MAYS LANDING, N.J., Dec. 20, 2006 (PRIME NEWSWIRE) -- Management Services, Inc. (Pink Sheets:MGSV) today announced that it has entered into an "Agreement and Plan of Merger" with Stable Management, Inc ("SMI") based in Mays Landing, N.J., which is a private company involved in the management and operation of Standardbred harness racing stable operations. Through a plan of arrangement, MGSV will acquire all the issued and outstanding shares of SMI in exchange for restricted shares of MGSV. The transaction is subject to the completion of definitive agreements and it is expected to be completed on or before December 31, 2006. SMI will operate as wholly owned subsidiaries of MGSV.
Ronald C. Pilatsky, President and Founder of SMI stated, "Our key business objective is to attempt to combine the management of quality horse purchasing with winning trainers and racing at some of the best tracks throughout the country. The Company believes that this business model could offer some of the highest potential for winning purses and profitable operations. The Standardbred horses, known as trotters or pacers, are cheaper to purchase, easier to train and keep, can race more often and can now compete for increasingly larger purses."
According to a December 11, 2006 article which appeared in the Dow Jones Business Weekly Barron's, its author Andrew Cohen concluded, "After many lean years the average purses increased 5% in 2005 and are expected to jump even further in 2006 due in part to the opening of a number of tracks including the re-opening of New York's famed Yonkers Raceway. Also, money is pouring into harness purses because of the popularity of "racinos" -- tracks that offer bettors both video slot machines and live horse racing. With over 30 harness tracks operating throughout the U.S. and Canada, the tracks are required by local or state laws to contribute a portion of the slot money back to the purses."
MGSV plans to continue to explore strategic alternatives to enhance future shareholder value including: joint ventures, mergers or acquisitions. Accordingly, MGSV previously announced plans to acquire a group of private affiliated companies collectively known as Excess, which export and market branded U.S. labeled and privately labeled U.S. manufactured "healthy natural foods" throughout the Caribbean as well as Central America and Mexico. That transaction is anticipated to be finalized by December 31, 2006. The management team and the Board of Directors of MGSV continue to make every effort possible to help shareholders achieve the greatest value for their investment.
Any forward-looking statements contained in this release reflecting management's best judgment based on factors currently known involve risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements included herein as a result of a number of factors including but not limited to the Company's ability to enter into various financing programs, roll-up business acquisitions and competition from other companies.