ANAHEIM, Calif., Nov. 11, 2004 (PRIMEZONE) -- Gateway International Holdings, Inc. (Pink Sheets:GWYI) announced today that the two largest shareholders in the Company, CEO Larry Consalvi and COO Joseph Gledhill, have each decided to cancel 6,000,000 shares of their Gateway International Holdings stock. The total shares being retired equals 12,000,000 shares, or approximately 36.4% of the outstanding common stock. Neither Mr. Consalvi nor Mr. Gledhill received any consideration for the cancellation of their shares.
The Company currently has 32,966,000 shares outstanding. With the retirement of the 12,000,000 shares announced today the total outstanding shares will be 20,966,000.
Gateway International's CEO, Larry Consalvi, commented on the share retirement, "We decided to retire these shares to allow the Company to be in an advantageous position in the implementation of our acquisition schedule. Our goal is to acquire companies that add value to our enterprise and that will be accretive to earnings. Using these shares for acquisitions will help us meet these goals and also allow for growth in earnings without dilution to current shareholders. By giving these shares back to the Company to use for future acquisitions, we feel that we can accelerate earnings growth and create significant shareholder value."
He concluded by saying, "Reducing the number of outstanding shares, coupled with the strong profitability at Elite Machine Tool Company and Eran Engineering, which we recently reported in our year-end results, will allow the Company to increase its earnings per share. Additionally, with the recent addition of All American CNC Sales and A-Line Capital and the earnings that they will add in future reports, I believe that we are well positioned to increase earnings per share at an accelerated rate in the future."
About Gateway International Holdings, Inc.
Gateway International Holdings, Inc. (Pink Sheets:GWYI) is a diversified holding company that operates through its wholly-owned subsidiaries. The company currently has 4 subsidiaries in operation including: Eran Engineering, Inc., Elite Machine Tool Company, Inc., All American CNC Sales, Inc. and A-Line Capital Corporation. Eran Engineering manufactures specialized components for numerous clients in the aerospace and defense industry with a focus on commercial and military aircraft. Elite Machine Tool Company and All American CNC Sales are sales and marketing companies focused on Computer Numerically Controlled (CNC) machine sales. A-Line Capital is a financial services firm that primarily serves in a broker capacity for consumers that seek to finance the purchase and/or lease of new/used machinery and equipment.
"SAFE HARBOR" NOTE:
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein; however, readers should carefully review reports or documents the Company files from time to time with the Securities and Exchange Commission.