LONDON and NEW YORK, Nov. 16, 2004 (PRIMEZONE) -- MailKey Corporation (OTCBB:MAKY) ("MailKey") today confirmed that it has entered into a definitive agreement to acquire iElement, Inc. ("iElement"), a Dallas, Texas based communication service provider.
Tim Dean-Smith, CEO of MailKey, said, "The proposed acquisition of iElement is a substantial strategic step for MailKey. iElement has an established sales and distribution footprint in the United States, and a management and marketing team which has been developed from the inception of iElement by CEO Ivan Zweig."
Ivan Zweig, CEO of iElement, said, "iElement has a well-established customer base already in place, and we are expecting sales of over $5 million dollars for the calendar year 2004. I believe that merging with MailKey will enhance iElement's ability to continue and increase its rapid organic sales growth, and also greatly enhance the ability to make acquisitions to accelerate expansion."
iElement is a facilities-based nationwide communications service provider that provides state-of-the-art telecommunications services to small and medium sized enterprises ("SMEs"). iElement provides broadband data, voice and wireless services using integrated T-1 lines with a Layer 2 Private Network solution to provide SMEs with dedicated Internet access services, customizable business solutions for voice, data, wireless and Internet, and secure communications channels between the SMEs' offices, partners, vendors, customers and employees without the use of a firewall or encryption devices. iElement has a network presence in 18 major markets in the United States, including facilities in Los Angeles, Dallas, and Chicago. For more information on iElement, please visit http://www.ielement.com/home.
Mr. Dean-Smith said, "Ivan has an excellent team, and the iElement growth strategy is very exciting. In addition to iElement having an aggressive growth plan, it has good synergies with MailKey. iElement will provide a direct channel to market in the U.S. for MailKey's message security and management technology while providing a comprehensive value-added network solution to its customers. I am looking forward to helping drive the future growth, and will be pursuing additional complementary acquisitions once we have completed the iElement transaction."
Completion of the merger is subject to customary closing conditions, including receipt by the parties of all necessary board and shareholder approvals and third party consents, and the completion by MailKey of its due diligence review of iElement to its satisfaction. There can be no assurance that these conditions will be met, that MailKey's due diligence review of iElement will be satisfactory, or that the merger will be completed.
About MailKey Corporation
MailKey is a messaging security and management company. It is developing its Message Manager and Envoy technology platforms to enable scaleable filtration, control and management of messages through a central management point. For more information, visit http://www.mailkey.com. MailKey's consumer email messaging protection service is available at http://www.emailkey.com.
Safe Harbor Statement
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. The words "estimate," "project," "intends," "expects," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of the Company, see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.