<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
TUESDAY, JULY 18, 2000
Contact: Mark Perlman
The Weiser Group
312/368-6732
[email protected]
ANICOM ANNOUNCES INVESTIGATION OF CERTAIN ACCOUNTING MATTERS
ROSEMONT, ILL., July 18, 2000 - Anicom, Inc. (Nasdaq: ANIC), today announced
that it is investigating certain accounting matters, including possible
accounting irregularities, which, if confirmed, could result in revision of
previously issued financial statements. In addition, the Company said it
expects to take a charge for its just-concluded six-month transition period,
ended June 30, 2000.
The Company has not yet determined the extent of the revisions and the charges,
nor the allocation of these amounts to prior fiscal periods. However, Anicom
believes that the total effect of these non-cash revisions and charges could be
as much as $35 million on a pre-tax basis. In 1999, Anicom reported revenues of
$537 million and a pre-tax loss of $16.3 million.
The Company announced that its President/CEO and CFO have taken administrative
leave, with pay, pending completion of the investigation. At a special meeting
held on July 17, 2000, the Board of Directors of Anicom appointed the Company's
chairman, Thomas J. Reiman, as interim President and Chief Executive Officer,
and its Vice President of Finance, Daniel Distel, as interim Chief Financial
Officer. The Company also has informed its lenders of the investigation.
More...
Anicom, Inc.
Add One
<PAGE>
"The Board of Directors of Anicom views this matter with the highest degree of
concern. We have assembled an experienced team of internal and external
auditors, accountants and lawyers to investigate this matter with the full
cooperation and support of the Board of Directors and the senior management
team. We are committed to the credibility of our financial statements and to
maintaining strong relationships with our customers, vendors and associates,
which have been a hallmark of our company. We will gather the facts as quickly
as possible. Once all facts have been gathered, we will take prompt, remedial
action to resolve any irregularities. Our shareholders should be assured that
we plan to take all necessary steps to protect our franchise," said Reiman.
Until its investigation is concluded, the company said the 1998 and 1999
financial statements should not be relied upon and that it does not intend to
comment further on this matter.
Anicom, Inc. (Nasdaq: ANIC) is a distribution specialist of multimedia
technology throughout North America. Headquartered in Rosemont, Illinois,
Anicom provides products that "interconnect the InternetSM" and is a leading
participant in commercial and public sector efforts to build digital
communication infrastructure.
In compliance with the Safe Harbor Provision of the Private Securities
Litigation Reform Act of 1995, the company notes the statements contained in
this press release that are not historical facts may be forward-looking
statements that are subject to a variety of risks and uncertainties more fully
described in Anicom's filings with the Securities and Exchange Commission
including, without limitation, those described under "Factors That Could Affect
Our Operations" in Anicom's Annual Report on Form 10-K for the year ended
December 31, 1999. Anicom wishes to caution readers of this press release that
these risks and uncertainties could cause Anicom's actual results in 2000 and
beyond to differ materially from those expressed in any forward-looking
statements made by, or on behalf of, Anicom. These risks and uncertainties
include, without limitation, general economic and business conditions affecting
the industries of Anicom's customers in existing and new geographical markets,
competition from national and regional distributors, the availability of
sufficient capital, Anicom's ability to timely implement its centralized
distribution centers, the timing of customer projects, Anicom's ability to
identify the right product mix and to maintain sufficient inventory to meet
customer demand and Anicom's ability to operate effectively in geographical
areas in which it has no prior experience. The words "will," "believe," "plan"
and words of similar effect used in this press release as they relate to Anicom
or its management are generally intended to identify such forward-looking
statements.
# # #
