News from
YELLOWAVE CORPORATION
For Immediate Release
YELLOWAVE CORP. SETTLES LITIGATION
LOS ANGELES, January 3, 2001 -- Yellowave Corp.(YWVE) announced today that
it has settled an action it had commenced in the U.S. Federal District Court
against Newtech Broadwidth Ltd., Prosper Abitbol and several of his associates.
The settlement required the defendants to return 7,425,000 shares of the
Company's stock. These shares have been remitted to the Company and were
cancelled, completing the settlement agreement.
"We are pleased to have successfully ended this litigation," said Laura
Ballegeer, Yellowave's Chief Operating Officer. "This settlement removes a
significant distraction as management focuses its attention on Yellowave's
future growth."
The settlement agreement culminates more than four months of litigation
stemming from a Share Purchase Agreement entered into between Yellowave and the
defendants. Under the terms of that agreement, Newtech had agreed to be acquired
by Yellowave upon the satisfaction of certain conditions by the defendants.
Yellowave filed the lawsuit alleging that the defendants had committed fraud
in inducing the company to enter into the agreement and that certain conditions
had not been not satisfied. The Company obtained a temporary restraining order
against the defendants on August 21, 2000 safeguarding the company's assets, and
a preliminary injunction on September 25, 2000.
Yellowave is pursuing operating science and technology companies as
acquisition targets.
This press release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Act of 1995.
Expression of future goals and similar expressions reflecting something other
than historical fact involve risks and uncertainties. The actual results the
company achieves may differ materially from any forward-looking statements due
to such risks and uncertainties.
end
Contact: Alexander Auerbach
Auerbach & Co. Public Relations
800-871-2583 or [email protected]
