E-Rex, Inc. Files Complaint with the Securities and Exchange Commission Against Minority Shareholder Group; Alleges Attempt at Illegal Takeover, Stock Price Manipulation and Smear Campaign
MIAMI, March 27, 2002 (PRIMEZONE via COMTEX) -- Today, E-Rex, Inc. (OTCBB: EREX)
filed a formal complaint with the Securities and Exchange Commission against a
minority group of shareholders led by Terry Shores and Chris Ford. The complaint
alleges that Ford and Shores, along with a small group of minority shareholders,
have been manipulating the Company's stock price by continuously posting false
and misleading information on the Internet and in press releases, and they have
been attempting an illegal takeover of E-Rex since August 2001 in violation of
the tender offer rules of the Securities Exchange Act. The complaint further
alleges that the group failed to make necessary filings with the Company and the
Securities and Exchange Commission regarding their ownership position in the
Company. The complaint also alleges that the group's recently filed civil action
is part of a multifaceted and coordinated program to lower the Company's stock
price and to slander and replace current management.
"The plaintiffs have repeatedly declined our invitations, beginning back in
August of 2001, to review our finances and/or hire an independent third party
auditor," stated Don Mitchell, E-Rex Chairman. "Instead they have chosen to
victimize E-Rex and other shareholders by posting inaccurate and defamatory
statements regarding the Company, its future prospects, and management, using
Internet-based stock discussion message boards."
In responding to the group's civil action and at E-Rex's formal request, Judge
James C. Mahan recently appointed a special master to audit E-Rex's financial
records at the plaintiff's expense. The judge has not granted the plaintiff's
request to appoint a receiver to temporarily run the Company, but has instead
continued the hearing on this matter. The case has not been granted class action
status.
"We are working closely with the special master and will gladly provide any
financial records that he might request. We offered to do this months ago,"
stated Carl Dilley, E-Rex President and CEO. "It is unfortunate that we have to
divert precious resources to address this matter, especially since we are so
close to officially beta testing our first Dragonfly prototypes."
Dragonfly Product Development Nearing Beta Phase
Progress reports from development partners at Valcom, Ltd. indicate that the
prototype unit's external cases, touch sensitive display, paper feed, color
printing unit, scanner, fax, infrared data port, compact flash memory, and most
internal drivers and interface software are already fully operational. Dragonfly
is presently in the debugging and fine-tuning stage. Recent photos of the
prototype units are now available.
The dedicated development team will continue working full-time on project
completion and current estimates indicate official beta testing to commence once
the final printed circuit boards are delivered and the remaining software and
port testing is completed, expected shortly.
During the coming months Management intends to provide several in-person
demonstrations for potential manufacturing and marketing partners. The Dragonfly
is specifically designed to be compatible with a variety of networks, programs,
and external devices, making it the perfect platform for joint ventures.
"E-Rex is now actively seeking a complementary arrangement to manufacture and
market the new Dragonfly. Once our prototypes are ready we intend to focus our
energies on making that happen," stated Dilley.
About Dragonfly
The Dragonfly Handheld PC and Document Management Appliance combines the latest
portable technology with the office tools today's business users require, all in
a stand-alone unit about the same size and weight of a laptop computer. Users
can surf the Internet, send and receive email, color print on plain paper, copy,
fax, and scan -- all from one unique portable device.
A 206 MHz Intel StrongArm processor running the Windows Handheld PC (CE)
operating system powers Dragonfly. Onboard it has 32 MB of upgradeable SDRAM and
can accommodate hi speed Flash RAM from 48 to 440 MB. The keyboard is 2/3rd of a
full size keyboard, and the display is a touch-sensitive color LCD. The unit
also houses color-printing technology from the Canon Portable Bubble Jet, a
fully functional fax, copier, scanner, dual PCMCIA slots, serial, parallel, USB,
and infrared ports.
About E-Rex, Inc.
Headquartered in Miami, E-Rex, Inc., (OTC Bulletin Board: EREX), is a publicly
traded technology company dedicated to designing and the future production of
stand-alone user friendly portable devices and direct Internet access products
targeted at mobile enterprise users.
This press release may contain forward-looking information within the meaning of
Section 27A of the Securities Act of 1933 or Section 21E of the Securities and
Exchange Act of 1934 and is subject to the safe harbor created by these
sections. E-Rex, Inc. assumes no obligation to update the information contained
in this press release. Certain information included herein may contain
statements that are forward-looking, such as statements relating to plans for
future expansion and other business development activities as well as operating
costs, capital spending, financial sources, and the effects of competition. Such
forward-looking information is subject to changes and variations which are not
reasonably predictable and which could significantly affect future results.
Accordingly, such results may differ from those expressed in any forward-looking
statements made by or on behalf of the Company.
SUBJECT: Law & Legal Issues
KEYWORDS: HARDWARE, TECHNOLOGY, LEGAL
CONTACT: E-Rex, Inc., Miami
Mitch Ackles, Corporate Communications Director
305-895-3350
mackles@e-rex.net
.......According to the Great Pumpkin, ".....You're in .....iHub....., Charlie Brown....."!!!
