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EXHIBIT 99.1
[QUENTRA LOGO]
Tony Squeglia
Quentra Networks
(310) 235-0328
[email protected]
QUENTRA SIGNS DEFINITIVE AGREEMENT
TO ACQUIRE HOMEACCESS
Quentra receives commitments for an additional $9.5 million to launch
deployments this quarter for HomeAccess services.
Los Angeles, CA - October 10, 2000 - Quentra Networks, Inc. (Nasdaq: QTRA) today
announced that it has signed a definitive agreement with HomeAccess MicroWeb,
Inc. and DQE Enterprises (parent, NYSE: DQE) to acquire 100% of HomeAccess for
4.4 million shares of Quentra preferred and common stock. In addition,
HomeAccess shareholders, including DQE Enterprises, have the potential to
receive $10 for each new HomeAccess customer over a period of four years, not to
exceed 5.6 million customers. At the time of closing, DQE Enterprises will
invest $1.5 million in HomeAccess. Quentra also announced that it has received
commitments for an additional $9.5 million in capital, subject to the closing of
the HomeAccess transaction, to facilitate deployments beginning in the current
quarter. The funds from the private stock sale will become available upon
closing of the merger, which is scheduled to occur on or about October 12, 2000
and is subject to certain closing conditions.
As previously announced, HomeAccess will create local e-commerce networks in
concentrated geographic markets using low-cost Internet appliances, such as Web
phones and PDAs.
"We are pleased to have made significant progress over the past six months in
acquiring the technology and developing the corporate partnerships necessary to
pursue several deployments this fall," said James R. McCullough, Chief Executive
Officer, Quentra Networks. "Our goal continues to be to provide bundled
e-commerce and telecommunication services for millions of customers, including
those of our corporate partners."
Jerry Conrad, Chief Executive Officer of HomeAccess MicroWeb states, "Most main
street businesses, and typical households, conduct more than 80% of their
commerce with businesses found within a five mile radius of their home or
office. The HomeAccess solution enables local retail businesses to connect with
customers without requiring the business to have a traditional computer-hosted
Web site. Regional mall operators, grocers, and utilities, as well as other
merchants, will now be able to offer secure Internet e-commerce services to
their customers using simple, low-cost Internet appliances, including Web
phones, allowing consumers to transact business whenever and wherever they
want."
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To fund and implement this strategy and obtain the necessary working capital,
Quentra has received commitments for approximately $9.5 million through the
exercise of existing warrants and the private sale of 3.2 million shares of
common stock and 800,000 warrants to enable the Company to accelerate the launch
of its initial deployments in cities such as Seattle, Portland, Las Vegas, Reno
and Pittsburgh. The transaction represents a restructuring of the previously
announced merger of Quentra and HomeAccess.
Pursuant to the restructured transaction, HA Technologies, an affiliate of the
current HomeAccess shareholder and of DQE Enterprises, will license the
HomeAccess technology on an exclusive basis in states other than Washington,
Nevada, Oregon and Pennsylvania, in which the initial HomeAccess deployments
would occur. As part of this transaction, Quentra has an option, exercisable for
18 months, to acquire HA Technologies for 9,000,000 shares of Quentra common
stock and warrants to purchase 3,800,000 shares of Quentra common stock at an
exercise price of $8.64 per share. If DQE Enterprises has not invested an
additional $8 million in HA Technologies, such option price would be reduced by
40 percent.
As of the closing, three new members will be appointed to the Quentra Board,
including Mr. Conrad and two members designated by DQE Enterprises.
ABOUT QUENTRA NETWORKS, INC.
Based in Los Angeles, CA, Quentra Networks, Inc. (Nasdaq: QTRA), provides
international long distance services and is positioned to deliver local,
residential Internet services, including secure e-commerce applications using
Internet appliances such as Web phones and wireless PDAs. For more information,
please visit the Company's Web site: www.quentra.net or call 1-310-235-0310.
ABOUT HOMEACCESS MICROWEB, INC.
Based in Irvine, CA, HomeAccess MicroWeb, Inc. develops and markets business
concepts and software systems that enables residential consumers to connect with
multiple Internet services and local vendors. Consumers are provided with a
"personal portal" to local electronic content and services, including local and
long distance calling, messaging, news and information, financial services, bill
presentation and payment, travel and entertainment, directory search, shopping
and personal productivity services. For more information, please visit the
Company's Web site: www.homeaccess.net, or call 1-949-588-5100.
ABOUT DQE ENTERPRISES, INC.
DQE Enterprises is a wholly-owned subsidiary of publicly traded DQE, Inc. (NYSE:
DQE) a growth utility, delivering essential products, including electricity,
water, gas and communications, to more than one million customers throughout the
United States. DQE Enterprises, an early stage investor in HomeAccess, acquires,
develops and invests in businesses involved in energy services, communications
and electronic commerce. DQE Enterprises' companies use technology to enable
customers to derive greater value from essential services and help utilities
extend their business reach by better utilizing their customer base and
technology infrastructure. For more information, please visit the Company's Web
site: www.DQE-Enterprises.com.
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The statements in this news release may be considered "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve known and unknown risks and uncertainties, which may cause
the Company's actual results in future periods to be materially different from
any future performance suggested in this news release. Readers are cautioned not
to place undue reliance on these forward-looking statements that speak only as
of the date hereof. The Company undertakes no obligation to publicly release the
result 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 complete information, please refer
to the Company's Form 10-K, Form 10-Q and other filings with the SEC.
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