COLLEGE POINT, N.Y., April 26, 2006 (PRIMEZONE) -- Alliance Distributors Holding Inc. (OTCBB:ADTR) today announced that it will not buy Foto Electric Supply Co. Inc. (Fesco). An agreement by the company to buy Fesco expired on February 28, 2006, and subsequent discussions to extend and amend the agreement have ended. The company will record a charge of approximately $257,000 in the first quarter ended March 31, 2006 for its costs in the terminated transaction.
Jay Gelman, CEO of Alliance, said, "We were unable to raise the necessary financing at the valuation required by the sellers. We continue to feel that Fesco would have been an excellent acquisition, and we admire its management and business."
Mr. Gelman added, "The relationships that we developed with numerous financing sources will be of value to us when other acquisition opportunities come our way. At the same time, we are proceeding with our strategy of internal growth through aggressive marketing to our existing and prospective customers."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc. (www.alliancedistributors.com), which does business as Alliance Distributors, is a full service wholesale distributor of interactive video games and gaming products for all key manufacturers and 3rd party publishers in the video game industry. Alliance Distributors offers comprehensive support on Playstation 2, PS1, PSP, X-Box, Game Cube, Nintendo DS and GameBoy systems, peripherals and software titles.
Safe Harbor
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