ATLANTA, April 26 /PRNewswire/ -- Preferred Networks, Inc.
(OTC Bulletin Board: PFNT) (PNI), a leading outsourcing services provider to
the wireless industry, today announced that it has reached a definitive
agreement to sell substantially all of the assets of its wholly owned
subsidiary, Preferred Technical Services, Inc. (PTS). Under the terms of the
Agreement, an affiliate of Saratoga Partners, a New York-based merchant bank,
will pay PNI approximately $5 million for PTS in a combination of
approximately $4 million in cash with the balance of the purchase price to be
paid in maintenance services on PNI's paging networks, subject to various
purchase price adjustments.
In announcing the agreement, PNI CEO Mark Dunaway, said, "The sale of PTS
will generate a substantial return on PNI's investment in PTS since we
acquired it in July 1996. This sale will enable PNI to focus on its core
competencies of providing network service solutions to wireless companies and
the development of new network-based service offerings utilizing our
proprietary patent pending switching technology, 'Platform 1(TM).' We are
extremely excited about the position that PNI holds in the marketplace and our
opportunity to take advantage of a strong market for outsourcing of wireless
services. We may consider selling other assets in the future to enable us to
focus more on our core service offerings."
The sale is scheduled to close during the second quarter. However, there
are significant conditions that must be satisfied prior to the closing of this
transaction. Therefore, there can be no assurances that the transaction will
close.
Preferred Networks, Inc., headquartered in metropolitan Atlanta, provides
outsourcing solutions to the wireless industry which allow companies to offer
branded wireless services directly to subscribers, while relying on PNI to
provide high-quality network, technical, and product services. PNI offers its
services through its Access Services Division, a provider of wholesale paging
network services and information services technical support, and through its
wholly owned subsidiaries: Preferred Technical Services, Inc., a provider of
paging network equipment installation, maintenance and engineering services;
and EPS Wireless, Inc., a national provider of paging and cellular product
repair services, sales of new, used and refurbished paging and cellular
products and inventory management services. PNI's address on the World Wide
Web is http://www.pni.net .
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical
facts, including those relating to the competitive position and performance of
the Platform 1(TM) relative to alternative products and its expected
performance in the marketplace are forward-looking statements that are subject
to risks and uncertainties, including those identified in the Company's 1998
Form 10-K, and actual results could differ materially from those anticipated
in the forward-looking statements.
SOURCE Preferred Networks, Inc.
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Related links:
http://www.pni.net
Company News On-Call:
http://www.prnewswire.com/comp/109794.html or fax,
800-758-5804, ext. 109794
CONTACT:
David Sullivan, Vice President of Corporate
Relations of Preferred Networks, Inc., 770-582-3590
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