IRVINE, Calif., Jan. 6 /PRNewswire-FirstCall/ -- Network Installation Corp. (BULLETIN BOARD: NWKI) , today announced that its previously announced acquisition of Spectrum Communications has been rescinded.
Network Installation CEO Jeffrey R. Hultman stated, "It is with much regret that we are announcing the rescission of our acquisition of Spectrum Communications. Since the transaction closed on November 1, 2005 there have been material philosophical differences between the parties regarding operations as well as our future direction. As a result, both parties felt it best to part ways prior to any considerable integration of the two companies. We are however pleased that Spectrum has agreed to assist us with the completion of several of our existing projects."
Spectrum founder Robert Rivera added, "I too am very disappointed in this development but also agree that this is the right move for both parties. In addition to our commitment to assist Network Installation with their projects, we leave on amicable terms and believe there may be the potential for future collaboration."
Pursuant to the Rescission Agreement, Spectrum will return 18,567,639 shares of Network Installation common stock and a promissory note for $1.5 million in exchange for 100% of the outstanding shares of Spectrum. Additionally, Spectrum's two appointed directors to the Network Installation Board, Mr. Kurt Jensen and Mr. William Sullivan have resigned effective immediately. The Company plans to replace them in the near future.
About Network Installation
Network Installation Corp. is a single source provider of communications infrastructure, specializing in the design, installation, deployment and integration of specialty systems and computer networks. Through its wholly-owned subsidiaries Com Services and Kelley Technologies, it provides its services to the following customers and industries; Gaming & casinos, local and regional municipalities, K-12 and education. To find out more about Network Installation Corp. (BULLETIN BOARD: NWKI) or its subsidiaries, please visit http://www.networkinstallationcorp.net/, http://www.kccinc.com/. The Company's public financial information and filings can be viewed at http://www.sec.gov/.
Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.
For further information, please contact Jeffrey R. Hultman, Chairman and CEO Network Installation Corp.,
