Auxer Announces Telecom Acquisition Strategy; Discounted Telecommunication Sector Creates Target Rich Environment.Business Editors WEST PATERSON West Paterson (păt`ərsən), borough (1990 pop. 10,982), Passaic co., NE N.J., a suburb of Paterson; inc. 1914. Electric, electronic, and photographic products are made in the borough. , N.J.--(BUSINESS WIRE)--May 7, 2002 The Auxer Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXGI - www.axgiinvestor.com) announced today that the Board of Directors is focusing its corporate resources on sourcing acquisition candidates in the telecommunication and technology industry sectors. Management has identified several extremely attractive candidates that have historic revenues in the $20 - $50 million range. The Company is seeking to invest and/or acquire growth oriented and profitable operations in the areas of Telecommunications and Technology. Auxer is targeting companies that will enhance its current Prepaid Telecommunications group, while at the same time providing core synergies with its current base of products and services. "This decision for the Company to predominately focus on Telecom and Technology marks a key point in Auxer's growth strategy. Two years ago, the Company announced its interest in entering into the telecommunications arena and shortly thereafter invested into Prepaid Telecom. The foundation for implementing our current acquisition strategy is in place with our current telecom division. Today the telecom industry, as well as the technology industry, has in general undergone a significant market correction Market correction A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values. . The devalued de·val·ue also de·val·u·ate v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates v.tr. 1. To lessen or cancel the value of. nature of this core industry presents an excellent opportunity for Auxer to acquire solid companies with significant revenues at substantial discounts from recent valuations. It is the vision of The Auxer Group to acquire a solid company with a promising future in a depressed sector and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. a market upturn," said Eugene Chiaramonte, Chairman of The Auxer Group, Inc. The company is currently reviewing strategies with regard to its automotive division that will further enhance shareholder value. Divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). plans including selling the division or seeking a spin-off are currently being considered as viable options. Management expects more developments formalizing the current acquisition discussions to be forth coming soon. ABOUT THE COMPANY The Auxer Group is a holding company that consists of two groups; a Telecommunications Group and an Automotive Group. The Telecommunications Group is focused on distribution of prepaid products, which includes The X-Factor(TM) and Platinum Series(TM). The Automotive Group is focused on aftermarket wholesale and distribution of automotive and marine products and parts, which includes Easy Test(R) and Garry's Royal Satin(TM). Forward-looking statements in this release are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, competition, new products and technological changes, intellectual property rights and other risks. For further information please contact the Company at 800/201-3972 and ask for investor relations Investor relations The process by which the corporation communicates with its investors. or visit our website www.axgiinvestor.com. |
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