FMDA - Futuremedia Announces Completed Sale of Swedish Subsidiary
BRIGHTON, England, April 12 /PRNewswire-FirstCall/ -- Futuremedia plc (Nasdaq: FMDA) a leading learning and brand communications provider, today announced that it has completed the sale of its Swedish subsidiary, Open Training, to the Edvantage Group AS. Futuremedia will record an estimated gain from the sale, calculated on the net book values of the net assets transferred.
The sale price was SEK 7.2 million (GBP 522,000) ($1.03 million) which comprises an initial cash payment of SEK 1.5 million (GBP 109,000) ($215,000) plus a four year loan note obligation for a total of SEK 5.7 million (GBP 413,000) ($816,000) payable over four years. Futuremedia will retain the full rights of ownership and all intellectual property for Learngate(TM), the Learning Management System developed by Open Training on behalf of Futuremedia. Edvantage Group AS will have a perpetual license to use this technology without limitation.
These figures are quoted using an exchange rate of SEK 1 to GBP 0.0724.
About Futuremedia
Futuremedia plc is a global media company providing online education, e-marketing and brand communications services to public and private sector organizations. Established in 1982 and listed on the Nasdaq in 1993, we help our clients to communicate their values, product and brand information to employees, customers and industry, and we believe that education, or learning, is a key component in the communication mix. Futuremedia divisions are Futuremedia Learning and Button Communications. For more information, visit www.futuremedia.co.uk
'Safe Harbor' Statement under Section 21E of the Securities Exchange Act of 1934: This press release contains forward-looking statements related to future results and speaks only of Futuremedia's expectations as of the date hereof. Such statements include expectations regarding: the expected benefits from new sales, contracts or products; the expected benefits and success of operations in new markets; the expected benefits of expanding the sales operations of group companies into new geographical markets; the expected benefits of acquisitions; the expected benefits of financing arrangements; and the Company's future financial condition and performance. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from expectations. The risks and uncertainties include: risks associated with the Company's ability to develop and successfully market new services and products (including the risk that such products may not be accepted in the market), risks relating to operations in new markets (including the risk that such operations may not deliver anticipated revenue or profits); risks associated with acquisitions (including the risk that such acquisitions may not deliver the benefits expected by management and risks associated with integration of acquisitions generally); risks that financing arrangements could result in substantial dilution to shareholders because of subscription prices below the current market value of the Company's ADSs or other factors; risks relating to the Company's ability to operate profitably in the future; risks associated with rapid growth; the Company's ability to successfully develop its business in new geographic markets; the early stage of the e-learning market; rapid technological change and competition; and other factors detailed in the Company's filings with the US Securities and Exchange Commission. The Company expressly disclaims any obligation to release publicly any updates or revisions to any such statement to reflect any change in expectations or in information on which any such statement is based. All product names and trademarks mentioned herein are trademarks of Futuremedia or their respective owners.
SOURCE Futuremedia plc
Source: PR Newswire (April 12, 2007 - 9:50 AM EDT)
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