NEW YORK and LONDON, Aug. 29, 2006 (PRIMEZONE) -- Auto Data Network, Inc. (Pink Sheets:ADNW) today announces an update on Spin-Off previously announced on 4th August, 2006.
As previously announced, on August 4th, 2006, Auto Data Network, Inc. declared a Spin-Off of all of the shares of common stock of Aftersoft Group, Inc. owned by Auto Data Network, Inc. (the "Shares"). The Spin-Off will include the shares of common stock of Aftersoft Group, Inc. which Auto Data Network, Inc. received in exchange for the shares of EXP Dealer Software Ltd. which was acquired by Aftersoft Group, Inc. This Spin-Off is subject to requisite receipt of all applicable approvals which management anticipates obtaining during September 2006.
It is anticipated that the rate at which the shares of Aftersoft shall be Spun-Off to each applicable shareholder of record of Auto Data Network, Inc. on August 25, 2006 will be one share of Aftersoft Group Inc. for every share of common stock of Auto Data Network, Inc. outstanding on a fully converted basis.
The Spin-Off is subject to receipt of all necessary approvals for the distribution. These approvals include both the approval of the holders Auto Data Network, Inc.'s Series A-1, A-2, B, B-2, D-1 and D-2 preferred stock, in each case as a separate class, and availability of an applicable exemption from registration for the Spin-Off or effectiveness of a registration statement covering the Spin-Off. Auto Data Network, Inc. anticipates payment of the Spin-Off shares to its shareholders promptly upon receipt of those necessary approvals.
About Auto Data Network, Inc.
Auto Data Network is a group of established companies that 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.
About Aftersoft Group, Inc.
Aftersoft is a leading supplier of business management solutions serving small and medium-size 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 opportunity 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. Businesses with complex supply chains need more sophisticated systems in tune with their vertical marketplace 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 which meet these needs and help its customers 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 Harbor 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 filings with the Securities and Exchange Commission (SEC).