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EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
AUGUST 29, 2000
CONTACTS: BOB MCLEAN
CHIEF FINANCIAL OFFICER
PC SERVICE SOURCE
972.481.4000
MORTI TENENHAUS
PRESIDENT & CHIEF EXECUTIVE OFFICER
PC SERVICE SOURCE
972.481.4000
PC SERVICE SOURCE FILES FOR BANKRUPTCY PROTECTION
Dallas, Texas, August 29, 2000 -- PC Service Source, Inc. (Nasdaq:
PCSS) announced today that the company has filed a voluntary petition for
protection under Chapter 11 of the Bankruptcy Code for the company and all of
its subsidiaries. The petition was filed in the federal bankruptcy court for the
Northern District of Texas, Dallas Division.
Due to the significant losses from the company's discontinued parts
sales division, the company filed for Chapter 11 protection to seek a financial
reorganization of its rapid turnaround desktop and notebook repair business. The
company and it subsidiaries will continue to operate the company's repair
business under the protection of the bankruptcy court while seeking to finalize
a plan of reorganization to implement its anticipated restructuring.
Morti Tenenhaus, the company's president and chief executive officer
commented, "We believe the most effective way to serve our existing customer
base and maximize the future growth of our rapid turnaround desktop and notebook
repair business is to operate in the ordinary course of business under Chapter
11. We continue to believe the combination of our customer base, ability to
timely perform desktop, notebook and component repair services, and our
dedicated employees give us a unique market position. As a result, we will also
continue to work toward securing a strategic or financial partner for the repair
business to enhance its growth potential."
PC Service Source also announced today that it expects to be delisted
from Nasdaq later this week because the company is currently not in compliance
with Nasdaq's continued listing requirements. The company anticipates filing its
10-Q for the three month period ended June 30, 2000 next week.
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS: The Company occasionally makes
forward-looking statements concerning its plans, goals, product and service
offerings, and anticipated financial performance. These forward- looking
statements may generally be identified by introductions such as "outlook" for an
upcoming period of time, or words and phrases such as "should", "expect",
"hope", "plans", "projected", "believes", "forward-looking" (or variants of
those words and phrases) or similar language indicating the expression of an
opinion or view concerning the future. These forward-looking statements are
subject to risks and uncertainties based on a number of factors and actual
results or events may differ materially from those anticipated by such
forward-looking statements. These factors include, but are not limited to, the
Company's ability to continue to operate its rapid turnaround desktop and
notebook repair business under the protection of Chapter 11, the availability of
working capital financing, product supply and dependence on key vendors, as well
as those described under the heading "Caution Regarding Forward-Looking
Statements" in the Company's Report on Form 10-K for the fiscal year ended
December 31, 1999 as it may be updated in any subsequent Report on Form 10-Q,
all as filed with the Securities and Exchange Commission. The Company does not
plan to generally publicly update prior forward-looking statements for
unanticipated events or otherwise and, accordingly, prior forward-looking
statements should not be considered to be "fresh" simply because the Company has
not made additional comments on those forward-looking statements.
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