Universal Express Not to Purchase North American Airlines
NEW YORK, Nov 24, 2003 (BUSINESS WIRE) -- Universal Express, Inc. (OTCBB: USXP)
announces the termination of its purchase agreement for the acquisition of North
American Airlines. Universal Express is still awaiting the return of its deposit
monies to properly cancel this transaction.
"During our 45 day due diligence period, our accountants raised questions
regarding substantial liabilities and doubtful future revenues of NAA. Rather
than risk an additional $1,500,000 non-refundable deposit without a face-to-face
meeting, we decided to wait for clarification. Appointments and phone requests
have at this time not been returned. The North American contract was devoid of
reps and warranties, but frankly, our funders and I might have advanced if
dialogues were possible and some concessions were agreed to", said Richard
Altomare, CEO & President of Universal Express.
Mr. Altomare continued, "Deciding between long term corporate financial health
and exciting future acquisitions outweighed risking additional monies without
communication and forthright answers. Obviously, there is always a
disappointment when an acquisition goal is not achieved, but considering the
financial future needs of our luggage, trade association, credit card and
equipment leasing divisions, must outweigh the unanswered risk of potential
negative cash flow challenges. Although the transaction has been terminated,
Universal Express wishes NAA continued success and leaves open the door for
future discussion since we have completed our due diligence, should such
opportunities materialize. We continue searching for synergistic airline
partners.
"We apologize to our shareholders for NAA's press release which was issued
without our review and notification."
Universal Express, Inc. owns and operates several subsidiaries including
Universal Express Capital Corp. (USXP Cash Express division), Universal Express
Logistics, Inc. (Luggage Express and The Virtual Bellhop, LLC) and the
WorldPost(TM) Private Postal Network, Inc. These subsidiaries and divisions
provide the private postal industry and customers with value-added services and
products, logistical services, equipment leasing, and cost-effective delivery of
goods worldwide.
More information and news about Universal Express are available at www.usxp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained herein, which are not historical, are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays beyond
the Company's control with respect to market acceptance of new technologies or
products delays in testing and evaluation of products, and other risks detailed
from time to time in the Company's filings with the Securities and Exchange
Commission.
SOURCE: Universal Express
CONTACT: Equitilink
Ron Garner, 877-788-1940
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