ComTech Consolidation Group, Inc., Announces Acquisition of Golden Age Healthcare Inc and Updates Forecast For 3rd Quarter '98.HOUSTON--(BUSINESS WIRE)--July 30, 1998-- Acquisition Will Add Approximately $3.5 Million in Sales Revenue Per Quarter ComTech Consolidation Group, Inc., (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CCGI CCGI Coventree Consulting Group International ) today announced the acquisition of Golden Age Healthcare, Inc. (GAHI GAHI Georgia Association of Home Inspectors ), a Louisiana corporation. The transaction was consummated by ComTech exchanging 11,000 shares of its Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for all of the capital stock of GAHI. GAHI is a home health care provider headquartered in Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La. with a
dominant market presence through out Louisiana, and a viable market
presence in Dallas.ComTech stated that the roll up acquisition of GAHI under its Baton Rouge, based subsidiary, Professional Management Providers, Inc. (PMP See point-to-multipoint and portable media player. PMP - Portable Media Player ), results in PMP now having key contiguous operations in Medicare/Medicaid territories through out Louisiana, and will add approximately $3.5 million in sales revenue per quarter. The acquisition also gives ComTech/PMP a firm foothold in the Texas market, where it plans further expansion. ComTech also stated, that it has now updated its third quarter sales revenue forecast from $7.1 million to $10.6 million, while earning approximately $1.0 million EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). , which translates into roughly $.04 per share in net earnings for the quarter. ComTech Consolidation Group, Inc. is a Houston based consolidation/acquisition company. Presently, ComTech is focusing on two industries, specialty medical service providers, such as partial hospital health care provider companies for mental outpatients and communications/network technology companies, primarily in the Internet area. Statements regarding financial matters 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 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. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.
CONTACT: M&A West, Inc
Scott Kelly, 650/588-2678
www.mawest.com
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