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To: SSP who wrote (13273)	11/4/1999 10:16:00 AM
From: Link Lady	Read Replies (1) \| Respond to of 150070

News out on LAN. Is this latest development a good one? newswire.ca Plaintree Announces Amendment of Targa Group Deal Preferred shareholders commit to conversion at CDN$1.00 per Common share; Entire senior management team to be hired effective November 4 OTTAWA, ON, Nov. 4 /CNW/ - Plaintree Systems Inc. (NASD OTC - BB: LANPF; TSE: LAN), announced today that its agreement with Targa Group has been substantially amended. Plaintree has obtained the commitment of the two holders of its Preferred shares (totaling CDN$16 million) to convert those shares into Common shares at the rate of CDN$1.00 per Common share. Further, Plaintree announced that the entire senior management team of Targa Group will be hired by Plaintree effective Thursday November 4. As planned, Jay Richardson will be resigning as Plaintree's president and CEO, but will remain on the board of directors. David Watson, president of Targa, will become Plaintree's new president and CEO. In other changes to the previously announced transaction: - Targa will provide a CDN$3 million guarantee to Plaintree and its unsecured creditors - The previously announced debenture to be given to the Targa shareholders amounting to CDN$2.8 million will no longer be provided - Targa will not amalgamate with Plaintree, as previously agreed - instead, Plaintree will manage Targa's businesses on a fee for service basis. As previously announced, Targa will acquire 49% of the then outstanding shares of Plaintree. ''This is a tremendous step toward completion of the Targa transaction. The ability of their management team to join us on short notice is the best indication of the deep commitment of the Targa team to the success of this transaction,'' said Jay Richardson. ''The relief from the anticipated $2.8 million debt burden is a major improvement from the standpoint of Plaintree's shareholders, significantly enhancing Plaintree's available net cash flow. As well, the proposed fee for service additional revenue stream will considerably strengthen Plaintree's net revenues.'' The final approval of the agreement remains subject to regulatory approval. David Watson said, ''I couldn't be more pleased at how this transaction is now coming together on a fast track. We look forward to a long future of profitability in Plaintree.'' About Plaintree Systems A publicly held company founded in 1988, Plaintree Systems develops and sells LAN switches, maintaining a reputation for high quality products and technical support. Headquartered in the Ottawa region, Plaintree also maintains offices in the US and Europe. Plaintree is publicly traded in the U.S. on NASDAQ and in Canada on the TSE. For more information, visit Plaintree's website at plaintree.com. %SEDAR: 00001576E -30- For further information: Jay Richardson, President & CEO, Plaintree Systems, Tel: (613) 831-8300, E-mail: jrichardson@plaintree.com; David Watson, President and CEO, Targa Group Inc., Tel: (613) 727-9876, E-mail: targa@netcom.ca; Cathy Browne, High Road Communications, Tel: (613) 236-0909 ext. 302, E-mail: cbrowne@highrd.com