CALGARY, Canada, Nov. 29, 2002 (PRIMEZONE) -- Cybersurf Corp. ("Cybersurf") (TSX Venture Exchange:CY), one of Canada's leading Internet technology companies, today announced that its shareholders elected the incumbent directors for another year at its Annual General Meeting (the "Meeting") of shareholders held in Toronto on November 27, 2002.
"We are happy that our shareholders have given our Board and management a mandate to continue to work to deliver value in the coming months," says Paul Mercia, Cybersurf's President and CEO. "The attempt by a dissident shareholder to replace the Board necessitated a costly and time-consuming ordeal but our shareholders have endorsed the current Board and we are once again free to work without distraction on the business at hand."
By way of press release dated November 28, 2002, the dissident shareholder, Mercury Partners & Company Inc., announced that it will bring an application under the Alberta Business Corporations Act for a review of the vote held at the Meeting. Management is confident that the extensive procedures and safeguards put in place to ensure a fair and accurate vote will stand-up to judicial scrutiny and looks forward to closure on the matter so that it can focus singularly on implementing the business plan of Cybersurf for the benefit of all shareholders, including Mercury Partners & Company Inc.
Cybersurf also reported financial results for the three months ended September 30, 2002. The company, which develops Internet-related software products and services and operates one of Canada's leading Internet services, ended the first quarter of fiscal year 2003 with revenues of $1,684,973, a 52% increase over the same period in the prior fiscal year. Operating revenues from 3web Corp. rose 71% when compared to results for the same period last fiscal year. Cybersurf's balance sheet remained strong with working capital of $ 7.5 million at September 30, 2002.
"We are working hard to make progress through the expansion of our 3webXS dial-up subscriber base and through the deployment of new revenue-generating services such as long distance and high-speed Internet access," said Paul Mercia. "We believe that by properly executing these initiatives and by attaining the milestones we have set for ourselves we will be able to achieve profitability and create long-term value for our shareholders."
Cybersurf's most noteworthy achievement in the first quarter of 2003 was the completion of third-party Internet access agreements with two of Canada's largest cable providers in anticipation of a national rollout of its new 3web high-speed Internet service. These provision agreements will enable Cybersurf to provide a premium-quality high-speed Internet service at an extremely competitive price to approximately 3 million Canadian households. Like its dial-up counterpart 3webXS, Cybersurf's new cable Internet service will meet required profit margins to contribute to the company's path-to-profitability.
YEAR TO DATE FINANCIAL SUMMARY
3 months ended 3 months ended
September 30, 2001 September 30, 2002
Cash & Prepaid
Communication services $7,188,821 $11,759,846
Working Capital $7,528,425 $11,286,669
Revenues from all Sources $1,684,973 $1,105,492
Operating Revenue $1,654,195 $967,674
Earnings/(Loss) $(1,241,634) $(1,897,946)
Earnings/(Loss) per Share ($0.04) ($0.06)
Fiscal 2003 Highlights
-- Increased operating revenues by 71% compared to prior year
results.
-- Launched 3webTLC, a value added service designed to improve
customer service and broaden revenue sources.
-- Launched 3webLD, offering North American and international long
distance rates below those of the major long distance providers.
-- Signed third-party Internet access agreements with two of Canada's
largest cable providers in anticipation of a national rollout of
its new 3web high-speed Internet service.
Fiscal 2003 Outlook
-- Continue to grow the 3web subscriber base organically and through
acquisitions.
-- Continue to develop complementary products and services such as a
residential High Speed service, Commercial High Speed services and
Hosting to expand the Company's revenue growth.
-- Continue to develop and release specialized Internet software
technologies and seek licensing opportunities worldwide.
About 3web Corp.
3web Corp. is Canada's largest independent Internet service provider, having served hundreds of thousands of Canadians from coast to coast since 1998. Through its 3webXS service, 3web provides its subscribers with premium, unlimited Internet access at a fraction of the cost of other competing services.
3web provides service in 30 major centres including Barrie, Calgary, Chicoutimi, Edmonton, Gatineau (formerly Hull), Guelph, Halifax, Hamilton, Kingston, Kitchener, London, Montreal, Newmarket, Oshawa, Ottawa, Peterborough, Quebec City, Saint John, St. Catharines, St. Jerome, St. John's, Sherbrooke, Sudbury, Thunder Bay, Toronto, Trois Rivieres, Vancouver, Victoria, Windsor and Winnipeg.
Canadians are invited to visit www.get3web.com to download the latest version of the 3webXS software.
3web also operates a national long distance service under the brand 3webLD.
About Cybersurf Corp.
Cybersurf operates through two separate wholly owned subsidiaries, Cybersurf Technologies Corp. and 3web Corp. Cybersurf Technologies Corp. is responsible for the development of Internet-related software products and services, and for all implementation and licensing initiatives pertaining to these unique technologies. The software developed by Cybersurf Technologies Corp. creates revenue opportunities for any Internet company focused on client acquisition, content delivery or advertising revenue, elements vital to any company in the Internet sector.
3web Corp. utilizes Cybersurf Technologies Corp.'s products and services in its national Internet service. 3web Corp. is the first business model to showcase the various proprietary software applications developed by Cybersurf Technologies Corp.
Forward-Looking Statements: This news release may contain certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cybersurf does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.
For more information about Cybersurf and 3web, please visit www.cybersurf.com and www.3web.com.
Cybersurf's common shares trade on the TSX Venture Exchange (TSX Venture:CY).
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
For more information, please contact: investor.relations@cybersurf.com.