Exhibit 99.1
FOR IMMEDIATE RELEASE:
NEW CENTURY EQUITY HOLDINGS CORP. ANNOUNCES PRELIMINARY
AGREEMENT TO SETTLE SHAREHOLDER LITIGATION
DALLAS, TEXAS, April 13, 2006 -- New Century Equity Holdings Corp. (OTCBB: NCEH)
("NCEH") announced today that it reached an agreement with all of the parties to
the lawsuit filed by Craig Davis (the "Lawsuit") to settle the Lawsuit and all
claims relating thereto. The principal terms of the settlement (the
"Settlement") are as follows:
- NCEH's insurance carrier will contribute to a settlement fund (the
"Settlement Fund") in connection with the Settlement and also reimburse
NCEH for certain legal and professional fees, which will also be
contributed to the Settlement Fund.
- Parris H. Holmes, Jr., the former Chief Executive Officer and a former
director of NCEH will contribute $150,000 to the Settlement Fund.
- Counsel for the plaintiff in the Lawsuit has requested payment of
$935,000 for fees and expenses relating to the Lawsuit from the
Settlement Fund and the defendants in the Lawsuit have agreed not to
object to the award of such fees and expenses.
- The balance in the Settlement Fund after payment of legal fees to
counsel for the plaintiff is estimated to be approximately $2.26
million, which amount will be distributed to stockholders of NCEH after
the final approval of the Settlement by the Delaware Chancery Court.
The former directors of NCEH who were parties to the Settlement will
not be entitled to receive any distributions from the Settlement Fund.
As part of the Settlement, each of the parties has agreed to a release of claims
in connection with the Lawsuit. Approval of the Settlement by the Delaware
Chancery Court is expected to take two to four months.
Through March 31, 2006, NCEH had incurred approximately $1.6 million in legal
and professional fees in connection with the Lawsuit in excess of the $500,000
retention provided for under NCEH's insurance policy. NCEH plans to vigorously
pursue reimbursement for the legal and professional fees which NCEH's insurance
carrier has not yet agreed to reimburse.
Some statements in this press release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of NCEH to be materially different from any future results,
performance or achievements expressed or implied by forward-looking statements.
Refer to NCEH's filings with the Securities and Exchange Commission for further
discussion of such factors. The forward-looking statements are made as of the
date of this press release and NCEH assumes no obligation to update such
statements.
