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EXHIBIT 99.1
EXHIBIT 99.1. Press Release dated December 22, 2000
FRIDAY DECEMBER 22, 4:27 PM EASTERN TIME
PRESS RELEASE
NETDIRECT TO RESTRUCTURE AROUND ITS BUSINESS-TO-BUSINESS
WHOLESALE TECHNOLOGY UNIT THROUGH CHAPTER 11 FILING
COMPANY RENAMED GRAPHICS TECHNOLOGIES, INC. (GTI)
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Dec. 22, 2000-- Graphics Technologies,
Inc. (OTCBB:VTCO - news; formerly known as Virtual Technology Corporation and
Netdirect Corporation International) announced that, to facilitate restructuring
into a business-to-business (B2B) wholesale technology provider, it filed a
voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy
Code on December 20, 2000.
Greg Appelhof, Chief Executive Officer, commented, "Our GTI business unit
formerly was profitable. We believe the reorganization will enable us to focus
on this business. Despite tremendous efforts by our employees and the loyalty of
our vendors and customers, we were unable to make the retail e-commerce model
work. It is now imperative that we concentrate all of our efforts on competing
in the wholesale technology marketplace."
"During the past few months," Appelhof continued, "we have taken steps to
consolidate operations and reduce staff. As a result, we have significantly
lowered our cash operating expenses. We expect to drive more efficiency through
this reorganization."
Appelhof also said that GTI has restructured its management team, appointing
Kent Hjerpe as President to head sales and strategic development and John
Harvatine to the additional post as Chief Operating Officer to direct GTI
through its financial restructuring process.
"Our focus on the traditional GTI model, along with added infrastructure and
fulfillment capabilities we're planning, will allow us to return to
profitability," Hjerpe stated. "The evolving wholesale technology marketplace
needs a company such as GTI to partner with customers and vendors to bring
increased supply chain efficiencies. We believe that our 13 years of knowledge
and leadership will allow us to deliver technology products more efficiently and
effectively than ever before."
Appelhof said that GTI has begun discussions with its major vendors and expects
them to support GTI during the reorganization process. He also reported that GTI
is negotiating the terms of debtor-in-possession (DIP) financing that, subject
to court approval, he expects will fund GTI's planned post-petition trade and
employee obligations, as well as its ongoing operating needs during the
restructuring process.
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Statements in this Press Release that are not purely historical are "forward
looking statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements regarding GTI's expectations, hopes, beliefs,
intentions or strategies regarding the future generally. GTI suggests review of
all of its SEC filings, including its quarterly report on Form 10-Q for the
three and nine months ended October 31, 2000. GTI cannot assure that it will
obtain adequate equity or debt financing to sustain or build operations, secure
necessary vendor support and product inventory, successfully reorganize and
emerge from bankruptcy as a going concern, contain its costs or achieve
profitability in the future.
Contact:
Graphics Technologies, Inc., Eden Prairie
John Harvatine, 952/259-6100
