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Exhibit 99.1
June 26, 2000
ATTACHMENT
Prime Capital Corporation ("Prime") has announced that Prime and Finantra
Capital, Inc. ("Finantra") have discontinued negotiations for the purchase of
all of the issued and outstanding common shares of Prime. As previously
reported, the Letter of Intent executed by the parties on February 8, 2000
and amended on March 31, 2000 expired prior to the satisfaction of certain
contingencies. Prime and Finantra had been negotiating continuously and
diligently to reach an agreement and satisfy such contingencies but were
unsuccessful.
As a result of the prolonged negotiations with Finantra and cash flow
problems, the Company has failed to timely file its Form 10-K and 10-Q and
does not anticipate making such filings in the near future.
Further, Prime and its advisor Development Specialists, Inc. have expended
substantial efforts to work out various arrangements with its creditors and
are still considering all alternatives including a liquidation of Prime's
assets. The Company has reduced its workforce by approximately 50% to
minimize Prime's expenses during this period.
Prime is one of the nation's largest independent publicly-held providers of
capital and specialty finance services primarily to the software
communications and healthcare industries.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain of the statements contained herein,
which are not historical facts, may contain forward-looking statements with
respect to events, the occurrence of which involve risks and uncertainties.
These forward-looking statements may be impacted, either positively or
negatively, by various factors.
