RICHFIELD, Ohio, Oct. 24, 2005 (PRIMEZONE) -- SmartData, Inc. (Pink Sheets:SDAI), a public-traded company, announced the closing of its subsidiary offices in Richfield, Ohio. The Board of Directors has decided to rescind the merger transaction of October 4, 2004 between SmartData of Ohio a private company and SmartData of California, formally known as Netcoast Communications, Inc. The Richfield office included both marketing and software development engineers. Marketing will continue to be handled through other locations and software development will be outsourced until further notice.
The Board's position is based upon the majority shareholder's refusal to transfer certain assets from the SmartData private Ohio company to the public company. Shares issued to that shareholder were cancelled based upon his admission that those assets, basically software, were now part of a different company he recently formed and are being marketed under a different trade name.
The public company originally agreed to the merger in order to provide to its Healthcare customers a highly secure connectivity product that would enable those customers to comply with the HIPAA requirements of electronic medical record exchangeability. The product being acquired needed modifications in order for it to be used in the process. Not only did the author and majority shareholder refuse to transfer ownership, but he also refused to allow any modifications. He subsequently resigned his position as CEO and Chairman on April 15, 2005. The Board agreed to suspend operations on May 10, 2005 at the Ohio location and the company has aligned itself with other venders to provide the connectivity software needed to service its' customers.
Further the remaining shareholders have agreed to change the name of the public company since it does not wish to recognize any affiliation with SmartData, Inc. or the SmartData products. The new name will be Coastal Technologies, Inc. and upon completion of the appropriate documentation the company has requested a ticker symbol change. The company anticipates these changes to occur within the next 10 days.
Coastal Technologies, Inc. provides a series of outsourcing services include a suite of premier IT systems and services to Healthcare providers in predominantly rural environments. Services include connectivity products, development of electronic medical records, high availability disaster recovery, and clinical software solutions. In 2004, the United States Department of Health and Human Services (HHS) launched an initiative to move ALL medical records to an electronic format in the next 10 years. HHS is beginning to provide funding in the form of grants to allow smaller hospitals to initiate electronic medical record projects.
Coastal Technologies, Inc. maintains a wide variety of skills and disciplines that include the development an implementation of new client server applications, business consultancy, systems analysis, customized software development for multiple platforms, local and wide area network configurations, E-commerce, Web design and firewall/security.
Forward-Looking Statements: Investors are cautioned that certain statements contained in this document are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects" and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Coastal Technologies actions, which may be provided by management, are also forward-looking statements as defined by the act. These statements are not guarantees of future performance.