Visual Edge Systems to Make Strategic Investment in Hencie Consulting
Boca Raton, Florida. July 17, 2000 -- Visual Edge Systems, Inc. (OTC Bulletin
Board: EDGE) announced today that it has reached terms for a strategic
investment with the parent company of Hencie Consulting Services, Inc.
("Hencie"), a fast growing national e-business solutions provider and
application services company. This announcement comes a few days after Edge
announced its proposed reorganization and expansion of operations to include
operating, financing and developing technology-oriented companies.
As part of definitive agreements to be entered at closing, Edge will invest up
to $6.6 million into Hencie and sign a strategic services agreement that will
mutually serve Edge and Hencie's business models for growth. As part of the
strategic relationship, Hencie will evaluate and provide key services and
support to Edge companies. Hencie will also assist Edge to identify future
investment opportunities and strategic partners through the many technology
clients and technology partners Hencie serves. Edge will assist Hencie with the
development and execution of its international expansion plans, promote Hencie's
services, and assist in its corporate strategic planning and development. Pierre
Koshakji, named to become President and CEO of Edge's proposed reorganized
company, will serve on the Board of Hencie, and Adil Khan, President and CEO of
Hencie will serve on Edge's Board of Advisors.
Hencie is a Texas based corporation that provides unique, patented applied for,
e-business solutions to Fortune 1000 and mid-market companies. Hencie offers
end-to-end e-business solutions based on technologies from Oracle, i2
Technologies, Ariba, Allaire and other technology leaders. Along with Arthur
Andersen and Grant Thornton, Hencie is one of three preferred solutions
providers in the Southwest marketing region for Oracle. Hencie has grown from 20
employees in 1998 to over 100 employees currently and has been profitable over
the past three years. Clients of Hencie include Raytheon Corporation, Kaiser
Aluminum, Del Monte, Kerr- McGee Corporation and PGA of America.
"As businesses increase their dependency on technology to gain competitive
advantages," adds Mr. Khan, "Hencie will be able to accelerate its ability to
deliver enterprise platform solutions through its strategic alliance with Edge."
"We have been closely following Hencie's growth for over nine months and are
very impressed with Hencie's profitability, top management and the quality of
consultants it attracts" explains Pierre Koshakji. "We see the strategic
relationship with Hencie as a powerful initial step to execute our new business
model."
Visual Edge Systems, Inc. based in Boca Raton produces and markets CD-ROM
Internet instructional sports products including One-On-One with Greg Norman and
is actively
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engaged in the research and development of new complimentary technologies. The
company announced on July 13, 2000 a proposed plan to reorganize and expand
operations to include operating, financing and developing technology-oriented
companies.
The Hencie investment is expected to close in early August 2000.
The Company cannot assure investors that the transactions discussed in this
press release will close, that such transactions will prove successful or that
unforeseen developments will not occur, any of which could have a material
adverse effect on the Company's business, financial condition and results of
operations.
This statement contains references to future events and results, including
anticipated transactions involving Visual Edge Systems Inc. These statements are
forward-looking statements regarding future events and the future financial
performance of Visual Edge, and no assurances can be made regarding their
eventual occurrence. Actual occurrences and results may differ substantially and
materially from those projected as a result of risks and uncertainties detailed
in Visual Edge's periodic reports and registration statements filed with the
Securities and Exchange Commission (viewable at www.sec.govhttp://www.sec.gov),
including its Form 10-K for the year ended December 31, 1999, and the Form 8-K
filed in connection with the transactions contemplated in this statement.
SOURCE: Visual Edge Systems Inc.
