News from
Yellowave Corp.
-----------------------------------
For Immediate Release
Yellowave Corp. and Shareholders Move to
Rescind Newtech Broadwidth Deal
LOS ANGELES, August 21, 2000 -- Yellowave Corp. (AMEX: YW) announced today that
the company and three of its principal shareholders have obtained a temporary
restraining order in U.S. District Court and filed a complaint that seeks to
rescind a transaction between the company and Newtech Broadwidth Ltd. and its
shareholders.
The temporary restraining order, granted by Judge Ronald Lew, is based on claims
that the transaction with Newtech Broadwidth involved misrepresentations made by
Prosper Abitbol and several of his associates. The order bars Mr. Abitbol and
his associates from taking any actions in the company's name. Yellowave is
seeking to resolve the matter amicably, and discussions to that end have
commenced.
Laura Ballegeer, the company's Chief Operating Officer, said that the company
will delay a previously-announced 50% stock dividend to shareholders, in the
form of a 3-for-2 stock split, which was to have been paid Aug. 31 to
shareholders of record on Aug. 24.
The temporary restraining order was sought by Yellowave Corp. and Laura
Ballegeer, Ron Oren and Shera Corp., major shareholders.
An incubator of high-tech companies, Yellowave is committed to acquiring
companies with leading-edge technologies and operating revenues. Yellowave has a
special focus on companies emerging from the very active science and technology
community in Israel, and is currently in advanced negotiations with several
Israeli wireless and telecommunications companies.
This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The company's actual results
could differ materially from those anticipated in such forward-looking
statements.
end
Contacts: Laura Ballegeer, Yellowave Corporation
310-979-8055
Alexander Auerbach, Auerbach & Co. Public Relations
800-871-2583 or [email protected]
ALEXANDER AUERBACH & CO., INC.
PUBIC RELATIONS o MARKETING COMMUNICATIONS
3887 DIXIE CANYON AVE. o SHERMAN OAKS, CA 91423-4389
TEL: (800) 871-2583 o FAX: (818) 501-7825 o www.AAPR.COM:
