FTS Signs Binding Letter of Intent to Acquire Profitable Wireless Company10 October 2005
FTS Group, Inc. (OTC BB: FLIP), a publicly traded
acquisition and development company operating in the wireless industry
through its wholly owned subsidiary FTS Wireless, Inc., today announced the
signing of a binding letter of intent of acquire a profitable
Pennsylvania-based Wireless Company in a cash and stock deal valued at $5.5
million.
FTS Group CEO Scott Gallagher commented, "We're pleased to have secured
what is in my opinion, the most significant opportunity FTS has entered
into. We have signed a binding letter of intent to acquire a privately held
Wireless Company with an exciting future and a strong 20-year record of
consistent profitable growth. Subject to receipt of audited financials, the
target Company is expected to post audited 2004 cash-flow of approximately
$691,427 on sales of around $4.2 million and 2005 un-audited cash-flow of
approximately $1.282,357 on sales of $4.8 to $5 million." The audits are
expected to be completed before the deal is closed. FTS plans to close the
acquisition within 60 days, Gallagher went on to say, "We plan to roll this
acquisition into the newly formed FTS Wireless, Inc. (Nevada) along with
the retail wireless business of FTS Wireless. If closed we expect the
combined Company to generate 2006 sales of around $7 to $8 million with
$1.9 to $2.3 million of net income."
Due to confidentiality agreements, FTS will not release the name of the
target Company until the deal closes. FTS expects to secure financing
through a private placement of new shares in FTS Wireless, Inc.
About FTS Group, Inc.
FTS Group Inc. (OTC BB: FLIP) is an acquisition and development Company
focused on acquiring, developing and investing in emerging cash-flow
positive Companies and viable business ventures. Its wholly owned
subsidiary FTS Wireless is an emerging regional operator of retail wireless
locations that market and sell next-generation wireless products and
services and operate Wi-Fi HotSpots. FTS Wireless currently operates a
chain of retail wireless locations in the Florida Gulf Coast region. For
additional information about FTS Group, Inc. or its subsidiary, please
visit our web site http://www.FTSWireless.com or review periodic filings
with the Securities and Exchange Commission at http://www.sec.gov.
Forward-Looking Statements
Included in this release are certain "forward-looking" statements,
involving risks and uncertainties, which are covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
including statements regarding the Company's financial performance. Such
statements are based on management's current expectations and are subject
to certain factors, risks and uncertainties that may cause actual results,
events and performance to differ materially from those referred to or
implied by such statements. In addition, actual future results may differ
materially from those anticipated, depending on a variety of factors, sales
and earnings growth, ability to attract and retain key personnel, and
general economic conditions affecting consumer spending, including
uncertainties relating to global political conditions, such as terrorism.
Information with respect to important factors that should be considered is
contained in the Company's Annual Report on Form 10-K as filed with the
Securities and Exchange Commission. Readers are cautioned not to place
reliance on these forward-looking statements, which speak only as of the
date hereof.
Contact:
FTS Wireless, Inc.
Scott Gallagher
CEO
(215) 688-2355
Email Contact
SOURCE: FTS Group, Inc.
Source: Marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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