Avatech Solutions and Sterling Systems Intend to Combine; Acquisition Will Strengthen Avatech's Nationwide Reach.BALTIMORE & MADISON HEIGHTS Madison Heights, city (1990 pop. 32,196), Oakland co., SE Mich., a suburb of Detroit; inc. 1955. With the decline of the regional auto industry, the city has become a technology center for companies from a number of industries. , Mich. -- Avatech Solutions, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AVSO AVSO Association of Voluntary Service Organisations ), the recognized leader in design and engineering, product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. management, and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. solutions, and Sterling Systems and Consulting, the dominant design solutions provider in the upper Midwest The Upper Midwest is a region of the United States with no universally agreed-upon boundary, but it almost always lies within the US Census Bureau's definition of the Midwest and includes the states of Minnesota and Wisconsin, as well as at least the Upper Peninsula of Michigan. , today announced that they have signed a letter of intent whereby Avatech will acquire Sterling Systems. Founded in 1990 by principal Bruce White, Sterling Systems provides computer software and services for the civil engineering, manufacturing, and architectural industries. It has built a reputation for outstanding customer service with long-term client relationships. Sterling Systems has offices in Detroit, Indianapolis, Chicago, Cleveland, and Columbus. "The addition of Sterling Systems and their dedicated team of experienced design industry professionals will add seasoned resources to our rapidly growing team, enabling us to serve more customers from more locations," said Scotty Walsh, Avatech's 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. . "Our team is enthusiastic about joining forces with Avatech," said Bruce White. "With the resources of a dominant player in the design automation industry, we expect to accelerate growth and offer our customers access to an even greater breadth of solutions." "Mergers and acquisitions are integral to Avatech's growth strategy," said Walsh. "From a financial point of view, the merger would immediately increase Avatech's revenues as well as increase our profitability." The letter of intent reflects the agreement in principle of the parties to proceed to negotiate a definitive agreement. Closing is contingent upon numerous conditions, including approval by both companies' Boards of Directors and Sterling's owners, execution of definitive merger documents, financing arrangements, satisfactory due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , and other conditions. About Avatech Solutions Avatech Solutions, Inc. (OTCBB:AVSO) is the recognized leader in design and engineering technology with unparalleled expertise in design automation, data management and process optimization for the manufacturing, engineering, building design and facilities management markets. Headquartered in Owings Mills, Maryland Owings Mills is an unincorporated community and a census-designated place in Baltimore County, Maryland, United States. The population was 20,193 at the 2000 census. Owings Mills is home to the northern terminus for the Baltimore Metro Subway and to Owings Mills Mall. , the company specializes in consulting, software systems integration and implementation, standards development and deployment, education, and technical support. Avatech is one of the largest integrators of Autodesk software worldwide and a leading provider of PLM (Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design solutions. The company's clients include industry leaders from Fortune 500 and Engineering News Record's Top 100 companies. Visit www.avatech.com for more information. About Sterling Systems Founded in 1990, Sterling Systems & Consulting, Inc. is a leading provider for CAD and design technologies in the United States. Sterling Systems is known for delivering complete technology solutions including training, implementation, customization as well as software and hardware solutions. The company is headquartered in Madison Heights, MI with several regional offices. Visit http://www.sterling-systems.com for more information. This press release contains forward-looking statements about the expectations, beliefs, plans, intentions, and strategies of Avatech Solutions, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Avatech and its industry, and other factors that could affect the Company's financial results, are included in its Securities and Exchange Commission filings, including, but not limited to, the annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ending June 30, 2005 and other Securities and Exchange Commission filings. Investors and shareholders may obtain a free copy of the documents filed by Avatech Solutions, Inc. with the Commission at the Commission's web site at www.sec.gov. All brand names, product names, or trademarks belong to their respective holders. |
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