Auxer Signs Letter of Intent to Acquire a Telecommunication Switch Operation.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 20, 2000 The Auxer Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXGI) announced today that it signed a letter of intent with Sponge Technologies which will become Auxer Telecom Inc., a Telecommunications Switch Operation in Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. California. Under the terms of the agreement, Auxer will acquire the assets of a "turnkey" switch operation capable of generating approximately $60 Million in telecommunications traffic on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The assets being assembled under Auxer Telecom will include the equipment, licenses, technology, proprietary & integrated software Separate software components or applications that have been combined into one package. See integrated software package. , engineering and personnel necessary to run Auxer's telecommunications operation. Under this structure, Auxer is finalizing discussions with another company to redirect re·di·rect tr.v. re·di·rect·ed, re·di·rect·ing, re·di·rects To change the direction or course of. n. A redirect examination. re its established telecommunication traffic through Auxer's switches. When the transfer of this company's traffic is completed, Auxer Telecom is projected to generate approximately $60 Million with $6 Million in earnings. Additionally, Auxer has identified a second group with approximately $60 Million in additional telecommunications traffic. Discussions are planned to begin in August and if successful, Auxer Telecom could realize revenues of approximately $120 Million in the next 18 months. "The Telecom Group project has taken on a life of its own Memory Burn A Life Of Its Own was released by Noise Kontrol in 2002. Memory Burn is made up of several high profile musicians who came together to create this special work. . We feel an investment in the telecommunications industry will prove to be a tremendous investment for our shareholders at this time. The team that is being assembled around Auxer Telecom is a top tier group of management encompassing over 100 years of experience in this industry. I plan to release information on the management team over the next couple weeks. I am expecting to announce a letter of intent with the first telecommunications traffic distributor as early as next week. Appropriate funding has been sourced and approved. Final discussions for the required financing are underway and I expect to announce a Letter of Intent and/or closing on the telecom funding within the next few weeks. I plan to have Auxer Telecom operating in August and generating revenue during the third quarter," said Eugene Chiaramonte, Jr., 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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