EXHIBIT 99.1
NEWS- FOR IMMEDIATE RELEASE
September 21, 2000
FOR FURTHER INFORMATION CONTACT:
Thomas B. Olson, Secretary
(303) 796-8940
EQUITEX AND IGCA AGREE TO
TERMINATE NMORTGAGE MERGER
Englewood, Colorado and Palm Beach Gardens, Florida . . . Equitex, Inc. (NASDAQ:
EQTX) announced today it has mutually agreed with Innovative Gaming Corporation
of America ("IGCA") to terminate the previously announced merger of Equitex's
majority owned subsidiary, nMortgage, Inc., with IGCA.
"Given the rescission of the FBMS transaction and our recent acquisition of
Meridian Residential Group, we agreed with IGCA that moving forward with the
merger was not in the best interest of either company," said Equitex President,
Henry Fong. "While we had been in the process of restructuring nMortgage and
FBMS from traditional mortgage lending to Internet based operations, the
acquisition of Meridian and their Internet focused business requires additional
time to implement a cogent B to B and B to C business plan for the two
companies. As we move forward, we will continue to consider strategic
alternatives for the integrated nMortgage and Meridian business."
Equitex, Inc. is a holding company currently operating through its wholly owned
subsidiary First TeleServices Corp. of Atlanta, Georgia and its majority-owned
subsidiaries nMortgage, Inc. and Triumph Sports, Inc. of Palm Beach Gardens,
Florida. nMortgage offers mortgage loan products through the Internet and
provides consulting services to the mortgage industry. First TeleServices Corp.
is a financial services marketing company marketing various financial products
targeted to the sub-prime consumer.
The statements included in this press release concerning predictions of economic
performance and management's plans and objectives constitute forward-looking
statements made pursuant to the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. These statements involve risks and uncertainties that
could cause actual results to differ materially from the forward-looking
statements. Factors which could cause or contribute to such differences include,
but are not limited to, factors detailed in Equitex's Securities and Exchange
Commission filings; completion of due diligence, shareholder approval,
regulatory approvals and certain other pre-closing conditions for all incomplete
merger or acquisition transactions; economic downturns affecting the operations
of the Company, its subsidiaries or companies proposed for merger or
acquisition; the termination of previously announced acquisitions; delays or the
inability to obtain regulatory approvals for previously announced acquisitions;
the inability to initiate or complete any contemplated restructuring, offering,
acquisition, disposition or other transaction; and the unavailability of
financing to complete management's plans and objectives. The forward-looking
statements contained in this press release speak only as of the date hereof and
the Company disclaims any intent or obligation to update these forward-looking
statements. # # # #
