PRESS RELEASE December 4, 2000
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STRATESEC INCORPORATED
ACQUIRES
SECURITY SYSTEMS INTEGRATION, INC.
Sterling, Virginia - STRATESEC Incorporated (AMEX: SFT) has acquired Security
Systems Integration, Inc. ("SSI"), by the exchange of two million shares of
STRATESEC's common stock for all the issued and outstanding shares of SSI. The
two million shares of STRATESEC common stock consist of 1,650,000 newly issued
shares and 350,000 shares previously issued and repurchased over the past two
years, pursuant to STRATESEC's Stock Repurchase Program.
The Company believes the transaction qualifies as a pooling of interest;
however, this is subject to final determination by the Company's auditors. If,
on the other hand, it is accounted for on a purchase basis, goodwill is
relatively insignificant. In any event, as a result of the merger, STRATESEC
believes it will achieve $40 to 50 million of annual revenues, and earnings of
40 to 50 cents per share in year 2001.
Security Systems Integration, Inc. is a privately-held security systems company
engaged in design, engineering, installation, maintenance, technical support
services and training. Both SSI and STRATESEC have similar business models with
SSI serving primarily the U.S. Government, and STRATESEC serving primarily the
private sector. The companies will combine their businesses and consolidate
their main offices and headquarters into one facility in Springfield, Virginia.
Mr. Cameron Hashemi, founder of SSI, has become President/CEO of STRATESEC's
Government Services Division and has been appointed to the Company's Board of
Directors. Mr. Barry W. McDaniel has become the President/ CEO of STRATESEC's
Corporate Services Division, and already serves as a board member.
STRATESEC's Chairman, Wirt D. Walker, III, stated: "This acquisition is dynamic,
accretive and synergetic. It broadens our business base, enhances our
capabilities, operating efficiencies, and financial condition, and accelerates
potential revenue and profitability growth."
STRATESEC, Incorporated is a fully integrated single source security systems
company. The company provides consulting and planning, engineering and design,
systems integration, and maintenance and technical support services to
commercial and government clients worldwide. STRATESEC has completed security
projects for airports, corporations, utilities, prisons, universities, and
federal, state and local governments.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risks and uncertainties.
Actual results, events and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The company undertakes no obligation to
release publicly the results 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.
For more information contact:
Wirt D. Walker, III
Chairman
(202) 965-0777
