Printer Friendly

Mcglen Internet Group, Inc. and Lan Plus Corporation Complete Merger; New Company to be Named Northgate Innovations, Inc.

Business Editors

CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--March 15, 2002

Northgate Innovations, Inc. (OTCBB:MIGS), formerly Mcglen Internet Group Inc., and Lan Plus Corporation today announced that the parties have agreed to complete the merger between the two companies.

Under the terms of the merger agreement Lan Plus shareholders will receive 3.128 shares of Mcglen common stock (after taking into consideration the 1:10 reverse stock split that was approved by Mcglen shareholders at its annual meeting on February 28, 2002) for each fully diluted share of Lan Plus. Following the conclusion of the merger and the conversion of Mcglen's outstanding debt to Lan Plus, Lan Plus shareholders will own approximately 75 percent of Northgate Innovations.

After taking into consideration the 1:10 reverse stock split, the new company will have approximately 19 million shares of common stock outstanding.

As part of the merger, Mcglen has changed its name to Northgate Innovations, Inc. Northgate securities are expected to be trading on the OTCBB under a new symbol, NRTH, by the end of March 2002.

Andy Teng, the new chairman and CEO of Northgate commented, "We are very pleased with our stockholders' support and the finalization of the merger. Our combined companies create a powerful and profitable computer marketing organization with strength in both traditional channels and e-commerce. Our collective strength and technological focus coupled with our combined marketing reach will benefit our customers, employees and stockholders."

"This is an exciting time for everyone at the new organization," commented Northgate CFO Grant Trexler. "The combined companies have demonstrated excellent growth and profitability over the last two quarters. With the merger behind us we can now focus on continued profitability, growth and delivering shareholder value."

As reported in a news release dated February 4, 2002,on a combined basis, after elimination of inter-company sales, Northgate's revenue was in excess of $86 million for the year ended December 31, 2001. "It is important to note," commented Trexler, "that combined fourth quarter sales of approximately $34.0 million were record sales for Northgate and a 61 percent increase over sales of $21.1 million for our combined third quarter."

Northgate is in the process of submitting the appropriate merger documents as required by the State of California and the State of Delaware and expect the merger to be effective March 15, 2002.

About Lan Plus Corporation

Lan Plus manufactures computers and turnkey computer offerings through high profile business partners in the retail, catalog, telemarketing, as well as other industries. Lan Plus markets its products under the Northgate, Protek, e-Pcdirect and Netway brands as well as through private label programs with systems integrators and resellers. Visit the Lan Plus web site at

About Mcglen Internet Group

Mcglen Internet Group is focused on providing specialty technology, components and memory products through its Business-to-Business (B2B) storefront exchanges. Mcglen provides unlimited global access to "difficult to source" technology-oriented products and services. Mcglen operates three B2B storefronts at the following Internet addresses:, a B2B site targeted at IT and IS professionals; and a B2B site targeted at resellers, integrators and small office customers. For more information about Mcglen Internet Group, visit the corporate Web site at

Safe Harbor

The statements in this news release that relate to future results, market penetration, projected revenue growth and profitability trends, are forward-looking statements. These forward-looking statements involve certain risks and uncertainties associated with demand for the company's products and services, development of markets for the company's products and services as well as other risks identified in the company's SEC filings. Actual results, events and performance could differ materially. Readers are therefore cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Mcglen Internet Group undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Mar 15, 2002
Previous Article:New Report From MRG Identifies Opportunities in U.S. Biotech and Bio-Computing Markets; Fusion of Computing and Drug Discovery Technologies is Key to...
Next Article:Polaris Industries Appoints Ernst & Young LLP as Auditor.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters