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Exhibit 99.1
FOR IMMEDIATE RELEASE
EQUALNET ANNOUNCES THAT IT WILL NOT BE ABLE TO FILE ITS ANNUAL REPORT WHEN
DUE FOR ITS FISCAL YEAR ENDED JUNE 30, 2000.
HOUSTON --- SEPTEMBER 20, 2000 --- Equalnet Communications Corp. (OTC: BB:
ENET) announced today that it will not be able to file its annual report on
Form 10-K for its fiscal year ended June 30, 2000, when due on September 28,
2000, with the Securities and Exchange Commission (the "Commission"). As
previously announced the Company's independent auditors resigned in June
2000, and since their resignation the Company has been unable to retain a
suitable replacement. In addition to lacking outside auditors, the Company
does not at this time have the financial or human resources necessary to
prepare and file its annual report with the Commission. To complete and file
the 10-K by its due date the Company would have to incur significant
additional costs to hire outside consultants to compile information
ordinarily compiled by employees of the Company. Moreover, the operating
budget of the Company, as approved by the bankruptcy court, does not provide
for funds to engage outside consultants to gather information, independent
accountants to prepare the audited financial statements or funds to print and
distribute the annual report to shareholders.
The Company has submitted a request for a "no action letter" from the
Commission requesting the Company be granted the right to modify its periodic
reporting requirements under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). The Company requested that it be permitted to file
with the Commission the monthly operating reports that will be submitted by
the Company to the bankruptcy court in lieu of filing the annual and
quarterly reports required by the Exchange Act. Although, there is no
assurance that the Commission will permit the Company to modify its periodic
reporting requirements, the Company will not be able to file its Annual
Report on Form 10-K with the Commission by September 28, 2000.
This news release includes statements that may constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. This information may involve risks
and uncertainties that could cause actual results to differ materially from
such forward-looking statements. Facts that could cause or contribute to
such differences include, but are not limited to, factors detailed in the
Company's Form 10-K and other filings of the Company with the Commission.
Contact: Mitchell H. Bodian, Equalnet Communications Corp. 281.529.4602.
