EXHIBIT 99.1
PRESS RELEASES
Release Date: 08/03/2000
UBNETWORKS FOCUSES RESOURCES ON CORE BUSINESS
IRVINE, CA--(BUSINESS WIRE)-August 3, 2000-Universal Broadband Networks
(NASDAQ:NM:UBNT), an emerging integrated communications provider, announced
today several recent decisions and steps undertaken to focus the Company's
resources on its core business.
"After careful consideration of means for ensuring that UBNetworks is optimally
positioned to grow and succeed in the 21st century, we have made the business
decisions to focus on the core of business of offering a full range of wireline
based voice and data services with products that will be attractive to small and
medium sized businesses", stated CEP Michael A. Sternberg. "While we secure the
financing needed to grow the business it is imperative that we eliminate all
costs that do not directly benefit growing the core. With that focus, it is
necessary to close or sell the Company's satellite operations and Man Rabbit
House."
UBNetworks President and COO, Nancy Hobbs, commented: "Man Rabbit House
operations were largely terminated as of Tuesday, August 1, following the
breakdown of negotiations for the sale of the business. A reduced staff is
providing for the orderly transition of hosting operations to alternative
providers and the windup of development projects."
With respect to the satellite offices and wireless and ISP operations which are
not directly related to our new product and service strategy, Mr. Sternberg
remarked: "We are currently exploring opportunities to secure buyers for these
businesses. There are several parties who have been in discussions with the
Company about purchasing operations in one or more of those locations. If we are
unable to sell these businesses, we are targeting to close them effective
September 1, 2000."
Sternberg stated further that "This is a move that is dictated by business
criteria including the need to focus all human and financial resources at our
disposal on successful services delivery over our new, state of the art network,
and the necessity to curtail activities and expenditures which distract from our
core business and its growth. The company must define itself to garner
investment. The satellite operation, including Man Rabbit House, are not core to
our future, are absorbing valuable resources that must be applied to the core;
and we have therefore begun to eliminate them. The financial benefit to UBN is
substantial and immediate. Management will continue to move swiftly to refocus
and maximize results in a time span not before experienced in this sector."
Prior to the closure of Man Rabbit House, both that organization and the
satellite wireless operations have consistently lost money despite award-winning
quality work and technical excellence, and became increasingly divergent from
the core business of UBNetworks.
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UBNetworks provides integrated broadband communications as a facilities-based
competitive local exchange carrier, offering 21st Century communication products
and services to business and residential customers. The Company's high-speed
integrated services network will offer world-class performance from a flexible
line of products and services to fit any broadband or voice need. The Company
provides wired and wireless broadband communications over Digital Subscriber
Line and other "last mile" technologies, offering performance many times faster
than common dial-up modems, through the Company's direct response, direct sales
and value-added reseller channels. The Company's customer base is expected to
grow rapidly as the network is expanded multi-regionally. The Company's growth
has resulted from aggressive marketing and sales, internal development,
acquisitions, and strategic alliances.*
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. INVESTORS ARE CAUTIONED THAT SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES, INCLUDING, WITHOUT LIMITATION, CONTINUED ACCEPTANCE OF THE
COMPANY'S PRODUCTS, SUBSCRIBER GROWTH, PRODUCT DEMAND, COMPETITION, AND OTHER
RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S PERIODIC
REPORTS, INCLUDING QUARTERLY REPORTS ON FORM 10-Q AND ANNUAL REPORTS ON 10-K.
THIS AND ADDITIONAL INFORMATION CAN BE FOUND ON THE COMPANY'S WEB SITE AT
www.ubnetworks.com OR CAN BE OBTAINED FROM THE COMPANY UPON REQUEST.
For Information Contact:
IJNT.NET, INC.
Investor Relations
Phone: (949) 260-8100
Fax: (949) 261-2714
2030 Main St., 5th Floor
Irvine, CA 92614
[email protected]
