RICHARDSON, Texas, May 25 /PRNewswire/ -- 2001-Piranha, Inc.,
(OTC Bulletin Board: BYTE), announced today that the Company would undergo
sweeping changes that will streamline the organization, reduce operating costs
and eliminate operating debt in an effort to move the Company to
profitability.
The restructuring is a result of an intensive effort to allow Piranha to
generate operating funds through its previously announced spin-off of Zideo,
Inc., the sale of selected subsidiaries and an increased focus on science and
technology sales in its core operation. Piranha will not divest itself of any
of its core science or technology as a result of these actions.
To generate immediate operating funds while significantly reducing
overhead, Piranha will spin off its wholly owned subsidiary, Zideo, Inc., as
announced last April, and immediately initiate the sale of it wholly-owned
subsidiary, Impact Solutions, Inc. Finally, Piranha intends to sell its
licensing rights of Classics Illustrated Comics to an independent third party.
This legacy subsidiary does not figure into Piranha's future plans as a
science solution provider.
"Today's announcement addresses the issues that have been the subject of
shareholder concerns and inquiries," explained Chairman of the Board Edward W.
Sample and Chief Executive Officer Larry E. Greybill in a joint announcement.
"We feel these changes immediately benefit our shareholders, whose patience
has allowed Piranha to lay the foundation for several profitable operations.
Now is the time for those operations to repay Piranha's shareholders while
building cash reserves."
Highlights of today's announcements include:
-- The appointment of Michael T. Churchill to the Piranha, Inc. Board of
Directors.
-- The appointment of Nate McClintock as CEO of Zideo, Inc.
-- The appointment of Mike Steele as CIO of Zideo's wholly owned
subsidiary JJT, Inc. As a result of his new assignment, Mr. Steele
will resign as CIO of Piranha, Inc. and will vacate his position on the
Piranha, Inc. Board of Directors.
-- The appointment of Larry E. Greybill as CEO of Impact Solutions, Inc.
As a result of his new assignment, Mr. Greybill will resign as CEO of
Piranha, Inc. and will vacate his Board position on the Piranha, Inc.
Board of Directors.
"We are focusing on the top priorities that require our immediate
attention," said Sample. "First, and foremost, our inability to file our
annual and quarterly reports in a timely manner clearly reflects poorly upon
the Company. I have asked Mr. Michael T. Churchill to join our Board and
immediately assume the role of Chairman of the Audit Committee of the Board of
Directors. He will oversee the Company's overall financial responsibilities,
including mergers, acquisitions, and funding efforts."
The spin off of Zideo, Inc. and subsidiary sales, said Sample and
Greybill, will significantly reduce the workforce required to maintain Piranha
operations. With marketing and sales as well as product development efforts
centered in the subsidiaries, Piranha's payroll requirements will be reduced
by approximately 40 full-time employees.
Piranha will now focus its efforts entirely on research and development of
its science and related technologies. Impact Solutions will continue to
provide products featuring that science and to include those products in
engineered, company-wide solutions. Zideo will function as a service bureau,
including image scanning services and video encoding for vertical market
segments.
"Piranha will become a streamlined science and technology company," Sample
said. "Piranha will retain all core science that it has acquired over the
past months, including its science acquisition of IBP, Inc. and Comsight
Imaging, Inc. The Company's science and technology will be licensed to Zideo
and Impact Solutions. We will move forward aggressively reducing costs while
significantly growing revenues. With the successful implementation of this
plan, growth should not require future dilution to Piranha shareholders."
Mr. Churchill brings extensive financial experience to the Piranha Board.
He began his business career in 1970 with Arthur Andersen & Co.'s Financial
Services Audit Division in the Dallas/Ft. Worth offices. His clients included
banks, insurance companies and hospitals. He has extensive experience in
various SEC filings. In 1975, Mr. Churchill began a decade of employment in
executive management positions for three Texas banking holding companies,
ranging from $5 to $22 billion in assets, all traded on the New York Stock
Exchange.
In 1986, Mr. Churchill was recruited to run a large Dallas-based savings
and loan in connection with a new management team installed by the Federal
Home Loan Bank. He successfully restructured the loan portfolio and reduced
the thrift's reliance on short-term funding sources, while establishing new
business development, advertising and marketing programs.
Since 1988, Mr. Churchill has been a private Investment Banker based in
Dallas/Ft. Worth. He graduated from the University of Texas in Austin in 1970
with a BBA in Accounting. He did his MBA graduate studies in Economics and
International Finance at Texas Christian University in Fort Worth, Texas and
became a licensed CPA in Texas in 1972.
Additional information is available on the Piranha, Inc. website
http://www.piranha.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
Included in this press release are certain "forward looking" statements
within the meaning of the Securities Act of 1933, as amended. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, actual results may differ materially from those
anticipated in the forward looking statements as a result of certain factors
including sales levels, retention, competition trends, and other market
factors. This announcement does not constitute an offer of any securities for
sale or a solicitation of an offer to buy any securities.
CONTACT: Edward W. Sample, Chairman of the Board of Piranha, Inc.,
972-739-0373, or edsample@piranhabyte.com .
SOURCE Piranha, Inc.
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Related links:
http://www.piranha.com
CONTACT:
Edward W. Sample, Chairman of the Board of
Piranha, Inc., 972-739-0373, or edsample@piranhabyte.com
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