Auxer Signs Letter of Intent to Acquire $30 Million Telecommunications Distributor.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)-- July 27, 2000 The Auxer Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : AXGI) announced today that it has signed a letter of intent to acquire the assets of Clifton Telecom Alliance a northeast United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. distributor of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. phone cards. While the terms have not been disclosed, Auxer has agreed to pay cash and stock as consideration for the assets under a binding agreement. Clifton Telecom Alliance is projected to generate $25 - 30 million in revenue during the initial twelve months under the Auxer Telecom Group. The assets and operations of Clifton Telecom Alliance are to be integrated as part of the Auxer Telecom Group. Based on a successful transition of Clifton Telecom Alliance into the Auxer Telecom Group, Auxer has entered into discussions to acquire a second distributor located in the northeastern United States with estimated revenues of $30 million. Under Auxer's strategy, these distributors are only the initial additions to the Auxer Telecom Group. Auxer has planned discussions over the next 60 days with additional distribution operations to acquire additional telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. traffic. "By combining the revenue from Clifton Telecom Alliance and Auxer Telecom Switch Operation, Auxer projects the Auxer Telecom Group will generate increased profits," said Eugene Chiaramonte, Chairman of Auxer. ABOUT THE COMPANY The Company is a holding company which is forming a Telecommunications Group and currently owns an Automotive Group with three (3) active subsidiaries: The Harvey Westbury Corporation Inc., Hardyston Distributors, Inc. and CT Industries, Inc. Harvey Westbury assembles and packages automotive accessories under the name, Easy Test, sells engine treatment under the name, Formula 2000 Ultimate and sells waxes and polishes under the name, Garry's Royal Satin to the automotive, marine, and aviation industries. Hardyston Distributors, Inc. is a specialty distributor of automotive parts and accessories to local mechanics, service stations and dealers. CT Industries, Inc. has been designated to house any future internet-related business and currently handles the internet-related sales from the company's websites as well as other retail programs. 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. 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 more information please visit our websites at www.auxer.com |
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