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Exhibit 99.1
[WHOLETREE.COM LOGO]
WHOLETREE.COM CONTACT:
Tom Foster
Corporate Communications &
Investor Relations
Ph: 719-955-3400, ext. 3404
Email: [email protected]
FOR IMMEDIATE RELEASE
LANGUAGEWARE.NET SEEKS M&A PARTNER OR ADDITIONAL FINANCING
Colorado Springs, Colo., January 5, 2001 - LanguageWare.net Ltd. (OTCBB: LWNTF
and LWNUF), parent company of Wholetree.com, Inc., a provider of technology that
enables multilingual and multi-cultural global business transactions over the
Internet, announced today that it has been unable to date to close a definitive
financing transaction with Catenas Ltd. under which Catenas Ltd. would assume
the funding under an existing line of credit agreement that LanguageWare.net had
previously entered with Technology Fund II Pte, Ltd., a Singapore based venture
fund and shareholder of LanguageWare.net.
Technology Fund II Pte, Ltd. has declined requests for additional draw-downs on
the existing line of credit stating that Languageware.net has failed to meet
performance requirements under the terms of the loan. LangaugeWare.net's board
of directors considers this assertion to be without merit and is making
strenuous effort to negotiate with Technology Fund II to change its position.
Technology Fund II Pte Ltd has verbally indicated its willingness to provide a
limited amount of funds under a new arrangement subject to its approval of a
plan to be prepared by the Company. The Board is also assessing the legal
aspects of the loan commitment. To date LanguageWare.net has received $1.1
Million in proceeds under the $3.0 million loan commitment.
LanguageWare.net is also actively seeking other short-term financing to meet
its immediate operating requirements and is actively exploring other possible
strategic relationships.
Management of LanguageWare.net believes that if it does not obtain adequate
financing to meet its current operating needs by mid January, it will be forced
to cease operations. If by January 15 additional funding has not been obtained,
the Board has approved a plan for the company to retain only a skeleton
technical staff capable of maintaining the integrity of the technology in the
short term, seek a buyer or merger partner and attempt
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to negotiate settlements with its creditors. Any additional funds received from
Technology Fund II would be used to retain an additional number of employees and
extend the period of viability while continuing to seek funding and M&A
opportunities.
ABOUT WHOLETREE.COM INC.
Wholetree.com Inc. enables businesses to communicate, transact and provide
customer support multi-nationally and multi-culturally over the Internet. Its
comprehensive e-business platforms are designed to help companies, their
customers, vendors, suppliers and employees interact with each other in their
native languages and currencies on an international scale. The company is a
wholly owned, U.S. subsidiary of LanguageWare.net Ltd., which was founded in
1988. For additional information, visit the company's Web site at
www.wholetree.com.
Portions of this press release contain historical information and
forward-looking statements. Statements looking forward in time are included
pursuant to the "safe harbor" provision of the Private Securities Litigation
Reform Act of 1995. Such statements involve known and unknown risks and the
Company's actual results in future periods may be materially different from any
future performance suggested herein.
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