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Frontline Communications to Acquire Provo, Kiboga; Purchase Agreement Executed.


Business & High-Tech Editors

PEARL RIVER Pearl River, uninc. village (1990 pop. 15,314), Rockland co., SE N.Y., near the N.J. line. It is a residential suburb of New York City, and a computer and telecommunications research and development center.
Pearl River

River, central Mississippi, U.
, N.Y.--(BUSINESS WIRE)--Dec. 23, 2002

Frontline Communications Corp. (AMEX AMEX

See: American Stock Exchange
: FNT FNT Font (File Name Extension)
FNT Front
FNT Fontana (postal locality, Malta)
FNT Fascinating New Thing (song)
FNT Flint, MI, USA - Bishop Int'l Airport
), www.fcc.net, announced today that it has signed a purchase agreement to acquire two entities providing diverse services with combined revenue of approximately $130 million annually.

Under the terms of the agreement, the Company will acquire Proyecciones y Ventas Organizadas, S.A. de C.V. (Provo) and Kiboga Systems Inc. (Kiboga), in all stock exchanges. Upon closing, the shareholders of Provo and Kiboga will own a substantial majority of the Company's common stock. The transaction is subject to certain closing conditions, including the satisfactory completion of 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 regulatory and shareholder approvals, and is expected to close in the first quarter of 2003. The Company's intent is for its common stock to continue to trade on the American Stock Exchange American Stock Exchange (AMEX)

Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921.
 after the consummation of the transaction.

About Provo

Provo (www.provo.com.mx), a Mexican corporation, maintains a dominant position within the prepaid calling card and cellular phone airtime markets in Mexico. Provo is currently anticipating expanding its existing services to the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. , and intends to begin marketing "smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. " based on recently developed proprietary chip-based software in the near future. Provo and its affiliates have been in operation for over seven years, and had combined reported (unaudited) revenue in 2001 of approximately $130 million, with operating profits of approximately $1 million. Un-audited results of the combined entities for the first nine months of 2002 indicate revenue of approximately $80 million, with an operating profit of about $800,000. Under the terms of the Agreement, Provo will acquire a significant majority of the equity of its affiliates prior to the closing of the transaction.

About Kiboga

Kiboga (www.kiboga.com), a high technology and software development company headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation).
The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl.
, has designed a robust data integration system known as "Data Integration for Law Enforcement" (DILE). The company is in its early stages, yet its software is fully developed, cutting edge and significant to law enforcement given today's homeland security needs. DILE is a powerful, user friendly, interface that allows law enforcement agencies A law enforcement agency (LEA) is a term used to describe any agency which enforces the law. This may be a local or state police, federal agencies such as the Federal Bureau of Investigation (FBI) or the Drug Enforcement Administration (DEA).  at all levels (local, county, state or federal) to access and share critical information of a criminal or non-criminal nature in real time, any time, wirelessly linking disparate databases as one. DILE has been installed and is operating smoothly in the Dallas, Texas, and McKinney, Texas, Police Departments, and additional contracts with other police departments are already in place. The Company has also developed other technologies that support data access and information gathering for law enforcement. With over 25,000 law enforcement jurisdictions in the United States alone, the Company's Vice President of Marketing and Sales, Ralph King, a former sales leader at Cisco Systems and Lucent Technologies, stated, "Kiboga is poised to deliver a significant number of systems which allows us a distinct advantage in this highly specialized market."

About Frontline

Founded in 1995, Frontline Communications Corporation provides high-quality Internet access and Web hosting services to homes and businesses nationwide. Frontline offers Ecommerce, programming, and Web development services through its PlanetMedia group, www.pnetmedia.com. Frontline is headquartered in Pearl River, New York Pearl River is a hamlet (and a census-designated place) in Rockland County, New York, United States. The population was 15,553 at the 2000 census.

Pearl River is in the western part of the Town of Orangetown.
, and is traded on the American Stock Exchange.

The statements which are not historical facts contained in this press release are forward looking statements that involve certain known and unknown risks and uncertainties, including but not limited to, the ability to successfully consummate the proposed acquisitions of Provo and Kiboga, and, if consummated, the ability to successfully integrate the acquired companies' businesses into Frontline, changes in the market for Internet services, regulatory and technological changes, economic factors, increased competition, foreign currency devaluation Currency devaluation

A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold.
, foreign market risk, and the nature of supplier of customer arrangements which become available to the Company in the future. The Company's actual results may differ materially from the results discussed in or implied by any forward-looking statement 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.
. The words "intend," "expect," "should," "project," and "anticipate," and similar expressions identify forward looking statements. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date they were made.
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Dec 23, 2002
Words:686
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