ComTech Updates Business Strategy and Reports Preliminary Numbers For 1999.Business Editors HOUSTON--(BUSINESS WIRE)--April 13, 2000 ComTech Consolidation Group Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCGI CCGI Coventree Consulting Group International ) today announced its preliminary 1999 year-end revenues and earnings. The company anticipates year-end revenues of approx. $9.5 million for fiscal 1999 with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of approx. $360,000 before one time charges. Including one time charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the closing and disposal of certain health care operations during the 3rd and 4th quarters of 1999, that had been acquired under previous management teams, the company now expects to report a loss of approx. $2.8 million for fiscal 1999. ComTech Chairman and Chief Executive Officer Walter Davis Walter Davis may refer to:
Davis continued, "The new management is very excited about our new business model of acquiring and developing Internet and e-commerce related companies. We plan to institute a strategy similar to that of CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group Internet Group (Nasdaq:CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) ) or Internet Capital Group Inc. (Nasdaq:ICGE) by building Internet and e-commerce related companies to the point where they are ultimately spun-off to the shareholders of CCGI. We are firm believers in the value of the Internet for the new economy and see tremendous opportunities in today's marketplace. As stated in our press release of March 17th we are actively involved in talks to acquire several exciting Internet related companies and anticipate the signing of an agreement in the very near future. We feel that these acquisition candidates have tremendous potential." To facilitate this new business model of acquisitions and to properly fund the company, the new management team is seeking shareholder approval to increase the number of authorized shares Authorized shares Number of shares authorized for issuance by a firm's corporate charter. to 100 million. This increase will give management the ability to increase shareholder value by building ComTech into a much larger company, through both acquisitions as well as provide for increased marketing efforts. Under previous management, minimal resources were used to develop the Technology side of the business. "As the CEO and chairman of ComTech, and having built the companies entire board of directors, we are aware that our shareholders will ultimately judge us by our results. Our goal is simple: We intend to build your confidence in the company by successfully executing a proven, profitable business model at ComTech. We now have in place a strong board of seasoned business professionals, an alliance with Industry experts at Interlucent.com for Web and e-commerce development and a quality pool of acquisition candidates. We believe by outsourcing certain functions and implementing cost controls our strategy will provide a more consistent and predictable revenue stream while limiting our overhead exposure that should result in continued increases in both sales and earnings, while providing shareholders with potential spin-off opportunities as the companies develop." About ComTech Consolidation Group Inc. ComTech Consolidation Group Inc. is a Houston based Internet consolidation holding company whose primary focus is to acquire and develop Internet and e-commerce related companies to eventually be spun-off to shareholders. ComTech trades on the Over the Counter Bulletin Board under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CCGI and is a fully reporting company. The company currently owns and operates Technology and Internet related companies in the Houston, market as well as health-care related businesses in the Louisiana market. The company's Web site is www.ccg.net, www.nol.net and ComTech SEC filings can be found at www.freeedgar.com 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 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. created thereby. Since these statements (future operational results and sales) involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. |
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