DALLAS, May 9, 2000 (PRIMEZONE) -- Focus Affiliates, Inc. (dba FocusWireless.com) (Nasdaq:FONE) announced today that it will provide Convergent Technology Holdings, Inc. with e-fulfillment and other e-commerce support services throughout the United States.
Convergent Technology provides back-office processing, activation services and other post-purchase functions to a growing nationwide network of cellular and wireless dealers, including online e-retailers and conventional wireless retailers.
"FocusWireless.com will provide critical e-fulfillment and distribution services to support our nationwide wireless growth strategy," said Raymond Schenk Jr., national sales director for Convergent Technology. "Consumers are increasingly turning to the Internet-based e-retailers to buy wireless products and services, and Convergent supports these wireless e-retailers with the products, activations and other critical services that they need to complete online transactions quickly and efficiently. By linking our online systems with FocusWireless.com, we plan to assure that each e-retail consumer transaction will be completed with high-quality fulfillment and delivery."
"The FocusWireless.com agreement provides a strategic and cost-effective fulfillment link that will complement our growing portfolio of telecommunications companies," added Christopher Neuert, director of Business Development for Convergent.
"From our side, this alliance is another important step in FocusWireless.com's strategic transition to B2B services," said Michael S. Hedge, president and chief executive officer for FocusWireless.com. "We believe that the Internet will be an increasingly significant contributor to the growth in demand for wireless telecom products and services worldwide. It is quite a challenge, however, to match the consumer with the specific broadband technologies and accessories that are appropriate to his or her market and to quickly complete the additional fulfillment processes necessary to deliver the device, programmed and ready for use, to the customer.
"By combining our capabilities with a customer like Convergent, we are facilitating the emergence of this e-retail market and at the same time demonstrating the effectiveness of our B2B strategy," Mr. Hedge said. "We have established a strong foundation of business with the new customer agreements that we have announced in the past month, and we expect more to follow as the e-retail channel plays an increasingly important role in the growth of wireless telecom."
Convergent Technology Holdings, Inc. is a targeted holding corporation focused on incubating, acquiring, developing and operating a group of telecommunication companies, with a primary focus on the wireless communication industry. Through strategic relationships and direct agreements, Convergent has built a nationwide cellular and wireless data activation footprint, with the ability to activate service with AT&T, MCI/Worldcom, Nextel Communications and Omnipoint Technologies. The company supports its sales and development efforts with a fully integrated back-office operation. Through Convergent's partnering approach, the company plans to continue establishing strategic relationships within the telecommunication industry and to support its incubation and acquisition activities through a network of institutions, broker dealers and venture capital funds.
FocusWireless.com, traditionally a wholesale distributor of wireless products, is focused on becoming a leading developer of B2B e-fulfillment solutions for the wireless telecommunications industry. The Company's strategy is to provide comprehensive, Internet-enabled solutions to wireless manufacturers, network operators, and other service providers throughout the United States. These services include end-to-end transaction management and facilitation services, such as product procurement, inventory risk management, handset programming, kitting and returns management. The Company is primarily focused on two fast-emerging telecom distribution channels -- mobile virtual network operators (MVNOs) and wireless e-retailers, which offer bundled communications products and services, Web-enabled messaging devices and related services.
Going forward, Focus Wireless.com plans to generate its revenues primarily by providing fee-based services to new wireless telecom distribution channels, offering Web-based solutions that are designed to accelerate the growth of these new emerging companies. For more information on the Company, please visit its web site at www.focuswireless.com.
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward looking statements. Risks include the need to raise additional capital to continue operations, potential delays in developing Internet e-commerce solutions, potential lack of customer acceptance of this new order processing method, unanticipated costs to develop and maintain the Company's technology systems, and the Company's ability to transition to a fee-based service model. Further management discussion of risks and uncertainties can be found in the Company's quarterly filings with the Securities and Exchange Commission and other periodic filings. -0- CONTACT:
Mark Fruehan Chief Marketing Officer FocusWireless.com (214) 222-7979
Raymond Schenk Jr. Christopher Neuert Convergent Technology Holdings, Inc. (203) 852-4336