Wednesday February 25, 12:47 pm Eastern Time
Company Press Release
Xinex Clarifies Position on February 23, 1998 Article Issued by
Canada Stockwatch
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Feb. 25, 1998-- XINEX
NETWORKS(Alberta Stock Exchange:XNX. - news) Xinex Networks Inc. (''Xinex'') wishes to clarify its position on the February 23, 1998 Article issued by Canada Stockwatch. The article states that Mr. Doug
Kind, former President and CEO of Xinex (the''Company''), has nitiated a lawsuit in the British Columbia Supreme Court against the Company, as well as Mr. Roy Leahy, a Director of the Company and the current President and Chief Executive Officer, Mr. Harry Jaako, a Director of the Company, and the Company's Corporate Secretary, Mr. Roger Flowerdew. The article alleges that the defendants took or failed to take actions leading up to, and subsequent to, the Company going public, which allegedly restricted Mr. Kind from being able to sell Xinex shares that he held at that time, and that as a result, he
has suffered damages.
With regards to the above mentioned claims, the Company notes that conditions were imposed on Xinex, and its shareholders, by the Alberta Stock Exchange ( the''ASE''), prior to granting its approval to the
transaction. Mr. Kind, who was acting , at that time, in his executive capacities as CEO and Chairman of the Board of Xinex, was fully involved and knowledgeable of all aspects of the process of taking the
Company public and in the Company's Board of Directors ultimate unanimous approval of the terms and conditions of the transaction. As a condition for approval of the transaction, the Alberta Stock Exchange required that Mr. Kind and two individuals, (co-defendants Leahy and Flowerdew) place their shares in a performance escrow arrangement.
Xinex believes that Mr. Kind's lawsuit is a retaliatory action in response to the July, 1997 lawsuit that the Company commenced against Mr. Kind, his company, and certain other parties, alleging breach of fiduciary duty, breach of contract, amongst other things, which Xinex is currently vigorously pursuing.
The company is confident that the issues raised in the Kind lawsuit will ultimately be decided by the courts in Xinex's favour.
The Vortex(TM) multimedia communications system is an innovative replacement product for a sophisticated telephone system (PBX) and computer network (LAN). Using technology that allows voice,
video and data communication to be transmitted over the same wire, Vortex(TM) provides an integrated
telephone and computer system that has built-in telephone, voice mail, and videoconferencing capability.
Vortex(TM) also functions seamlessly with a Windows(R) NT server to provide high-speed data networking. With Vortex(TM), users can make and receive calls from Windows(R) call manager applications, and control telephone operations like Hold, Conference and Transfer from their PC.
Xinex Networks Inc. is an emerging provider of advanced communications solutions for the global workplace. Xinex develops and delivers innovative, cost-effective technologies and products such as
integrated voice, data, and video communication networks. Xinex employs 95 people in development,
production and sales in its offices in British Columbia, California, and New Jersey. Xinex can be reached
by visiting xinex.com on the World Wide Web, e-mailing-webmaster@xinex.com,or calling
(604) 526-1585.
Contact:
Xinex Networks Inc.
Roy Leahy, 604/526-1585
604/540-5600 (FAX)
xinex.com
emailing-webmaster@xinex.com
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