DataWorld Solutions Restructures Balance Sheet Eliminating Over $2 Million in Debt; Creditors Convert Debt to Equity at Substantial Premium to Price of Company's Common Stock.Business Editors/High-Tech Writers HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 8, 2004 DataWorld Solutions, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DWLD) announced today that it has executed a series of agreements that will reduce its overall indebtedness by over $2 million. The agreements, which are part of the Company's continued initiatives to improve its balance sheet, will result in the exchange of $2.3 million in debt and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. in return for a $250,000 note and restricted shares of the Company's common stock valued at $1.75 per share. This represents a premium in excess of 300 percent to the current market price of the Company's common stock. DataWorld's common stock closed Monday at $0.40 per share. The Company is continuing negotiations with other creditors to further reduce its indebtedness. "We have worked hard over the past six months to improve our balance sheet, bring our public reporting requirements up to date to obtain a listing on the Over-the-Counter Bulletin Board and to build our security and defense business," said Daniel McPhee, the Company's President. "The conversion by our creditors of debt to equity at a significant premium to the price of our common stock reflects their confidence in our future prospects. We believe that the combination of robust business prospects and a strengthened financial condition will play an important role in delivering long-term, sustainable value Sustainable Value Sustainable Value is an approach to measure and manage sustainability performance. The concept was developed by researchers who are working today for Queen's University Belfast for shareholders." About DataWorld Solutions, Inc. DataWorld Solutions, Inc. is a multi-regional manufacturer of electronic cable assemblies used in providing connectivity solutions for customers operating a wide range of data systems to include linking or connecting standard or proprietary electronic devices and peripheral components from different vendors to provide solutions for various customer equipment configurations and requirements. DataWorld adds value by providing connectivity solutions, which may include distributed sales for passive components such as electronic connectors, electronic wire and cable, cabinets and racks and patch panels A group of sockets used to connect incoming and outgoing lines in communications and electronic systems. Patch panels allow for manually wiring the connections with small cables (patch cords), rather than automatic switching. , and active components including hubs, bridges, routers, gateways and modems. DataWorld encourages customers to discuss their unique cabling requirements with its experienced sales/marketing support team so that cost-effective solutions can be provided for customer specific needs. About DWS DWS Dallas Wind Symphony (Dallas, TX) DWS Department of Workforce Services (Wyoming) DWS Division of Workforce Solutions (Wisconsin) DWS Driving While Suspended Defense Systems, Inc. DWS Defense Systems, Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of DataWorld Solutions, Inc., was created in response to the growing security concerns expressed by the clients of DataWorld. In reaction to acts of domestic and international terrorism Noun 1. international terrorism - terrorism practiced in a foreign country by terrorists who are not native to that country act of terrorism, terrorism, terrorist act - the calculated use of violence (or the threat of violence) against civilians in order to attain , businesses are searching for better ways to protect their buildings, and more importantly, to better protect the people who work in or visit these locations. DWS will offer one such solution -- high quality, state of the art safety/security glass product applications and associated security systems. The highly skilled DWS Defense Systems team working in collaboration with its partners will design, develop, manufacture, install and market specialty products, equipment, and systems for the safety and security needs of all sectors of the domestic and international marketplace. Except for historical matter, the matters in this press release are 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. and 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. The forward-looking statements reflect assumptions, and involve risks and uncertainties, which might affect DataWorld's business and prospects and cause actual results to differ materially from these forward-looking statements, which are detailed in DataWorld's public filings with the SEC. For more information on DataWorld Solutions, Inc. visit: www.dwsdefense.com and www.dataworlddirect.com. |
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