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International Card Establishment Completes Acquisition of GlobalTech Leasing
Company on Track to Reporting $10 million in pro forma Revenues in 2003 and
Expects Growth in Bank Card Business Through Acquisitions and Increased Marketing
Oxnard, California-January 8, 2004--International Card
Establishment, Inc. (OTCBB-ICRD) (I.C.E.) today announced that it had completed its
acquisition of 100% of GlobalTech Leasing, Inc., a closely held
equipment-leasing firm that specializes in financing point-of-sale transaction systems.
Under the terms of the definitive acquisition agreement, GlobalTech Leasing
shareholders received five million shares of restricted I.C.E. common stock
in exchange for their GlobalTech Leasing stock.
"We are extremely pleased to have completed the acquisition of
GlobalTech Leasing," said Jonathan Severn, President & Chairman, I.C.E.
"Bringing GlobalTech Leasing under the I.C.E. umbrella enables us to capture
this leasing company's substantial revenue base - which we expect to
climb from approximately $9 million in calendar 2003 to $12 million in 2004.
More importantly, this acquisition allows us to grow as a vertically
integrated company." "GlobalTech is very happy to become a part of the I.C.E.
family," said Charles Salyer, President and CEO of GlobalTech Leasing. "The
diversity of I.C.E.'s subsidiary companies within the electronic
transaction industry increases GlobalTech's access to new leasing customers.
At the same time, we will operate the company as a separate, stand alone
subsidiary in order to continue providing personalized service to our
existing vendor customers."
Separately, the company announces that its previously announced
acquisition of Worldwide Business Services is expected to close in the near
future. I.C.E.'s existing internal bankcard unit, including Worldwide
Business Services, is on track to generate $3 million in revenues in 2004.
I.C.E. has identified a number of bankcard service companies
(similar to Worldwide Business Services) that it expects to acquire in 2004.
The company believes that it can successfully grow its bankcard
business by acquisition and by increasing internal growth by ramping up its
marketing efforts.
For the year ended December 31, 2003, I.C.E. expects to report
revenues on a pro forma basis of $10 million, with revenues running at an
annualized rate of $12.5 million. At year-end 2004, I.C.E. is projecting $17
million in total consolidated revenues, absent additional acquisitions.
Projected pro forma revenues for 2004 are expected to exceed $20 million with
additional acquisitions.
About I.C.E.
I.C.E. (http://www.cardnetone.com/) is a rapidly growing provider
of diversified products and services to the electronic transaction
processing industry. I.C.E. establishes merchant accounts for
businesses that enable them to accept credit cards, debit cards
and other forms of electronic payments; supplies point-of-sale
systems; facilitates processing; and markets a proprietary “Smart
Card"-based system – which allows gift and loyalty functions to be
stored on one card -- that enables merchants to offer
store-branded gift and loyalty cards.
Forward-Looking Statements
This press release may contain forward-looking statements that are
subject to risks and uncertainties. Important factors which could
cause actual results to differ materially from those in the
forward-looking statements, include but are not limited to: the
company's short operating history which makes it difficult to
predict its future results of operations; the company's initial
history of operating losses with possible future losses which
could impede its ability to address the risks and difficulties
encountered by companies in new and rapidly evolving markets; the
company's future operating results could fluctuate which may cause
volatility or a decline in the price of the company's stock; the
possibility that the company may not be able to price its services
above the overall cost causing its financial results to suffer;
and other factors detailed in this press release and in future
company filings with the Securities and Exchange Commission, at
such time as the company is required to report its results of
operations under the Securities Exchange Act of 1934, as amended.
Investor Relations Contact:
PAN Consultants, Ltd.
Philippe Niemetz,
toll-free: 800/477-7570
212/344-6464
email: p.niemetz@panconsultants.com
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