To: Jim Bishop who wrote (51372 ) 6/15/2000 10:57:00 AM From: herry iball Read Replies (1) | Respond to of 150070
LAHA News: Spin Off Mortgage Operation Lahaina Acquisitions to Spin Off Mortgage Operation to Enhance Shareholder Value to Focus Core Business on Mortgage Operations ALPHARETTA, Ga.--(BUSINESS WIRE)--June 15, 2000--As a first step in a strategic plan to optimize shareholder value, Lahaina Acquisitions today announced that it will become solely a real estate development and management company by spinning off its mortgage operation into a separate public company which will be owned by its shareholders. The new company will be named The Accent Group. Each Lahaina shareholder, as of the record date, will receive shares in The Accent Group through a stock dividend. Lahaina's Board of Directors approved the spin off in recognition that the two operations appeal to different market-makers, attract different investment groups and command different price earnings multiples in the market. ``The Board is also acutely aware that management focus is one of the keys to improving productivity in any business and the way to achieve more focus is to narrow the scope of the business,'' said Scott Demerau, Lahaina's CEO. ``Both the mortgage and the real estate platforms are positioned to support explosive future growth and the spin off gives our shareholders two value opportunities essentially for the price of one.'' Demerau also noted that a prospective acquisition candidate for the mortgage business will be more attracted to the individual company that is totally focused on the candidate's business. ``We have removed a key barrier to growth through acquisition and simultaneously opened the door to dynamic new management possibilities for both companies,'' commented Demerau. ``Everyone associated with the Accent spin off is excited about the level of success that can be achieved by both companies as a result of the Board's action.'' Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the `safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Lahaina Acquisitions, Inc. actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in Lahaina Acquisitions, Inc. Annual Report on Form 10-K for the fiscal year ended September 30, 1999 and its Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.