UniverCell to Discontinue Operations
25 September 2004 - 5:45AM
PR Newswire (US)
UniverCell to Discontinue Operations BALTIMORE, Sept. 24
/PRNewswire-FirstCall/ -- UniverCell Holdings, Inc.'s (OTC:UVCL)
(BULLETIN BOARD: UVCL) subsidiary UniverCell announced that it has
decided to discontinue its rental program, which was its only
remaining operation. Due to recent events including the increase in
rates due to the fluctuation of currencies, its rates have risen to
the point where it does not think it will be able to be profitable
in the coming years. In addition, it has seen the number of renters
decrease dramatically after it did not continue its marketing
efforts with Avis. Its advertising seems to be less effective than
before due to increased competition and GSM rollout in the United
States. It will no longer be accepting cellular phone rental
applications and will attempt to wind up its existing rental
operations in an orderly fashion. It will continue service to the
phones that are currently rented until they are returned. It will
continue to bill its customers and attempt to collect any and all
outstanding receivables. The proceeds of winding up will almost
certainly not be sufficient to satisfy its existing obligations. It
has not yet determined whether to cease all operations. Among the
possibilities the Company is considering are entering a related
business in the communications area or in an unrelated area. If it
decides to continue operations additional capital will be required.
It may also seek merger or reverse merger candidates in related or
unrelated fields. Sean Y. Fulda, Chairman and CEO, stated, "While
we were hoping to grow unhampered after the final maturity of the
debentures, other issues such as increased costs limited our
ability to become profitable. We have chosen to discontinue
operations as they would have likely resulted in continued losses.
We may attempt to open other subsidiaries in related or unrelated
fields if we can obtain the necessary financing. We may also
attempt to do a merger or reverse merger with a company in a
related or unrelated field." Contact Info: Investor Relations
UniverCell Holdings, Inc. (800)765-2355 x8150 Safe Harbor for
Forward-Looking Statements: Except for historical information
contained herein, the statements in this release are forward-
looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-Looking statements involve known and unknown risks and
uncertainties, which may cause a company's actual results in the
future periods to differ materially from forecasted results. These
risks and uncertainties include, among other things, product price
volatility, product demand, market competition, and risk inherent
in the company's operations. You can identify these statements by
the fact that they do not relate strictly to historical or current
facts. They use words such as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "feel," "think," "hear," "enable,"
"will," "guess," "believe" and other words and terms of similar
meaning in connection with any discussion of future operating or
financial performance. DATASOURCE: UniverCell Holdings, Inc.
CONTACT: Investor Relations, UniverCell Holdings, Inc.,
+1-800-765-2355 x8150 Web site: http://www.rentalcell.com/
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