LONDON and NEW YORK, Jan. 24, 2005 (PRIMEZONE) -- MailKey Corporation (OTCBB:MAKY) ("MailKey") announced today that it has completed the acquisition of iElement, Inc. ("iElement"), a Dallas, Texas-based communication service provider. The transaction was first announced on November 16, 2004. MailKey issued approximately 47.8 million shares of common stock in exchange for all of the issued and outstanding shares of capital stock of iElement. As a result of the acquisition, MailKey intends to change its name to iElement Corporation, and will apply for a new stock trading symbol.
Ivan Zweig, the Chief Executive Officer of iElement, will join the board of directors of MailKey and replace Tim Dean-Smith as MailKey's Chief Executive Officer. Mr. Dean-Smith remains the Chief Financial Officer and a director of MailKey.
Mr. Zweig said, "I believe that iElement's merger with MailKey will enhance iElement's ability to continue its rapid organic sales growth, while also greatly enhancing iElement's ability to make strategic acquisitions of complementary companies. iElement achieved estimated gross revenues in excess of $5 million for 2004, and it is my goal to help iElement increase sales as rapidly as possible from this level."
Mr. Dean-Smith said, "I am delighted to announce that we have completed our acquisition of iElement. Ivan has an excellent team, the iElement growth strategy is very exciting, and I believe there are good potential synergies with the Envoy technology being developed by MailKey."
About iElement
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 www.ielement.com
About MailKey
MailKey is a messaging security and management company. It is developing its Envoy technology platform to enable scaleable filtration, control and management of messages through a central management point. MailKey is exploring business development opportunities for the Envoy platform in the wireless Mobile Network Operator, gaming, and other markets. In November 2004, MailKey announced that it had been appointed as a Premium Member of the Orange Partner program to develop next-generation mobile message management solutions for mobile subscribers. Orange is one of the world's leading wireless Mobile Network Operators, with a 50 million-plus customer base in 19 countries. For more information on MailKey, please visit www.mailkey.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.