MOUNDS VIEW, Minn., Feb. 8 /PRNewswire/ -- Despite facing the challenges
of securing credit union credit union customer agreements, negotiating with
suppliers and creditors, and responding to the requirements of the bankruptcy
court, Liberty Enterprises continues its efforts to acquire the assets of
Cavion Technologies.
As of Thursday afternoon, 80 Cavion customers had signed new contracts
with Liberty, contingent upon Liberty's acquisition of Cavion. The customer
commitments are keys to establishing a foundation of positive cash flow and
break-even operating income. Liberty continues to solicit potential credit
union customers.
"If we are able to secure 10 to 15 more customer commitments in the next
two days (Thursday and Friday), we would make dramatic progress toward meeting
our original financial model requirements, which are positive cash flow and
break-even operating income," said Robert D. Anderson, Liberty president &
chief executive officer.
According to Michael J. Provenzano, Liberty executive vice president for
Internet applications, the company has received "remarkable cooperation" from
all of Cavion's business providers and that Liberty is "close to final terms
with all major suppliers." Last week, Liberty announced it had reached
agreement with two key partners, Convergent Communications Services, Inc., and
Data Sales Company, Inc.
Provenzano said Liberty has also made significant progress in negotiations
with Cavion's key creditors.
Liberty's acquisitions efforts received another boost yesterday when the
U.S. Bankruptcy Court in Denver set a hearing date of Feb. 16 to review
Liberty's letter of intent to purchase Cavion.
Liberty executives declined to speculate when a final acquisition decision
will be announced.
"We are still hopeful, which is why we are extending our efforts," said
Anderson. "Our final decision depends on several factors, ranging from credit
union customer commitment, to creditor approval, to bankruptcy court review."
Liberty, the credit union movement's leading provider of payment systems,
marketing services and technology services, signed a letter of intent to
purchase the assets of the Denver-based credit union technology provider on
Jan. 19. Cavion filed for Chapter 11 bankruptcy protection on Dec. 21, 2000.
About Liberty
Liberty partners with 5,000 credit unions in all 50 states, Guam and
Puerto Rico. Liberty's core product is the check, still consumers' leading
financial transaction vehicle. The company is the credit union movement's
leading provider of payment systems (checks, card services, financial
supplies), marketing services (database marketing, creative services,
outsource marketing, market research) and technology solutions (data
processing, Web-site development and hosting, Internet banking). Liberty is
headquartered in Mounds View, Minn., a suburb of Minneapolis-St. Paul. The
company has also established marketing centers in Los Angeles, St. Louis,
Minneapolis and Hartford, Conn.
About Cavion
Cavion Technologies offers products and services for secure
business-to-business communications and secure Internet financial products and
services designed specifically for the needs of credit unions. The company's
Internet software products include secure Internet access, online
transactional banking, cellular access, online bill payment, and online loan
decision products, along with enabling software for kiosks.
Cavion created a secure, private communications network called CUiNET
(Credit Union interactive Network) exclusively for the credit union industry.
CUiNET provides a secure, high-speed communications platform for the delivery
of services, transactions and information to and from credit unions and
related organizations, such as trade organizations, corporate credit unions
and credit union vendors. The company's headquarters are located at
6466 South Kenton Street, Englewood, CO 80111. Its telephone number is
720-875-1900.
This news release contains forward-looking statements. Cavion uses words
such as "anticipate," "believe," "expect," "future," "may," "will," "should,"
"plan," "projected," "intend" and similar expressions to identify
forward-looking statements. These statements are based on the company's
beliefs and the assumptions it made using information currently available to
it. Because these statements reflect the company's current views concerning
future events, these statements involve risks, uncertainties and assumptions.
The actual results could differ materially from the forward-looking
statements. Some, but not all, of the factors that may cause these
differences are discussed in the risk factors section of the company's
periodic filings under the Securities Act of 1933. In any event, you should
not place undue reliance on these forward-looking statements, which apply only
as of the date of this news release.
For more information, contact Rick Foy, Liberty Public Relations Manager
at 800-607-2435, ext. 2436.
SOURCE Liberty Enterprises
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Related links:
http://www.libertycheck.com
Company News On-Call:
http://www.prnewswire.com/comp/110839.html or fax,
800-758-5804, ext. 110839
CONTACT:
Rick Foy, Liberty Public Relations,
800-607-2435, ext. 2436, Robert D. Anderson, Liberty President &
CEO, 800-607-2435, ext. 2355, or Michael J. Provenzano, Liberty
EVP for Internet Applications, 800-607-2435, ext. 2308
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