COPPELL, Texas, June 29 /PRNewswire-FirstCall/ -- CellStar Corporation today announced that the Company has extended its current distribution agreements with Motorola, Inc. in the U.S. and Latin America. Negotiations pertaining to a new agreement between the two Companies will continue. The U.S. extension automatically renews monthly until a new agreement is in place. The Latin American extension expires on August 31, 2006. The extensions will allow the Companies more time to complete a new agreement.
Under the current agreement CellStar is the primary distributor for Motorola's wireless products to certain carriers and dealers throughout the United States. The strategic relationship between Motorola and CellStar began in 1989 and encompasses a wide array of wireless handsets and accessories offered by Motorola's Personal Communications Sector.
About CellStar Corporation
CellStar Corporation is a leading provider of logistics and distribution services to the wireless communications industry. CellStar has operations in North America and Latin America, and distributes handsets, related accessories and other wireless products from leading manufacturers to an extensive network of wireless service providers, agents, MVNOs, insurance/warranty providers and big box retailers. CellStar specializes in completely integrated forward and reverse logistics solutions, repair and refurbishment services, and in some of its markets, provides activation services that generate new subscribers for wireless service providers. For more information, visit http://www.cellstar.com/ .
This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A variety of risk factors, including the Company's ability to implement its business strategies, manage cost-reduction actions, maintain its channels of distribution, continue to secure an adequate supply of competitive products on a timely basis and on commercially reasonable terms, maintain or improve its operating margins, secure adequate financial resources, maintain an adequate system of internal control, comply with debt covenants, and continually turn its inventories and accounts receivable, as well as changes in foreign laws, regulations and tariffs, continued consolidation in the wireless market, new technologies, system implementation or continuation difficulties, competition, handset shortages or overages, terrorist acts or other unforeseen events, economic weakness in the U.S. and other countries in which the Company does business and other risk factors, are discussed in the Company's Annual Report on Form 10-K . Any one, or a combination of these risk factors could cause CellStar's actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking statements.
