Investor contact:
Cindy Wyrick
VP, Investor Relations
SoftNet Systems, Inc.
415-343-2325
[email protected]
Media contact:
Gloria Parrish
Director, Corporate Communications
SoftNet Systems, Inc.
415-365-2514
[email protected]
SoftNet to Discontinue Operations of Aerzone Corporation Subsidiary
San Francisco, California, December 19, 2000 - SoftNet Systems, Inc.
(Nasdaq: SOFN) today announced it plans to discontinue operations of its Aerzone
Corporation (Aerzone) subsidiary. It will look for buyers for Laptop Lane, Ltd.,
Aerzone's business center division and will cease operations of Aerzone's
wireless businesses within the next few weeks. The plan includes a reduction in
force.
Separately, SoftNet announced changes to its Board of Directors. Dr.
Lawrence B. Brilliant, who recently resigned as chief executive officer due to
health concerns, resigns from the board effective immediately. Garrett J.
Girvan, SoftNet's chief executive officer, has been elected chairman of the
Board of Directors. In addition, SoftNet has named Jeff Bowden, executive vice
president, Strategic Integration at Pacific Century CyberWorks, to its Board of
Directors. He joins PCCW's George Chan who remains a member of SoftNet's board.
SoftNet's chairman and chief executive officer, Garrett J. Girvan,
said, "The Board of Directors' decision reflects the company's focus on
maximizing the value of its cash and other assets. SoftNet has taken a hard look
at the financial needs of the Aerzone business and determined that it would need
significantly greater total capitalization than we originally projected. Due to
the significant shift in capital markets and their reluctance to embrace
start-up initiatives, it was determined that it was not likely that Aerzone
could raise the necessary capital to sustain its operations over the long term,
and that terminating formal operations would be the most prudent action for
shareholders."
Aerzone, which was founded in February 2000 as SoftNet Zone, sought to
capitalize on the nascent wireless broadband marketplace by targeting the mobile
business professional in locations such as airports and convention centers.
SoftNet acquired Laptop Lane at that time as part of its initial contribution to
the Aerzone initiative.
SoftNet intends to take a charge for the discontinued operations, and
will re-schedule its planned fourth quarter conference call to January 16,
2001in order to reflect this development. The company has filed with the
Securities and Exchange Commission under Rule 12b-25 to defer the filing of its
10-K until January 12, 2001.
In addition, SoftNet's Board of Directors voted to cease its stock
re-purchase program. To date, the company has re-purchased approximately 2.2
million shares of common stock under the buyback authority. About SoftNet
Systems, Inc.
In addition to Aerzone, SoftNet wholly owns Intelligent Communications
(Intellicom). Intellicom combines Internet services with sophisticated two-way
satellite technology to deliver a turnkey solution for ISPs, schools,
corporations and businesses.
For further information about SoftNet Systems, Inc. please visit
www.softnet.com or call 415-365-2500.
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This press release contains forward-looking statements concerning SoftNet
Systems' anticipated future operating results, future revenues and earnings or
adequacy of future cash flow. (These forward-looking statements include, but are
not limited to, statements containing the words "expect", "believe", "will",
"may", "should", "project", "estimate" and like expressions, and the negative
thereof.) These statements are subject to risks and uncertainties that could
cause actual results to differ materially from the statements, including the
risks attendant to a growing business in a new industry as well as those risks
described in SoftNet Systems' Quarterly or Annual Report.
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