SAN FRANCISCO, Aug. 8, 2000 (PRIMEZONE) -- Cotelligent, Inc. (NYSE:CGZ), a leading provider of end-to-end information technology (IT) solutions, today announced the consummation of its wireless joint venture with bSmart.to Technologies, Inc.
In April, Cotelligent announced the signing of an agreement to form a wireless Internet joint venture. Since that time, Cotelligent and bSmart.to Technologies, Inc. have been in the process of completing the due diligence and final negotiations. Cotelligent completed this process and executed the definitive joint venture agreement today. The final terms of the agreement require Cotelligent to contribute its Philadelphia-based IT solutions staff and ASP data center and cash of $5.0 million in exchange for a 50% interest in the joint venture of which $2.5 million will be distributed to the developer of the technology. Cotelligent will have equal board representation in the joint venture. In addition, Cotelligent has been retained by bSmart.to Technologies to provide development and consulting services.
In preparation for the joint venture and to support future growth opportunities, Cotelligent is positioning itself to rapidly support delivery of its services in Europe and Asia. It is planning to open offices in London and Singapore, with a supporting development office in India. Cotelligent is in the process of developing in-house training and a wireless lab where end-to-end solutions can be prototyped and tailored to simulate client environments. Both the training and lab are expected to be operational within 60 days.
"With the successful completion of this transaction, Cotelligent is positioned to execute its transformation strategy to become a powerhouse in IT consulting, focused on delivering end-to-end eBusiness and wireless data application solutions," said James Lavelle, Chairman and Chief Executive Officer. "Our new partners at bSmart.to have developed outstanding leading edge wireless technology and we are truly excited about our global opportunity."
About Cotelligent, Inc.
Cotelligent (www.cotelligent.com) is an information technology (IT) consulting firm that is transforming itself to focus on delivering end-to-end eBusiness solutions and emerging wireless data applications ("mBusiness") solutions. Cotelligent assists companies to receive information from multiple locations in an efficient format. Areas of specialization include Web-enabled applications, Web design, eCommerce, Web portals, and ERP eSolutions ("eBusiness"), as well as custom application development, system integration and implementation, strategic consulting and assessments, and business intelligence ("Enterprise Solutions"). As part of its wireless initiative, Cotelligent is also developing its knowledge and expertise in mBusiness. Employing over 600 technical consultants and operating staff, Cotelligent delivers services from major metropolitan locations throughout the United States. Cotelligent's stock is traded on the New York Stock Exchange under the symbol CGZ.
About bSmart.to Technologies, Inc.
bSmart.to Technologies Inc is a privately owned technology company with regional headquarters in Ireland, and Singapore. It will shortly be opening new offices in Asia, Europe and the US as part of its global roll-out of its unique and patented* technology, systems architecture and SMS browser, which enables it to take real time and complex information and communication feeds from multiple internal and external data sources and enable users to create their own micro-selections of that information and communication, and their own micro-selections of their preferred wireless and other delivery channels, both on an alert and on demand basis. The information and communication can be delivered down any combination of two-way delivery channels, including private extranet, intranet, SMS (short messaging) to their mobile phones, through the bSmart.to patented* SMS and datacall browser, to wireless communicators such as the Nokia 9110, WAP gateway, email and by an automated voice call. *patents pending
Safe Harbor Statement
Except for historical information contained herein, the information contained in this news release includes forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from such statements. All forward-looking statements included in this release are based upon information available to Cotelligent as of the date thereof, and Cotelligent assumes no obligation to update any such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the extent to which customers invest in IT infrastructures; the review of the restructuring charge by the Securities and Exchange Commission or other governmental agency; the availability of qualified IT professionals; the rate of hiring, productivity and retention of revenue-generating personnel; changes in the pricing of Cotelligent's services; the timing and rate of entrance into new regional markets; the structure and timing of acquisitions; the conditions relating to divestiture of the staff augmentation business; the conditions relating to the closing of the joint venture with bSmart.to Technologies; the possibility that the new joint venture requires capital beyond amounts currently contemplated; the possibility that revenues earned by or derived from the new joint venture is less than current expectations; the possibility that technologies will not perform according to expectations; and general economic conditions. Please refer to the discussion of risk factors and other factors included in Cotelligent's Annual Report on Form 10K for the year ended March 31, 2000, the Company's most recent Report on Form 10Q, and other filings made with the Securities and Exchange Commission.