"Tuesday April 25, 11:39 am Eastern Time
Company Press Release
ATEC Group Further Clarifies Proposed Purchase of IntelleSale.com
HAUPPAUGE, NY--(BUSINESS WIRE)--April 25, 2000--ATEC Group, Inc. (NASDAQ: ATEC - news), a major system integrator and provider of a full line of information technology products and services, today provided further clarification of its proposed purchase of IntelleSale.com, Inc., a subsidiary of Applied Digital Solutions, Inc. (NASDAQ: ADSX - news), originally announced on April 12, 2000.
Commenting on the proposed transaction, Surinder Rametra, chairman and CEO of ATEC Group, Inc., said, ``The proposed purchase of IntelleSale.com offers substantial benefits for our company and our shareholders. First, IntelleSale.com enjoys a dominant presence in the refurbished computer marketplace, one that is highly profitable and offers considerable growth opportunities. The company has built a solid reputation on purchasing computers at the end of their lease periods, then selling them over the Internet or reselling the hard-to-find spare parts. Certainly, these capabilities provide a natural complement to our Nexar© PC manufacturing division, allowing us to offer both businesses and consumers a broader array of products and services, and enabling us to capture higher sales and profit margins.
``Further, and perhaps even more important, IntelleSale.com's strong Internet-based distribution capabilities, through alliances with leading portals such as C/Net, Ubid, Egghead+Onsale, Amazon.com and others, will considerably enhance our visibility in the e-commerce arena, including our atecone.com Internet Service Provider business. IntelleSale.com also is involved in other IT businesses - such as systems integration, memory and software development - that will further extend our capabilities in these areas as well. Ultimately, we will be better positioned as a large business-to-business and business-to-consumer Internet company.''
Concluded Rametra, ``We believe our stock is currently substantially undervalued in the market, and our proposed combination with IntelleSale.com should only increase its value, thereby benefiting our shareholders.''
Key ATEC Group management would remain with the combined company and assume different roles. The proposed purchase is subject to numerous terms and conditions, including a due diligence review, Hart-Scott-Rodino antitrust approval, a fairness opinion by an independent investment banker and shareholder approval, among others. The transaction is expected to close by the end of the second quarter 2000.
About IntelleSale.com, Inc.
A subsidiary of Applied Digital Solutions, Inc., IntelleSale.com, Inc., is the leading provider of open-box, overstock, off-lease, new and refurbished computer equipment and related products at deeply discounted prices. The company sells products online through www.intellesale.com and other Internet portals, such as C/Net, Amazon.com, Egghead+Onsale and Ubid. In addition, the company sells products through traditional distribution channels, including the IntelleSale.com sales force and advertising via catalogs and other conventional media.
About Applied Digital Solutions, Inc.
Applied Digital Solutions is a leading-edge, single-source provider of e-business solutions. The company differentiates itself in the marketplace by enabling e-business through Computer Telephony Internet Integration (CTII(TM)). With its five-year revenue growth (from 1994 to 1998), Applied Digital Solutions was ranked as the fifth fastest-growing technology company by Deloitte & Touche in its 1999 Technology Fast 500 listing. For more information, visit the company's web site at www.adsx.com. About ATEC Group, Inc.
Based in Hauppauge, New York, ATEC Group, Inc., is a leading system integrator and provider of a full line of information technology products and services. As a one-stop company for the computer needs of businesses, government agencies and educational institutions, ATEC Group offers computer hardware and software, system integration networking, graphic arts, Internet and Intranet. The company is positioned for growth through its capabilities as a PC manufacturer of Nexar technology, in software development and e-commerce. For more information, visit the company's web site at www.atecgroup.com.
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. The Company intends that such forward-looking statements involve risks and uncertainties, and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.
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Contact:
Porter, LeVay & Rose, Inc.
Lori Parks, VP
Sean Leous, VP-Media
Sari Ellen Clement, Investor Relations
(212) 564-4700
or
ATEC Group, Inc.
Jim Charles, CFO
(631) 231-2832
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