News:
Monday December 7, 4:05 pm Eastern Time
Company Press Release
SOURCE: Pen Interconnect, Inc.
Pen Interconnect Signs Intent to Sell its Pen Technology Division
This Is the Second Divestiture Announced Within the Past Two Months
SALT LAKE CITY, Dec. 7 /PRNewswire/ -- PEN INTERCONNECT (Nasdaq: PENC - news) today announced that it has signed a letter of intent with CTG, Inc., formally known as Cables To Go, for the sale of its custom molded cable operation, Pen Technology. Specific terms of the deal were not disclosed, but the agreement is for the sale of assets and assumption of certain liabilities and is expected to close by the end of the year.
This is the second announced planned sale of a Pen Interconnect unit. On November 5, 1998, the Company announced it has entered into a letter of intent to sell its satellite receiver division, Moto-Sat, to Windemere Corporation.
Commenting on the announcement, Stephen Fryer, President and COO of PEN, stated, ''We recently announced a plan to accelerate revenue growth through acquisitions in our core sector. The sale of both Pen Technology and Moto-Sat are divestitures of units that are currently unprofitable and unrelated to our future plans. This action coincides with our commitment to maximize our operating cashflow and results on a going-forward basis.''
About CTG, Inc.
Founded in Dayton, Ohio in 1984 as Cables to Go, CTG has grown in size and offering, to become a complete connectivity solution provider, CTG operates a small assembly operation in Dayton but produces the majority of their cabling products at their affiliate factory in Dongguan in Mainland China. They serve OEMs and resellers worldwide, with products that include standard computer and network cabling, custom cabling solutions, peripheral sharing, power protection, premise wire solutions, network electronics, and tools and test equipment. CTG's cabling and peripheral sharing products are available through distribution from Ingram Micro, Merisel, Pinacor, and Tech Data, a leading supplier of molded cables and specialty cables in the end user market.
About Pen Interconnect, Inc.
Headquartered in Salt Lake City and with divisions in Irvine, CA and Orem, UT, PEN is a manufacturing services solution provider, offering contract manufacturing EMSI (electronic manufacturing service industry), internal and external custom cable and harness interconnections, custom power supply and battery charger design and manufacturing and mobile satellite positioning equipment for OEMs in the computer, peripheral, telecommunication, instrumentation, medical and testing equipment industries. For a complete on-line investors package, including current research reports on the Company, visit virtalir.com or product data at pen-interconnect.com.
The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filing on Forms 8-K, 10-QSB and 10-KSB.
CONTACT: Stephen Fryer, COO of Pen Interconnect, Inc., 949-261-3118; or Richard Carpenter or Jeff Lamberson of American Financial Communications, Inc., 916-552-6532.
SOURCE: Pen Interconnect, Inc. |
