NEW YORK and TUNBRIDGE WELLS, U.K., Dec. 21, 2005 (PRIMEZONE) -- Auto Data Network (Pink Sheets:ADNW), a provider of software and data services to the worldwide Automotive industry, today announced the closure of the reverse acquisition of W3 by wholly owned subsidiary Aftersoft Group, Inc. As previously announced, Auto Data Network plans to distribute the 32,500,000 shares in Aftersoft Group, Inc. that it owns to its shareholders subject to receiving shareholder approval.
Aftersoft Group is a leading supplier of business management solutions to the automotive aftermarket sector. CEO Ian Warwick commented, "We are pleased to announce the closing of the reverse acquisition of W3 Group. We believe Aftersoft has a compelling opportunity to become a leading player in this marketplace. As software is maturing and going vertical as commodity-like solutions are being made redundant, new solutions are needed that target specific process or methods such as virtualization of applications. By focusing on deeper functionality within vertical markets, this ensures that the solutions are better aligned with the customer. Aftersoft has historically operated in the Auto Parts aftermarket space, which is characterized by customers who need vertical expertise as they operate in complex distribution environments and manage, market and sell large quantities of diverse types of products and manage extensive inventory.
"We have been successful and profitable in this space to date, and for the fiscal year ending June 30th 2005 we earned 9 cents a share on revenue of $22m (10 cents and $23.5m on a pro-forma basis). We now plan further expansion by strategic acquisitions and organic growth, which we expect to grow in excess of 20% per annum."
The following new officers and directors have been appointed to the board and will manage the company going forward:
Mr. Ian Warwick is being appointed as Chief Executive Officer, Mike Jamieson is being appointed as Chief Operating Officer and Mr. Michael O'Driscoll is being appointed as Director and Chief Financial Officer.
Mr. Warwick commented further, "Making Aftersoft an independent, publicly traded company is an important milestone in the strategic plan for creating value at Auto Data Network. With a focused business strategy, strong market position and a management team with deep domain expertise, we believe Aftersoft is ideally positioned for significant growth as its market expands."
The company's name is in the process of being changed from W3 Group, Inc. to Aftersoft Group, Inc., and a new ticker symbol has been requested. The company will issue a press release and disclose this publicly when it occurs, along with regulatory SEC filing with audited financials, which will be filed within four days of closing under the 8K rules.
About Auto Data Network, Inc.
Auto Data Network is a group of established companies which provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace. This marketplace consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. The company estimates that this represents a $15 billion market for software and services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently while achieving considerable cost savings. The majority of the company's current solutions is focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business is responsible for 48 percent of a dealership's profit from 12 percent of their overall revenue. The second most profitable area is vehicle finance and insurance; this area contributes 35 percent of profits from 2 percent of revenues.
About Aftersoft Group, Inc.
Aftersoft is a leading supplier of business management solutions serving small and medium sized businesses. Aftersoft Group, Inc. has operations in Sheffield (United Kingdom), Allentown (Pennsylvania), and San Juan Capistrano (California). Aftersoft is currently focused on serving the Auto Parts aftermarket, which is a $68 billion market opportunity in the U.S. alone with approximately 20,000 potential clients. Aftersoft has recently developed its products so as to be able to serve the wholesale market, a $263 billion U.S. market opportunity with 31,000 potential clients, and the hardlines and lumber market, a $95 billion market opportunities with 29,000 potential clients.
Our customers have complex supply chains that need specialized software services to operate efficiently. Our customers operate in complex distribution environments and manage market and sell large quantities of diverse types of products. Business with complex supply chains need more sophisticated systems in tune with their vertical market place to operate efficiently.
The Company's Systems and Services
Meeting the needs of the automotive aftermarket requires a combination of business management systems, information products and online services that combine to deliver benefits for all parties involved in the timely repair of a vehicle. The Company provides systems and services that meet these needs and help its customers to meet their customers' expectations. These products and services include:
-- Business management systems comprised of the Company's
proprietary software applications, implementation and training
and third-party hardware and peripherals;
-- information products related to parts, tires, labor
estimates, scheduled maintenance, repair information,
technical service bulletins, pricing and product features
and benefits, which are used by the different participants
in the automotive aftermarket; and
-- Online services and products that provide online connectivity
between manufacturers, warehouse distributors, retailers
and automotive service providers. These products enable
electronic data interchange throughout the automotive
aftermarket supply chain between the different trading
partners. They also enable procurement and business services
to be projected over the Web to an expanded business audience.
Safe Harbour Statement
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the company's business including increased competition; the ability of the company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the company's filings with the Securities and Exchange Commission (SEC).