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Non-Tech : Am.United Global, Inc. (AUGI) -- Ignore unavailable to you. Want to Upgrade?

To: trouthead who wrote (1968)	6/19/1998 9:52:00 PM
From: Mike Jafari	Respond to of 2065

freeedgar.com

To: trouthead who wrote (1968)	6/20/1998 2:07:00 AM
From: Michael Paul Langley	Read Replies (1) \| Respond to of 2065

DISCONTINUED OPERATIONS During the Quarter ended April 30, 1998, the Company approved a formal plan to dispose of or close down the remaining operations of the Technology Group of Companies including Exodus Technologies, Connectsoft, Inc., Connectsoft Communications Corp. and InterGlobe Networks, Inc. Although the results of subsidiaries have previously been included in the consolidated financial statements, the subsidiaries were operated as a separate line of business whose products, activities and customers differed from other operations of the Company. Based upon this determination, the results of operations of these subsidiaries have been accounted for as discontinued operations and accordingly, their operating results are segregated in the accompanying statements of operations. *Connectsoft to be tentatively sold to executive telecard for $4.5 million (if in telecard's due diligence they can find value in such an acquisition) which is the indebtedness of Connectsoft to various entities. Therefore AUGI is unloading Connectsoft foe absolutely nothing that will enhance AUGI's shareholder value (at least they will have their indebtedness paid!)Can you believe that Connectsoft in their IPO filing was to sell $24 million in stock and AUGI would still have held a controlling position in the stock (i.e market cap of Connectsoft was projected to be $50 million or so LOL). Looks like Exodus and Interglobe will just close up shop without any assets of value to be sold whatsoever. Interesting that IDF/Techstar's revenues and earnings (deficits) will no longer be accounted for on Augi's consodidated income and balance sheets because of further dilution of IDF stock which puts AUGI's position under 50% of outstanding. Folks all that is left to be accouted for on Quarterly and Annual statements is WPEC. At least they have been profitable (at about a measly 1-2% profit margin)in the past. Therefore, after all the technology writeoffs are finished AUGI will potentially have positive earnings in the upcoming quarters again and probably trade at a P/E of 10($1-2 million net on probably close to 20 million shares). Of course, Management could possibly screw up the low -tech entities too (I wonder what excuse they would use?) Good luck to everyone holding AUGI long (If you've continued hang on this long it might be worth considering averaging done when Augi's under $.75. I personally think that AUGI will not declare bankruptcy in the near future and there losses should subside (Unless shareholder lawsuit is successful and they have to pay out their $6,090,000 in cash and marketables in the settlement)