[INCENTRA LOGO OMITTED]
1140 PEARL STREET, BOULDER, COLORADO 80302
EXHIBIT 99.1
NEWS RELEASE FOR MARCH 30, 2005 AT 7:00 AM EST
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CONTACTS FOR INCENTRA SOLUTIONS:
Allen & Caron Inc. Incentra Solutions, Inc.
Jill Bertotti (investors) Thomas P. Sweeney III
JILL@ALLENCARON.COM Chairman and CEO
Len Hall (financial media) mail to: mknaisch@fpdigital.com (303) 449-8279
len@allencaron.com
(949) 474-4300
INCENTRA SOLUTIONS ACQUIRES PWI TECHNOLOGIES, LARGEST SOLUTIONS
PROVIDER/SYSTEMS INTEGRATOR IN NORTHWEST
IMMEDIATELY ACCRETIVE, FURTHER EXPANDS DISTRIBUTION AND MARKET REACH
BOULDER, CO, MARCH 30, 2005 - Incentra Solutions, Inc. (OTCBB: ICEN) today
announced that it has acquired privately-held PWI Technologies (www.pwi.com) of
Kirkland, WA, the leading systems integrator in the Northwest. The acquisition,
which follows Incentra's purchase last month of STAR Solutions, LLC, a leading
systems integrator headquartered in San Diego, is immediately accretive. The
acquisition of the PWI and STAR businesses adds more than $38 million of
annualized revenue based upon their 2004 historical performance. Chairman and
CEO Thomas P. Sweeney said the acquisitions of both PWI and STAR are
cornerstones of Incentra's strategy to substantially grow revenues by augmenting
its product offerings and expanding its market reach throughout the western US
through acquiring systems integrators with existing direct sales organizations
serving the enterprise market.
PWI Technologies is a leading systems integrator and solutions provider of
Information Technology consulting, storage solutions, hardware, software and
selected managed services to a large base of customers in financial services,
communications, government, healthcare and manufacturing. PWI revenue in 2004
was approximately $21.3 million.
The purchase price of PWI consisted of $2.3 million in cash and approximately
$1.7 million in Incentra Solutions common stock. In addition, the former
shareholders have the opportunity to earn an additional $200,000 in cash and
$1.0 million in Incentra common stock based upon achieving certain earn out
requirements. Should PWI exceed the earn out requirements, its former
shareholders can earn additional Incentra Solutions common stock equitable to
PWI's EBITDA contribution over the earn out requirement.
With the acquisition of PWI, Incentra Solutions further expands its
opportunities to deliver complete solutions, which include professional
services, hardware & software, remote monitoring and management services and
solution financing. This offering includes higher margin opportunities with
first call maintenance support delivered 24x7 from the Incentra Solutions
network operations center.
"The acquisition of PWI positions Incentra Solutions to deliver complete
solutions to customers in the Northwest region and positions it as an unique
provider of complete solutions with first call support," Sweeney said. "PWI
management and employees have built a solid track record of
delivering high quality products, services and support and have established a
respected and loyal customer base. Customers are increasingly seeking an IT
partner that can provide complete solutions and PWI can now expand its offerings
through Incentra to be this trusted solutions provider. Combining Incentra
Solutions managed services and storage products and engineering expertise with
PWI's offerings provides the opportunity to take a larger percentage of the
total spend per project and increases our capability to solve customers'
on-going operations and outsourcing needs," Sweeney added.
PWI will operate as a wholly-owned subsidiary of Incentra Solutions and be
managed by PWI Technologies President Barry R. Andersen. PWI's 35 employees will
continue to be based in its offices in Kirland, WA and Beaverton, OR.
"Becoming part of Incentra Solutions is a positive transaction for our business,
our customers and our employees," Andersen said. "In our 15 years in business,
we have always been proud of the superior products and services we deliver to
our customers in the Northwest. With Incentra Solutions skills in storage
solutions, its expanded services set and 24x7 Storage Network Operations center,
we can now increase the scope of our product offerings including an expanded
support organization and remote monitoring and backup services. This will
provide us with a number of new revenue opportunities in the near-term and
position us for solid long term growth."
Inveraray Partners headquartered in the San Francisco Bay Area advised Incentra
Solutions regarding the acquisition. The required financing was provided by
Wells Fargo Bank, N.A.
ABOUT PWI TECHNOLOGIES
PWI Technologies is the largest systems integrator providing outsourced
Information Technology solutions to a large base of customers in the Pacific
Northwest. The Company's engineers are the first to test the latest systems and
software, and PWI has built a solid record and reputation as a leader in the
integration of disparate technologies and legacy systems into seamless business
solutions.
ABOUT INCENTRA SOLUTIONS, INC.
Incentra Solutions, Inc. (www.incentrasolutions.com, OTCBB:ICEN) is a provider
of complete IT & storage management solutions to broadcasters, enterprises and
managed service providers worldwide. The Company operates a Broadcast & Media
Division, Front Porch Digital (www.fpdigital.com), that provides total digital
archive management and transcoding solutions. Wholly-owned subsidiaries,
ManagedStorage International (MSI, www.msiservice.com) and STAR Solutions
(www.star-solutions.com) provide professional services, hardware & software
products, IT outsourcing solutions and financing options to enterprise and
service provider markets.
INCENTRA SOLUTIONS FORWARD LOOKING STATEMENTS
Certain information discussed in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the federal securities laws. Although the
Company believes that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time made, it can give
no assurance that its expectations will be achieved. Readers are cautioned not
to place undue reliance on these forward-looking statements. Forward-looking
statements are inherently subject to unpredictable and unanticipated risks,
trends and uncertainties such as the Company's inability to accurately forecast
its operating results; the Company's potential inability to achieve
profitability or generate positive cash flow; the availability of financing; and
other risks associated with the Company's business. For further information on
factors which could impact the Company and the statements contained herein,
reference should be made to the Company's filings with the Securities and
Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports
on Form 10-QSB and Current Reports on Form 8-K. The Company assumes no
obligation to update or supplement forward-looking statements that become untrue
because of subsequent events.
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