EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For additional information contact:
Teresa M. Gyulafia Jeanne Prayther
Director of Marketing Communications Chief Financial Officer
+ 1-561-981-2119 + 1-561-981-2004
tgyulafia@daleen.com jprayther@daleen.com
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DALEEN ANNOUNCES BOARD APPROVAL OF REVERSE STOCK SPLIT
Preliminary Proxy Outlines Company's Proposal to Go Private
BOCA RATON, Fla. - January 28, 2004 - Daleen Technologies, Inc. (OTCBB:
DALN.OB) (the "Company" or "Daleen"), a global provider of licensed and
outsourced billing and customer management, operational support systems (OSS)
and revenue assurance solutions for traditional and next generation service
providers, today announced that its Board of Directors has unanimously approved
a 1-for-500 reverse stock split of the Company's Common Stock. The Board
unanimously recommends that the Company's stockholders approve the reverse
split. If the reverse split is approved and implemented, the Company expects to
have less than 300 stockholders of record, which would enable the Company to
voluntarily terminate the registration of its Common Stock under the Securities
Exchange Act of 1934 and go private. As a private company, Daleen would no
longer be required to file periodic reports and other information with the
Securities and Exchange Commission (the "SEC").
"At this point in our evolution, being a public company simply does not
provide the requisite value to Daleen or its stockholders," said Gordon Quick,
president and CEO of Daleen. "These actions will significantly reduce the amount
of time and money we are currently spending to comply with SEC reporting
requirements, and allow us to more appropriately focus those resources on the
long-term goals of our business. We expect a substantial decrease in
professional fees, insurance, accounting costs, and printing and mailing costs."
Daleen has filed a preliminary proxy statement and Schedule 13E-3 outlining
the reverse split and going private transaction with the SEC. The proposed
reverse split is subject to the affirmative vote by the holders of a 66 2/3%
majority of the outstanding voting power of the holders of Daleen Common Stock
and Series F Preferred Stock, voting together as a single class. In addition,
Daleen is seeking approval of the reverse split by an affirmative vote by the
holders of a majority of the outstanding shares of Common Stock. The Company's
Board of Directors will retain discretion whether or not to implement the
reverse split for up to 90 days following the date of stockholder approval.
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If the reverse split is approved and implemented, stockholders holding
fractional shares after the reverse split will receive a cash payment equal to
$.30 per pre-split share of Daleen Common Stock in lieu of fractional shares.
Stockholders holding less than 500 shares of Daleen Common Stock before the
reverse split will be cashed out at the same rate and will have no further
equity interest in the Company.
Solicitation of the Company's stockholders with respect to the proposed
reverse split will be made pursuant to a definitive proxy statement to be mailed
to the Company's stockholders. All stockholders are advised to read the
definitive proxy statement and Schedule 13E-3 carefully because these documents
will contain important information about the reverse split and information
concerning the record date and time, as well as the date and place of the
special meeting of the Company's stockholders to vote on the proposed split.
About Daleen
Daleen Technologies, Inc. is a global provider of high performance billing and
customer care, OSS revenue assurance software, with a comprehensive outsourcing
solution for traditional and next generation service providers. Daleen's
solutions utilize advanced technologies to enable providers to reach peak
operational efficiency while driving maximum revenue from products and services.
Core products include its RevChain(R) billing and customer management software,
Asuriti(TM) event management and revenue assurance software, and
BillingCentral(R) ASP outsourcing services. More information is available at
www.daleen.com.
Information with Respect to Forward-Looking Statements. Statements in this
release may be considered "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. These include statements
regarding the intent, belief or current expectations of the Company and the
assumptions on which these statements are based. Prospective investors are
cautioned that any such forward- looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual results
to differ materially from those in forward-looking statements include business
concentration; the Company's ability to continue as a going concern; the
Company's ability to successfully implement its aggregation strategy; the
Company's inability to achieve profitability; customers' and potential
customers' market position and lack of financial resources; the costs and
success of the Company's international expansion; the ability of the Company to
develop and protect its intellectual property; the Company's relationship with
third party software vendors and service providers; competition; the Company's
ability to retain senior management and other key personnel; low price and
volatility of the Company's common stock and the impact of the delisting from
The Nasdaq SmallCap Market; the on-going securities class action against the
Company; and the rights and preferences of the series F convertible preferred
stock. These factors and others are described in the Company's most recent SEC
filings including its 2003 Annual Meeting Proxy Statement and the most recently
filed Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company
undertakes no obligation to update the forward-looking statements in this news
release.
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(C)Daleen Technologies, Inc. All rights reserved. Daleen, the Daleen logo,
RevChain, Asuriti, and BillingCentral are trademarks, or service marks, of
Daleen Technologies, Inc. in the United States and other countries. All other
trademarks and registered trademarks are property of their respective owners.