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Technology Stocks : CCGI: ComTech Consolidated -- Ignore unavailable to you. Want to Upgrade?

To: DuGen who wrote (214)	12/23/1998 4:15:00 PM
From: Chris Pensinger	Read Replies (1) \| Respond to of 394

News.... biz.yahoo.com Wednesday December 23, 11:30 am Eastern Time Company Press Release SOURCE: ComTech Consolidation Group, Inc. ComTech Consolidation Group, Inc. Announces New Directors and CEO HOUSTON, Dec. 23 /PRNewswire/ -- ComTech Consolidation Group, Inc. (OTC Bulletin Board: CCGI - news) today announced that it has expanded its board of directors from three to six, with four new directors to be added. Newly appointed members included Messrs. William D. Dickerson, Lloyd P. Broussard, Winfred Fields and Jim Thuney, to serve along with existing directors Richard A. Behlmann and Joel B. Flowers. All newly appointed directors (with the exception of Thuney) are managing directors of ComTech operating divisions. Mr. Thuney, who represents the initial ComTech investor group, was named interim Chief Executive Officer and Chairman to replace the company's founder, Mr. Roger R. Stewart who recently passed away from a massive heart attack. Newly appointed CEO, Mr. Thuney stated, ''Speaking for of all us who are new to the Board of Directors of ComTech, we steadfastly remain solely dedicated to maximizing the value of ComTech for the benefit of its shareholders. It was extremely unfortunate that we lost Mr. Stewart at this stage of ComTech's corporate development. Being the company visionary and leader, Stewart had personally negotiated several new acquisitions which were pending at the time of his untimely demise. Naturally, without Stewart's insight and leadership those transactions have now been placed on hold. Being new parties to the mix, we can not expect to develop the same sort of working relationship or expect to close any of those transactions, at least not in the immediate short term future. Management's current mission is to fully utilize what assets ComTech now owns by accelerating its planned spin-off strategy to achieve our common goal, to maximize the market value of ComTech's stock in the shortest time frame possible.'' Thuney went on to state, ''Our immediate mission is to further organize and complete an exempt initial public financing for each of the three divisions as stand alone spin-off entities: The Home Health, Mental Health and Technical divisions, each with funding to further expand into their most lucrative business opportunity currently available to their respective business; to obtain a listing for each respective division as a full reporting publicly traded company, each traded on its own respective merits. As planned, ComTech will remain as majority shareholder in each respective spin-off entity, with the underlying value of its stock based on the public market value of its holdings in each of the three spin-off entities. When the spin-offs are completed, ComTech plans to declare a stock dividend to its shareholders of the stock it retains in the spin-off entities. According to our financial model, which is based on current negotiations with investment bankers and investors respective to funding the spin-offs, the underlying market liquidation value resulting from the spin-offs, should amount to over $2.00 and could possibly amount to as much as $5.00 or more per ComTech share. The time frame to have all this completed is dependent on several factors. Having freshly completed September 30 audited financial statements, we currently feel that the process can be completed in its entirety before the end of the first six months of 1999.'' Thuney also stated, ''In regard to the 1998 forecast, we are expecting to report sales of around $11.5 million with earnings between $.04-$.05 a share, our forecast is based on audited financial results for the nine months ending September 30, 1998, plus preliminary operating results so far for the fourth quarter of 1998. Based on CCGI's current market price it's stock is trading at a price earnings ratio of less than 4.'' Statements regarding financial matters in this press release other than historical facts are ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.