology being provided for Link-Two by Eagle Wireless
International (OTC BB:ELGW), it will have a competitive advantage over
traditional service providers, such as Mtel, AT&T Wireless Messaging
(NYSE:T), AirTouch Communications (NYSE:ATI), Arch Communications
Group (Nasdaq:APGR), Metrocall (Nasdaq:MCLL), PageNet (Nasdaq:PAGE)
and PageMart Wireless (Nasdaq:PMWI).
According to A.L. Clifford, chairman of the board and CEO of
Link-Two, "Because of Link-Two's unique technology and its nationwide
reach, it can attract new revenue markets for two-way wireless
messaging that current paging companies can't service. Our markets
include utility meter reading, home and commercial security devices,
transportation systems such as auto locators and fleet tracking,
agricultural applications such as remote irrigation control,
industrial automation and monitoring two-way e-mail and Internet
services. It is estimated that the annual market potential in the
United States is $4.2 billion."
"Home security based on two-way messaging is by itself a huge
market. If an intruder breaks into your home and cuts your phone line,
your alarm company probably won't be aware that your home is being
burglarized. But if the alarm is linked to a wireless system -- which
can't be cut -- the alarm will be sounded immediately and the
authorities will be notified," Clifford describes.
Link-Two is thus an ideal partner for large utility companies
such as Reliant Energy (NYSE:REI), Houston Industries (NYSE:HXT) and
Southern Company (NYSE:SO), as well as home-security service companies
such as Ranger American and Brink's Home Security (NYSE:PZB), and
companies providing home-security systems, such as Ademco, a
subsidiary of Pittway Corporation (NYSE:PRY) and Honeywell Inc.
(NYSE:HON).
"Link-Two is a great strategic fit for us. We gain an immediate
coast-to-coast presence with a unique, cutting-edge technology service
that complements the Bundled Digital Services(SM) our ClearWorks
Residential Services Inc. subsidiary is providing. Link-Two's service
offerings will immediately be tied into our Bundled Digital
Services(SM) package," states McClere. Bundled Digital Services(SM) is
a registered service mark in all 50 states.
According to McClere, the acquisition makes perfect sense for
both companies' shareholders. As a privately held company, it would
have been difficult for Link-Two to attract the capital that it would
have required for rapid expansion. And, for ClearWorks.net, the
Link-Two acquisition makes sense because it is able to buy a
considerable asset base at a fraction of its market value. "We have
estimated that it could cost tens of millions of dollars to shop
around and purchase the required two-way licenses on the open market,
if they were even available for sale," McClere points out.
Certain statements in this release are forward looking. Although
ClearWorks.net (the Company) and Link-Two believe their expectations
are based on reasonable assumptions within the bounds of their
knowledge of their business and operations, there can be no assurance
that actual results will not differ materially from their
expectations. Merger Communications (Merger) is a media relations firm
employed by the Company. The statements and opinions presented
represent the views of the Company and Link-Two, not Merger, as the
release is based on information provided by the Company and Link-Two.
Merger and the Company believe that all information in this release
has been obtained from sources considered reliable, but cannot
guarantee that the statements presented herein are accurate or
complete. Merger's compensation for its media relations services
consists of a monthly retainer and an options plan. Merger can have a
long position in the securities of the companies in which it publishes
information for media use, and Merger may be buying or selling
securities in the course of its regular business.
--30--MJB/ho*
CONTACT: Merger Communications, Houston
David Drake or Patricia Cunningham, 713/267-2328
Email: daviddrake@earthlink.net
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