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Semotus Solutions and Global Beverage Group Enter into Joint Venture
Direct Store Delivery Consortium Invests Capital in Semotus Subsidiary
SAN JOSE, Calif.--Jan. 23, 2002--Semotus Solutions, the Wireless Architects(TM) (AMEX:DLK), a leading provider of mobile enterprise applications, announced today that Application Design Associates (ADA), Semotus' mobile field force automation subsidiary, has completed a partnership agreement with Global Beverage Group, a Canadian-based Direct Store Delivery (DSD) Consortium. The closing, subject to customary conditions, is expected by the end of January.
Global Beverage Group will invest $250,000 up-front, assume approximately $400,000 in liabilities, and invest an additional $1 million in ADA during the next 15 months in exchange for a 49% interest in ADA. Global Beverage Group will have an option to purchase the remaining 51% of ADA at a future date for $2.5 million or the return to Semotus of the common stock that it issued in connection with its original acquisition of ADA. As part of the transaction, the Global Beverage Group received 5-year warrants exercisable into 150,000 shares of Semotus common stock.
Semotus acquired Application Design Associates in July of 2001. ADA's Vending Maintenance Management System (VMMS) and Auto Tech Link (ATL) mobile field service hand-held application are the leading asset tracking and field service software solutions in the bottling industry. Global Beverage Group provides a complete suite of software solutions for the beverage industry. Its large field service customer base is a target market for Semotus' mobile messaging software, HipLinkXS.
``We are pleased to enter into this joint venture with Global Beverage Group,'' said Anthony N. LaPine, Semotus Solutions CEO. ``It gives Semotus an immediate inflow of cash and aligns us with one of the most innovative software companies in the DSD beverage space. In addition, it gives Semotus' flagship wireless messaging product, HipLinkXS, access to a lucrative field force automation customer base.''
``This partnership with Application Design Associates adds three critical products to our beverage software suite -- vending and equipment maintenance software, mobile field service hand-held application, and fleet maintenance management software,'' stated Ted Hastings, Global Beverage Group CEO. ``Another benefit of this partnership is the opportunity to offer Semotus Solutions' wireless mobile applications, like HipLinkXS, to the Global Beverage Group customer base of over 150 beverage distribution companies.''
About Global Beverage Group
Global Beverage Group's suite of products are designed to streamline the entire order-to-cash cycle for wholesalers that provide direct delivery of products to stores, offices and homes. Global Beverage Group helps these organizations respond rapidly to changes in demand, often day-to-day or even hour-to-hour delivering world-class integration of processes throughout the supply chain while exploiting the benefits of a mobile computing platform. The company's solutions are designed to handle complex order management, customer service and distribution issues. For more information, please contact Chris Varney, EVP of Operations 519/746-3736.
About Semotus Solutions -- The Wireless Architects(TM)
Semotus Solutions (AMEX:DLK - news) is a leading provider of mobile enterprise application software that connects mobile employees to critical business systems, information, and processes. Semotus Solutions help mobile employees make better and faster decisions, increase customer satisfaction, and improve efficiencies in their business processes for shorter sales and service cycles.
With a growing enterprise customer base of more than 600 corporations like AOL Time Warner, Alcatel, Lucent Technologies, JP Morgan-Chase, Coca-Cola, Dow Jones, extended over vertical markets of workforce automation, finance, healthcare, and m-commerce, Semotus is the proven choice for mobile application software that can be wirelessly integrated with existing systems to maximize productivity and reliability.
Semotus Solutions mobile enterprise application software provides mobility, convenience, efficiency and profitability. Semotus Solutions is headquartered in San Jose, Calif., with research facilities and sales offices throughout North America. For more information on our mobile application software, please visit www.semotus.com.
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as ``intends,'' ``believes'' and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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Contact:
Semotus Solutions
Gregory Allen, 800/373-5947 (Investor Relations)
mailto:IR@semotus.com
Stephanie Janard, 800/373-5947 (Media Relations)
mailto:sjanard@semotus.com
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