REDONDO BEACH, Calif. May 29, 2003 (PRIMEZONE) -- CorpHQ, Inc. (Pink Sheets:COHQ) today stated that management has noticed increased trading in its shares of common stock. According to the company's Chairman and Chief Executive Officer, Steve Crane, there is no basis for the increased trading price in its stock, or increased volume, which has been experienced during the last 48 hours. These increases should not be seen as any indication of an increase in the value of the company or its shares.
In his statement, Mr. Crane indicated that there is only one possible explanation for why the increased volume could have occurred. Recently, CorpHQ has begun to explore, preliminarily, the possibility of acquiring the shares of another company of which CorpHQ is the majority shareholder, Safeguard Technology International, Inc. Although these discussions are just at the beginning stages, and no decision has been made by the Board of Directors of either corporation to proceed with any transaction as of this point, Safeguard has disclosed to certain of its accredited European shareholders, on a confidential basis, the receipt of an inquiry from CorpHQ with respect to the possible transaction. CorpHQ's management has also disclosed the possibility to certain of its advisors on a confidential basis. It may be that one or more of those individuals, despite warnings provided by both companies, has traded on or leaked this information.
"This was an inquiry only. No formal offer has been made to Safeguard Technology, and no specific terms have been discussed. At this juncture, it is impossible to determine if a transaction will result from this inquiry. If and when it is decided to proceed with any such transaction, appropriate disclosures will be made to shareholders and the public markets," said Mr. Crane.
Any statements contained in this communication which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties, many of which are not within the control of the company, which could cause actual results to differ materially from those set forth in or implied by such forward-looking statements.