Applied Digital Solutions Provides Additional Details About the Benefits of the Proposed Sale of Intellesale.com to ATEC Group.Business Editors/High Tech Writers PALM BEACH, Fla.--(BUSINESS WIRE)--April 13, 2000 Applied Digital Chairman describes the proposed transaction as a "clear win" for Applied Digital shareholders Applied Digital Solutions, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ) today provided additional details about the benefits of the proposed sale of its IntelleSale.com subsidiary to ATEC ATEC Army Test and Evaluation Command (US Army; formerly OPTEC, Operational Test & Evaluation Command) ATEC Australian Tourism Export Council ATEC Advanced Technologies (Hamburg, Germany) Group, Inc. (NASDAQ: ATEC). The proposed transaction was first announced in a press release issued by the company on April 12, 2000. Commenting on the proposed transaction, Richard J. Sullivan, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Applied Digital Solutions, called the proposed transaction a "clear win" for shareholders of Applied Digital stock. "This transaction brings tremendous value to Applied Digital shareholders in a number of ways. The first has to do with the enormous synergies that will be created by combining these two companies. ATEC brings to IntelleSale a strong service infrastructure and an established customer base that will allow IntelleSale to continue its strong growth rate well into the future. Secondly, because we retain 70% ownership of the combined, substantially larger company, we will be adding approximately $80 million in revenues to ADS' top line - based on ATEC's recent filings with the SEC - together with ATEC's strong balance sheet. Thirdly, while the combined IntelleSale/ATEC is a public company and therefore will have access to the public markets, our intentions for the combined company remain the same - to grow IntelleSale and ultimately monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. our investment in IntelleSale." "Keep in mind," Sullivan continued, "that all of this was done without issuing any additional ADS shares. We believe that all of this bodes well for the success of the combined entity and for the shareholders of Applied Digital." The proposed sale of IntelleSale.com - valued at approximately $375 million, representing $16 per IntelleSale share- is expected to close by the end of the second quarter of 2000. For additional information about the transaction, please visit www.ADSX.com . About IntelleSale.com, Inc. A subsidiary of Applied Digital Solutions, Inc., IntelleSale.com, Inc., is the leading provider of open-box, overstock o·ver·stock tr.v. o·ver·stocked, o·ver·stock·ing, o·ver·stocks To stock more of (something) than necessary or desirable. n. An excessive supply. Verb 1. , off-lease, new and refurbished computer equipment and related products at deeply discounted prices. The company sells products online through www.intellesale.com and other Internet portals, such as C/Net, Amazon.com, Egghead+Onsale and Ubid. In addition, the company sells products through traditional distribution channels, including the Intellesale.com sales force and advertising via catalogs and other conventional media. About ATEC Group, Inc. Based in Hauppauge, New York Hauppauge (pronounced /hɔpɔg/) is a hamlet in the Town of Islip and the Town of Smithtown in Suffolk County, New York, United States. , ATEC Group, Inc., is a leading system integrator and provider of a full line of information technology products and services. As a one-stop company for the computer needs of businesses, government agencies and educational institutions, ATEC Group offers computer hardware and software, system integration networking, graphic arts graphic arts: see aquatint; drawing; drypoint; engraving; etching; illustration; linoleum block printing; lithography; mezzotint; niello; pastel; poster; silk-screen printing; silhouette; silverpoint; sketch; stencil; woodcut and wood engraving. , Internet and Intranet. The company is positioned for growth through its capabilities as a PC manufacturer of Nexar technology, in software development and e-commerce. For more information, visit the company's website at http://www.atecgroup.com . About Applied Digital Solutions, Inc. Applied Digital Solutions is a leading edge, single-source provider of e-business solutions. The company differentiates itself in the marketplace by enabling e-business through Computer Telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration Internet Integration (CTII CTII Comprehensive Technologies International, Inc. (TM)). With five-year revenue growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions was ranked as the fifth fastest-growing technology company by Deloitte & Touche in its 1999 Technology Fast 500 listing. For more information, visit the company's web site at http://www.adsx.com . Statements about the Company's future expectations, including future revenues and earnings, and all other statements 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 Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The Company intends that such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. |
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