Exhibit 99.1
Press Release
FOR IMMEDIATE RELEASE CONTACT: W. Michael Smith
Executive Vice President and
Chief Financial Officer
(972) 301-2450
www.at-track.com
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@Track Closes Transaction With Minorplanet
RICHARDSON, TEXAS, June 22, 2001 - @Track Communications, Inc. (NASDAQ SCP:
ATMCD), a leading provider of wireless-based vehicle fleet management and
intelligent mobile-asset-tracking solutions, yesterday consummated the
transactions previously approved by @Track stockholders at the June 4, 2001,
Annual Meeting.
@Track issued 30 million shares of common stock in exchange for $10 million in
cash and a royalty-free, 99-year exclusive license to market, sell and operate
Minorplanet's vehicle management information (VMI/TM/) technologies in the
United States, Canada and Mexico.
In addition, @Track also issued 12.7 million shares of common stock to holders
of its 13 3/4% Senior Notes in exchange for the cancellation of such notes
totaling $80.0 million face value. The cancellation of the Senior Notes reduced
the company's outstanding Senior Note debt from $94 million to $14 million and
eliminated $11 million of annual interest expense obligation.
"Our new strategic relationship with Minorplanet marks a significant milestone
for @Track that we believe should lead to substantial growth and increased
stockholder value in the coming years," said Jana Ahlfinger Bell, @Track's
president and chief executive officer. "We expect to leverage this strong
alliance and the VMI technology to aggressively pursue the automatic vehicle
location (AVL) marketplace, which has a total potential of approximately 21
million vehicles, about 20 times the market we have been serving with our
existing product lines."
"Minorplanet has clearly demonstrated that its VMI model delivers a strong value
proposition to its customers, which is why it has been so successful in the
United Kingdom," said Michael Abrahams, chairman of Minorplanet. "The United
States offers the greatest single market opportunity for Minorplanet's VMI
technology, and our alliance with @Track provides a strong infrastructure to
begin offering the benefits of our products to U.S. companies."
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@Track Closes Transaction with Minorplanet - page 2
Key synergies that both @Track and Minorplanet anticipate from their transaction
include:
. @Track's leveraging of technology acquired from Minorplanet to quickly and
cost-effectively develop products for entry into the almost untouched, 21-
million-vehicle AVL marketplace in the U.S.
. Minorplanet's leveraging of @Track's existing nationwide service and
installation capacity, customer service call center, telesales center and
operating infrastructure to speed time to market for its products and
services.
. @Track's utilization of Minorplanet's extensive sales and marketing
experience in offering information solutions to small and medium-sized local
and regional companies with service vehicle fleets.
. @Tracks leveraging of Minorplanet's relationship with GE Capital Fleet
Services to speed @Track's sales of VMI solutions. GE either leases to, or
manages for, its customers in the U.S. more than half a million vehicles.
. @Track's significant reduction of anticipated research and development
expenditures by leveraging Minorplanet's established research and development
team to develop new products and applications.
. @Track and Minorplanet's planned sharing of technologies for enhanced
functionality and features in their trailer-tracking and asset-tracking
products.
. @Track's leveraging of its strategic relationships with telecommunications
companies to achieve competitive communication rates for its VMI digital
wireless solutions.
. Minorplanet's application of @Track's knowledge of the U.S. trucking industry
to enhance its penetration of the trucking markets in its U.K. and other
international locations.
About @Track Communications:
@Track provides intelligent wireless mobile communications, emergency dispatch,
fleet management and mobile-asset-tracking solutions. @Track currently holds 42
U.S. and foreign patents, with additional U.S. and international patents
pending. @Track's technology combines wireless data and voice technologies with
GPS satellite location capabilities for vehicle fleet management. The company's
mobile asset product, TrackWare, combines the technologies of GPS and wireless
control channel messaging to track mobile assets.
About Minorplanet Systems:
Minorplanet Systems is a U.K.-listed PLC traded on the Alternative Investment
Market, which is part of the London Stock Exchange, under the symbol MPS.L. that
produces telemetric-based VMI systems. The company has operations in England,
Ireland, Australia, Spain, Holland, France and Germany. The company currently
has key partnerships with GE Capital Fleet Services, AON Risk Services, ITIS
Holdings PLC, Schmitz Cargobull and BT Cellnet. Founded four years ago in
Leeds, England, Minorplanet has over 1,300 customers, with an installed base of
approximately 40,000 vehicles. For more information about Minorplanet, please
refer to the company's website at www.minorplanet.com.
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@Track Closes Transaction with Minorplanet - page 3
Legal notice to investors: Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the company "expects,"
"believes," "anticipates" or words of similar import. Similarly, statements
that describe the company's future plans, objectives or goals are also forward-
looking statements. Such forward-looking statements generally involve known and
unknown risks, uncertainties and other facts, which may cause the actual
results, performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, the
following: ability to achieve and maintain substantial growth and increased
stockholder value; ability to successfully commercially exploit VMI technology
in North America; ability to successfully commercially exploit Minorplanet's
relationship with GE Fleet Capital Services; ability to reduce research and
development costs; ability to negotiate competitive GSM service rates with GSM
carriers for VMI product offerings; ability to enhance existing products;
ability to successfully commercially exploit Minorplanet's sales and marketing
expertise to increase VMI product offering sales; acceptance of product
offerings; market conditions; general economic and business conditions; business
abilities and judgment of management and personnel; and changes in business
strategy. For a listing of risks applicable to the future prospects of the
company, please refer to the reports filed with the SEC, such as recent 10-K and
10-Q Reports.
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"@Track Communications" and the red orb logotype are trademarks and service
marks of @Track Communications, Inc. "Trackware" is a federally registered
trademark and service mark of @Track Communications, Inc. "Minorplanet" is a
federally registered trademark and service mark of Minorplanet LTD. "VMI" is a
trademark and service mark of Minorplanet LTD.