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Non-Tech : LDSR - LANDSTAR INC. -- Ignore unavailable to you. Want to Upgrade?

To: Dev who wrote (94)	9/16/2002 8:51:49 PM
From: kauaipi	Respond to of 95

something else from the RB site... KP - NEWS RELEASE on the subsequent events. LANDSTAR INC Symbol LDSR LandStar Inc. Announces Financial Restructuring 2002-09-13 13:12 - News Release LandStar Inc. (BULLETIN BOARD: LDSR) (OTO: LDSR, www.landstarinc.com ) is pleased to report a number of recent developments with respect to the financial organization of the Company. The Company has entered into agreements that restructure shareholder advances to the Company and provide additional working capital. The restructuring converts $5 million of shareholder loans to common share equity at $0.50 per share resulting in the issue of 10 million shares. New equity financing in the current quarter in the amount of $2.5 million will be issued by common shares at $0.25 per share resulting in the issue of an additional 10 million shares. In conjunction with the financing the Shareholder has agreed to guarantee a further $ 800,000 bank loan to be drawn by the Company as required for working capital. In addition, 15 million preferred class C shares issued pursuant to the acquisition of PolyTek Rubber and Recycling, Inc. will be converted to 15 million common shares. These agreements have been executed and the financing has been funded. The Company has also negotiated a debt write off and goodwill reduction in the amount of $5 million. As noted in the June 30, 2002 quarterly filing, this write off eliminates all goodwill resulting from the purchase of PolyTek. In conjunction with settlement of litigation the Company will record a debt reduction of over $750,000 during the current quarter. The Company has negotiated additional debt settlements and conversions of debt to equity in an ongoing effort to improve the financial position of the Company. The Company has continued the reorganization and cost containment within the LandStar Polymer Recovery/PolyTek division. Accounting functions have been decentralized to the plants with a reduction of four positions in accounting staff at the corporate office. The investment made by the Company in information technology and a communications infrastructure facilitated the decentralization. The Company has also reduced the Sales and Marketing staff through attrition. These changes have resulted in a cost reduction for the management of this division in excess of $300,000 per annum. The Company has also significantly reduced corporate overhead by not filling positions vacated by attrition. Several positions that related to the development of the Company's market position and evaluation of business opportunities are not necessary with the business focus that has evolved from this development period. The Company is now advancing into commercial production and marketing of devulcanized rubber. To find out more about Landstar Inc. (OTO: LDSR), visit our website at landstarinc.com , or contact: LandStar, Inc. Investor Relations E-mail: investor@ldsr.com 1-888-285-8355 Web: www.landstarinc.com On behalf of the Board of Directors D.E. Fimrite President My math was correct. I am still curious to hear more specifics about the Arizona problems.