APPLIED DIGITAL SOLUTIONS AGREES TO ACQUIRE INTEREST IN ATEC GROUP, INC.
Strategy to benefit ATEC Group's distribution expertise and the procurement
capabilities of Applied Digital Solutions' Intellesale.com unit
PALM BEACH, FLORIDA Nov 03, 2000 - Applied Digital Solutions, Inc. (Nasdaq:
ADSX) today announced that it has agreed to acquire an interest in ATEC Group
(Amex: TEC) from Surinder Rametra, a former officer and director of ATEC. This
action follows a proposed acquisition of ATEC by Applied Digital earlier this
year designed to capitalize on the obvious and abundant synergies with its
Intellesale.com unit.
"ATEC never really fell off our radar screen," commented Richard J. Sullivan,
chairman and CEO of Applied Digital. "At the time, the market was in the midst
of the now infamous 'March Effect'; it just was not an appropriate time for
action. We continued to recognize, though, the ability to strengthen both ATEC
and Intellesale.com by leveraging off the particular strengths of each. ATEC's
excellent distribution channels, including their recently announced strategic
partnership with Computer Associates International, Inc. (NYSE: CA), combined
with Intellesale's ability to locate and procure product effectively make this a
natural relationship. The management teams of each also provide very
complementary styles, offering strong leadership and operational expertise. In
the future, we see this growing into an even more strategic relationship with
significant potential benefits for all of our shareholders."
In conjunction with this action, a new Board of Directors will be assembled to
include Richard Sullivan, James J. Charles, CFO of ATEC, Tony Rametra, President
of ATEC, and two new outside Directors. Tony Rametra will also be named CEO of
ATEC Group.
About Intellesale.com
---------------------
Intellesale sells refurbished and new computer equipment and related components
through its website at www.intellesale.com as well as through traditional
channels which Intellesale is migrating to the Internet. Applied Digital
Solutions previously announced its intent to offer Intellesale.com to the public
through an IPO as part of a strategic restructuring program designed to divest
those units that did not fit with its focus as one-stop e-solutions provider.
About ATEC Group, Inc.
----------------------
Based in Commack, New York, ATEC Group, Inc., is a leading system integrator and
provider of a full line of information technology products and services. As a
one-stop company for the computer needs of businesses, government agencies and
educational institutions, ATEC Group offers computer hardware and software,
system integration networking, graphic arts, Internet and Intranet. The company
is positioned for growth through its capabilities as a PC manufacturer of Nexar
technology, in software development and e-commerce. For more information, visit
the company's website at http://www.atecgroup.com.
About Applied Digital Solutions
-------------------------------
Applied Digital Solutions is a leading edge, single-source provider of
e-business solutions. The company differentiates itself in the marketplace by
enabling e-business through Computer Telephony Internet Integration (CTII). With
five-year growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions is
ranked as the fifth fastest-growing technology company by Deloitte & Touche in
its 1999 Technology Fast 500 listing. For more information, visit the company's
web site at www.adsx.com.
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Statements about the Company's future expectations, including future revenues
and earnings, and all other statements in this press release other than
historical facts are 'forward-looking statements' within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as that term is defined in the Private Litigation Reform Act of 1995.
The Company intends that such forward-looking statements involve risks and
uncertainties and are subject to change at any time, and the Company's actual
results could differ materially from expected results. The Company undertakes no
obligation to update forward-looking statements to reflect subsequently
occurring events or circumstances.
ADS Investor Relations: Robert Jackson, 561-366-4800, 561-366-8591,
[email protected] Media Contact: Matthew Cossolotto, Ovations International,
914-245-9721, [email protected]
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