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Lone Wolf Sells Division; Reduces Outstanding Shares.

Business Editors


Lone Wolf Energy Inc. announced today the sale of its wholly owned subsidiary for 7,400,000 shares of its common stock (OTCBB: LWEI). Sold to Naylor Concrete Inc., the Inc. transaction reduces the number of outstanding LWEI shares by more than 20 percent.

Lone Wolf President Marc Newman explained the reasoning behind the sale as an opportunity to reallocate funds from a business unit requiring funding from sources other than operating revenues, to the rapidly growing Zenex Communications, its telecommunications subsidiary. "ChurchLink has potential but its capital needs over the next 12 months would have been a substantial hit to the bottom line with no guarantee of revenues to support it. Its annual costs were approximately $500,000 and growing. The opportunity to put those same dollars to work in Zenex is a much smarter allocation of funds."

A switch-based provider, Zenex is tariffed as an interexchange carrier in 48 states and has worldwide terminating access. Incorporated in 1994 to take advantage of opportunities in the rapidly growing telecommunications industry, Zenex was named by Metro 50 magazine as the fastest growing privately held company headquartered in Oklahoma City in 1996 and was listed as one of the five fastest growing companies in 1997. In an important strategic move in 1998, Zenex accepted an offer from a major regional carrier and it advantageously sold its long-distance business, which enabled it to reposition itself to be focused in high-profit targeted niches where Zenex has preemptive technologies. In 2000, Zenex was named as one of only five recipients of the 2000 Oklahoma Quality Award for Commitment to Excellence.

"With its excellent track record in revenue growth, quality assurance and proprietary technologies, Zenex has a bright future," stated Mr. Newman. "The sale of is a double-win for Lone Wolf, which, by reallocating its funding to Zenex, expedites its earnings potential that, when realized, will increase earnings per share by over 20 percent."

Forward-Looking Statements

Statements about the Company's future expectations, including future revenues, earnings and transactions, as well as all other statements in the press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.
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Publication:Business Wire
Date:Apr 12, 2001
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