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EXHIBIT 99.1
MONDAY SEPTEMBER 25, 5:35 PM EASTERN TIME
PRESS RELEASE
HENCIE CLOSES ON FIRST FINANCING ROUND WITH EDGE TECHNOLOGY GROUP FOR $2.8
MILLION
SERVICE AGREEMENT DEAL BETWEEN EDGE AND HENCIE TO PROVIDE MUTUAL EXPANSION FOR
BOTH COMPANIES
DALLAS--(BUSINESS WIRE)--Sept. 25, 2000-- Edge Technology Group Inc
(OTCBB:EDGED - news) and Hencie Inc. today announced that they have completed
the initial financing round for Hencie, a rapidly growing eBusiness solutions
and applications provider. To date, Edge has funded $1.4 million in Hencie, with
an option to invest an additional $1.4 million, which collectively represents an
ownership of approximately 10 percent of the issued and outstanding capital
stock of Hencie on a fully diluted basis. Also, Edge holds an option to purchase
from Hencie and its founder securities representing an additional 10 percent of
Hencie for $3.5 million. The funds from the financing will be used to expand
Hencie's highly successful regional business model to open new offices, market
its Enterprise Plug-in(TM) products, add new product lines and launch innovative
service offerings.
Hencie and Edge will work together under a separate strategic services
agreement, which is in development. Under the terms of the agreement, Hencie
will assist Edge in identifying and evaluating possible investment opportunities
with Hencie's technology partners and clients, as well as provide consulting
services for Edge related companies. Edge will likewise identify financial
partners for Hencie and aid Hencie in corporate planning, including the
development and execution of its international expansion.
"Hencie has demonstrated its future potential through its present revenues,
profits and rapid growth," said Pierre Koshakji, President and Chief Executive
Officer of Edge Technology Group. "We believe Hencie competes with major players
in the eBusiness consulting market, such as Viant or Scient, and we also
anticipate a productive, integrated alliance that will benefit Edge's own
business model through Hencie's expertise in providing solutions for the New
Economy."
Koshakji added that besides Hencie's strength as a company, Edge is also
impressed with the escalation of eBusiness and the demand for related services.
Market research firm International Data Corp. (IDC) projects that the market for
services and systems integration companies will reach $78.6 billion by 2003.
Since its inception in 1997 Hencie has doubled in size each year without venture
capital. "This investment will improve our ability to serve clients as well as
accelerate our growth," said Adil Khan, President and Chief Executive Officer of
Hencie. "And the partnership with Edge is an opportunity to align Hencie with
more technology ventures in need of eBusiness strategies and implementation."
Pierre Koshakji will serve on the Board of Hencie and Adil Khan will serve on
Edge's Board of Advisors.
About Edge Technology Group, Inc.
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Edge, previously Visual Edge Systems Inc., operates, finances and develops
technology-oriented companies. Edge seeks operating and strategic investing
opportunities in business segments where technology can increase profitability.
Edge's operating division, known as Visual Edge Systems, produces and markets
CD-ROM Internet instructional sports products, including One-On-One with Greg
Norman.
More About Hencie
Hencie is an eBusiness solutions and applications provider delivering
innovative, strategically aligned solutions designed to "get business
clicking(TM)" for a broad range of clients and industry segments. Hencie, with
headquarters in Dallas, was founded in 1997 and has offices in Houston and
Austin. Hencie is a Preferred Service Provider of Oracle and also has strategic
partnerships with i2 Technologies, Allaire and other international technology
providers.
Hencie develops products called Enterprise Plug-ins(TM) that enhance the
functionality of its partner's software. Enterprise Plug-ins leverage the
strengths of industry-leading software and provide customers with quicker ROI
for their software investment.
Hencie serves mid market and larger companies and has contracts with a broad
selection of clients such as Raytheon, Nestle, Honeywell, Kerr-McGee, the PGA,
Lone Star Steel, Kaiser Aluminum, Oklahoma Fixture Company, Toni & Guy, Oklahoma
University, Zurn, Western Gas and other companies.
For more information visit http://www.hencie.com.
This document contains references to future events and results, including
without limitation anticipated transactions involving Edge Technology Group,
Inc. These statements are forward-looking statements regarding future events and
the future financial performance of 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 Edge's periodic reports and registration statements
filed with the Securities and Exchange Commission (viewable at www.sec.gov),
including its Form 10-K for the year ended Dec. 31, 1999, and the Form 8-K filed
on July 17, 2000.
Contact:
Teq Marketing
Susan Huber, 972/231-1973
[email protected]
or
Hencie Inc., Dallas
Michael Patrick, 972/671-0011
[email protected]
