SendTec/RelationServe Media Announce Fiscal 2005 Year-End Results -- Board Authorizes Change of Name to SendTec, Inc.ST. PETERSBURG, Fla. -- SendTec, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :RSVM RSVM Reduced Vertical Seperation Minima ) today announced the filing by RelationServe Media, Inc. of its Annual Report on Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for the fiscal year ended December 31, 2005. SendTec/RelationServe have previously announced the completion of the acquisition of SendTec by RelationServe in a multi-step transaction culminating with the consolidation of SendTec as a wholly-owned subsidiary of RelationServe on February 3, 2006. As a result, the results of SendTec are not included in the Form 10KSB for the period ended December 31, 2005 and the company will file, during April 2006, an amendment to its Current Report on Form 8K dated February 9, 2006 that includes financial statements for the combined companies, on a pro-forma basis, as required by SEC rules and regulations. Through October 31, 2005 SendTec operated as a wholly-owned subsidiary of theglobe.com inc. (TGLO TGLO Turbine Generator Lube Oil (submarines) .OB) and reported results of operations as a subsidiary of theglobe and thereafter, until February 3, 2006, as a minority-owned investment by RelationServe. In commenting on the results of the companies for 2005 and the consolidation, Michael Brauser, Chairman of the Board of Directors, stated "I am very pleased with the direction that our SendTec acquisition has taken us and the addition of our new highly-skilled SendTec management team and their approach to the challenges of combining the two operations. Consistent with our plans for the overall direction of the business, our Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the change of our name to SendTec, Inc., which will be submitted for approval by our stockholders shortly. Our management team is continuing to assess alternatives and I believe the outlook for the company overall is bright." Paul Soltoff, 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. , commented "Our SendTec business remains profitable on an operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. basis and is performing well, with many new accounts being added during the first quarter. While some of the challenges in consolidating our business with that of RelationServe are behind us, we have many significant challenges remaining ahead while we endeavor to evaluate the synergies and divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. ourselves of non-synergistic segments that may not fit with our overall strategy for the future. As such, we are undertaking a comprehensive analysis of the RelationServe businesses and are leaving open all options." Rationalization Plan On and following the consolidation, management commenced a joint review of the collective operations, synergies, and opportunities of the companies, which is ongoing. During the three-month period following October 31, 2005 and prior to the consolidation, the company operated RelationServe and Friendsand.com wholly-independently from SendTec due to legal and structural limitations imposed under the debentures issued by SendTec Acquisition Corp. ("STAC 1. (language) STAC - Storage Allocation and Coding Program. 2. (company) STAC - The company responsible for Stacker and stac compression. http://stac.com/. ") in connection with the financing of the SendTec purchase. During the first quarter of 2006, initial steps were taken to reduce staff at RelationServe and Friendsand.com, eliminate redundant positions and activities, replace certain members of management, and evaluate additional opportunities for cost savings through consolidation, reduction, disposition of assets or businesses, and other means in an emphasis to streamline the businesses and implement a workable plan to consolidate the management and operations of two synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. but highly divergent companies operating in multiple locations, with potential inefficiencies and redundant administration. As a result of this review, the company may take additional steps which can not be determined at this time, which may include further reducing its staff, combining administrative functions, relocating all or a portion of its operations, terminating certain activities or operations, or selling or disposing of assets of operations. Certain actions may require the consent of the company's debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. holders and require the company to recognize accounting charges for discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: or disposed operations. During the initial phase of management's review, we also were forced to recognize that non-cash accounting charges, unexpected costs and inefficiencies of operating as two separate entities required by the terms of the debentures, and the impact of Hurricane Katrina About SendTec - SendTec is a full service direct marketing company specializing in Internet customer and lead acquisition and DRTV DRTV Direct Response Television (media) advertising. The company's strategy is to generate ROI-centric, scalable results for its clients. The company is technology enabled and 100% accountable to achieving objectives. SendTec's seasoned management team offers extensive multi-disciplinary skills in-house to help clients acquire, retain and build profitable, long-term relationships with their customers. SendTec provides comprehensive Internet Advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. and DRTV Services including performance-based Internet media DRTV media buying. The company has a full suite of Internet and DR desktop media tracking systems including the only Patent-pending DRTV-to-Internet tracking system. Additionally, SendTec offers proprietary SEM technology-based services that are unique in the industry. For more information, visit: http://www.sendtec.com and http://www.relationserve.com. 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. STATEMENT UNDER 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: 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. To the extent that any statements made in this release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as "expects," "plans" "will," "may," "anticipates," believes," "should," "intends," "estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, the effectiveness, profitability, and marketability of such products, the ability to protect proprietary information, the impact of current, pending, or future legislation and regulation on the electronic marketing industry, the impact of competitive products or pricing, technological changes, the effect of general economic and business conditions and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update any forward-looking statements. As a result, you should not place undue reliance on these forward-looking statements. |
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