LAS VEGAS, March 28, 2006 (PRIMEZONE) -- MiNetwork Group, Inc. (Pink Sheets:MWKG) announced today that after months of attempting to finance the on-going capital and operating expenses of the corporation and attempting to develop the core business of VOIP phone distribution, without success, the Board of Directors of the Corporation has approved an exclusive global licensing transaction with a group of private Alberta investors.
Further to terms of the exclusive licensing transaction the Corporation has obtained a commitment from this group of Alberta investors to invest a minimum of $200,000.00 Canadian in order to advance the miNetwork business model. A portion of these funds will be loaned on a convertible debenture basis to MiNetwork Group Inc. in order to retire debt, which if not dealt with immediately would force the Corporation into bankruptcy. In return for the transfer of the exclusive global license regarding the following products: miPhone, miCard and miOffice and transfer of participation in all miNetwork Group joint venture interests in all various business enterprises and proposals as previously announced, the new exclusive global licensee shall pay miNetwork Group Inc. an on-going revenue stream equal to two (2%) percent of all gross revenues generated by way of the global sales of all miPhone, miCard and miOffice products and services. It will be the responsibility of the licensee to pay any and all underlying contractual obligations required in order to maintain and provide the required services, including the contractual payments to Calllan Communications for the delivery of the miPhone service. In addition, under the terms of the exclusive global license agreement, certain miNetwork Group Inc. personnel will be hired by the exclusive licensee to assist and support the entire global customer base for miPhone and related miNetwork products, as advanced by the licensee. This will further insure that all billing and customer and technical support services are maintained such that miNetwork Group Inc. can be confident in its proposed receipt of the ongoing revenue stream.
"It is extremely frustrating to have come so close to turning the corner and not being able to secure the necessary working capital to get the company to profitability," stated Dan Pacholik, CEO of miNetwork Group Inc. "As announced in the company's disclosure and press releases of: October 24, 2005; October 11, 2005; September 12th 2005, August 29, 2005; August 22, 2005 and of May 16th 2005, we were unable to complete the proposed financing and to reach stated objectives. We had entered into agreements for funding arrangements with two separate groups and engaged three public market relations firms, only to see the shares of our company fall from a high of $0.24 to $0.02 and having received very limited operating capital. In addition our market was unable to establish any degree of consistent liquidity for potential investors, during a period when a number of large well funded phone and cable companies have entered the market. These companies have spent, and continue to spend, millions of dollars on advertising and promotional budgets in order to gain market share in this crowded industry, making it very difficult for undercapitalized start up companies like miNetwork Group Inc.," added Mr. Pacholik. "The management team has therefore undertaken to re-structure and consolidate miNetwork Group, Inc. and install new management, to evaluate other opportunities for the company," stated Mr. Pacholik.
About miNetwork Group, Inc.
MiNetwork Group, Inc. is an Internet based marketing and distribution company focused on the migration of real world Internet products and services from a fixed location service to the wireless devices and access points now being deployed globally.
On Behalf Of The Board of miNetwork Group Inc. President -- Dan Pacholik