EXHIBIT 99.3
Dale Christensen Sean Collins
CFO Corporate Communications
Micro General Corporation Coffin Communications
949-622-4986 818-789-0100 ext. 102
dchristensen@microgeneral.com sean.Collins@coffincg.com
FOR IMMEDIATE RELEASE
MICRO GENERAL CORPORATION PURCHASES ADDITIONAL
REALEC TECHNOLOGIES OWNERSHIP
MOVE ENHANCES AND CONSOLIDATES FINANCIAL RESULTS OF REALEC WITH MICRO GENERAL
SANTA ANA, CALIF. -- DECEMBER 13, 2001 - Micro General Corporation
(NASDAQ:MGEN), the leading provider of production and workflow software systems
to the title and real estate industries, today announced the purchase of an
additional nine percent ownership in RealEC Technologies, the industry's leading
secure B2B e-commerce exchange for real estate transactions.
Since RealEC Technologies was founded in May 2000, Micro General has
owned 6.5 M shares of non-voting convertible preferred stock, which assuming
conversion into common shares, would represent a 47 percent ownership in RealEC
Technologies. Other owners of convertible preferred stock include Stewart
Information Services (22 percent ownership) and Land America Financial Group (22
percent ownership). Micro General has purchased 1.3 M shares of RealEC common
stock currently issued and outstanding, which represents 100 percent of the
outstanding common stock, and represents a diluted ownership of nine percent.
Micro General has issued 153,893 additional shares of restricted common
stock to purchase this additional ownership. Combined with its convertible
preferred share position, Micro General now owns 56 percent of RealEC
Technologies.
As a result of this purchase, Micro General will begin to consolidate
RealEC Technologies results with its results of operations in the fourth
quarter, 2001. In the 2001 fourth quarter, RealEC is expected to contribute an
estimated $900,000 in additional consolidated revenue and contribute an
operating loss of less than $200,000. RealEC Technologies is experiencing rapid
growth and the Company expects RealEC Technologies will contribute substantial
revenue and profits in 2002 and future years.
"This transaction is a key component of our strategic positioning as we
move into 2002," said Micro General CEO John Snedegar. "Serving six of the top
ten mortgage originators in the country and adding new lenders and service
providers at a very aggressive pace during the past six months have positioned
RealEC's e-business solutions as the #1 B2B electronic exchange in the
end-to-end electronic mortgage transaction arena," he said.
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MICRO GENERAL ANNOUNCES REALEC COMMON STOCK PURCHASE -- PAGE 2 OF 2
"RealEC is very pleased with the broad opportunities that Micro General
ownership provides, along with Stewart Title and Land America," said RealEC
president, Jeff Sanderson. "These three owners are also strategic partners that
continually provide RealEC with new growth opportunities," he said.
RealEC is designed to facilitate the origination, servicing, and closing
of real estate transactions and to enable real estate practitioners to
significantly enhance their businesses. The RealEC Exchange is an intelligent
routing process that offers traditional transaction capability and provides a
standardized connectivity and data transport functionality for originators and
vendors involved in the transaction. It handles data translation and facilitates
rapid information flow while integrating seamlessly with vendors' production
systems.
RealEC iSelect(TM) offers order management, status tracking and
coordination by intelligently managing vendor selection, product selection and
coordinating the flow of an entire real estate transaction process using a
software solution and tools that enable online collaboration.
ABOUT MICRO GENERAL
Micro General Corporation is the leading provider of production and workflow
software systems to the real estate title and escrow industries. The Company's
additional competencies include managed application services, application
development and integration, network, data and infrastructure management and IT
outsourcing. Micro General and its operating subsidiaries employ more than 600
individuals nationwide, primarily in technical positions. To learn more about
Micro General Corporation, please visit: www.microgeneral.com. For more
information on RealEC Technologies, call 949-622-3927 or visit: www.realec.com.
For more information contact Dale Christensen (Corp. IR) 949-622-4986 or Sean
Collins (Corp. Comms.) 818-789-0100.
This press release contains forward-looking statements. The words "believe,"
"expect," "intend," "anticipate," "will," and "project," and similar expressions
identify forward-looking statements, which speak only as of the date the
statement was made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements are inherently subject
to risks and uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject include, but are
not limited to, the effect of government regulation, competition and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.
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