Exhibit 99
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NEWS RELEASE
Contact: Irwin L. Gross
Chairman and CEO
The Network Connection, Inc.
(215) 972-8191
Todd Fromer
Managing Director
KCSA Public Relations Worldwide
(212) 896-1215
FOR IMMEDIATE RELEASE
THE NETWORK CONNECTION RESTRUCTURES GLOBAL OPERATIONS
TO FOCUS ON UK BASED PASSENGER RAIL DIVISION
PHILADELPHIA, PENNSYLVANIA, MARCH 7, 2001 -- THE NETWORK CONNECTION, INC.
(NASDAQ:TNCX), A MAJORITY OWNED SUBSIDIARY OF GLOBAL TECHNOLOGIES, LTD. (NASDAQ:
GTLL), announced today that it has re-evaluated certain aspects of its business
and will be focusing its efforts on the Company's operations in the United
Kingdom and discontinuing and suspending its domestic operations.
Management has determined that in the current business environment, it is
important to focus all of the Company's resources on the one vertical market
that can offer its shareholders the highest potential return on their
investment. After careful deliberation, management concluded that the
international inter-city passenger rail market provides the Company with the
business opportunity with the highest degree of upside potential.
The Company's United Kingdom subsidiary, TNCI-UK has submitted pricing proposals
to five major train operators for new and retrofit installations of
PROJECTRAINBOW(TM) systems, representing more than 125,000 seats.
Due to the scope and scale of these contracts, and TNCI's financial condition,
TNCI-UK has entered the final stages of discussions for a "teaming agreement"
with a multi-billion dollar US manufacturer to jointly develop, install and
maintain TNCI-UK's interactive information and entertainment system for the
passenger rail market. The teaming agreement will provide that the parties have
a period of time to determine whether the passenger rail business would be
viable. If it is determined to proceed after that test period, the parties will
seek to enter into a long-term agreement. There can be no assurances that
TNCI-UK will successfully finalize the "teaming agreement" or that the testing
will be successful, or that if successful, TNCI-UK will be able to conclude such
a long-term agreement.
If consummated, the proposed relationship would benefit TNCI-UK in several key
ways:
* It would provide TNCI-UK with credibility with its prospects that it
can develop, install and support its systems.
* The proposed partner has vast experience in mobile and "ruggedized"
communication platforms.
* The partnership would allow TNCI-UK to reduce its upfront and on-going
capital requirements.
* It would provide the necessary scalability, so that TNCI-UK could more
comfortably support multiple contracts.
In order to enable TNCI-UK to fund its ongoing operations, including the
obligation under the proposed teaming agreement, Global Technologies, Ltd.,
TNCI-UK's indirect parent, is considering making an investment directly into
TNCI-UK in exchange for equity.
In light of the above opportunity and the Company's limited financial resources,
effective immediately the Company is closing certain of its US-based operations
- - which supported the cruise ship, education and corporate training markets -
and suspending the hotel operations. Management determined, given the current
financial condition of the Company that these markets were too expensive to
continue to pursue. This decision has allowed the Company to eliminate a very
large supporting staff and corresponding overhead expense. TNCi-UK's passenger
rail operations will continue from its current location in Derby, UK.
"This was a very difficult decision for us, one that was made after careful
deliberation," stated Irwin Gross, CEO of The Network Connection. "We believe
that the train initiative still represents a significant opportunity, which
could offer an upside for our shareholders."
ABOUT THE NETWORK CONNECTION, INC.:
The Network Connection, Inc. (NASDAQ: TNCX - news) www.tncx.com has developed
broadband entertainment, information and e-commerce systems for the
"away-from-home" marketplace. The Company's fully-interactive, all-digital and
high speed information and entertainment platforms are designed to provide
consumers Internet and e-mail access with such customizable services as
on-demand films, videos and music, video games and casino gaming, tour and
reservation information, as well as IP telephony, courseware and lectures, and
other Internet-based content and commerce applications. The Network Connection
has developed specific systems for the hospitality market (InnView(TM)), the
cruise ship industry (CruiseView(TM)), the long haul passenger train market
(ProjecTRAINbow(TM)), as well as for corporate training and educational
institutions (EduView(R)). However, for reasons discussed in this news release,
the Company has decided to focus its efforts solely on its operations in the
United Kingdom and its system for the long haul passenger train market.
The Network Connection is a majority owned subsidiary of Global Technologies,
Ltd. (NASDAQ: GTLL - news). Global Technologies, Ltd., is a technology incubator
that invests in, develops and manages emerging growth companies focused on
e-commerce, networking solutions, telecommunications and gaming.
# # #
THIS NEWS RELEASE INCLUDES CERTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING
STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS AND PREDICTIONS REGARDING
DISCUSSIONS WITH POTENTIAL CUSTOMERS, PROJECTIONS OF REVENUE, INCOME OR LOSS AND
CAPITAL EXPENDITURES, STATEMENTS REGARDING FUTURE OPERATIONS, FINANCING NEEDS,
PLANS RELATING TO PRODUCTS OR SERVICES OF THE COMPANY, ASSESSMENTS OF
MATERIALITY, AND PREDICTIONS OF FUTURE EVENTS, AS WELL AS ASSUMPTIONS RELATING
TO THE FOREGOING. IN ADDITION, WHEN USED IN THIS DISCUSSION, THE WORDS
"ANTICIPATES," "BELIEVES," "ESTIMATES," "EXPECTS," "INTENDS," "PLANS," AND
VARIATIONS THEREOF AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO
VARIOUS RISKS AND UNCERTAINTIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM
THOSE CURRENTLY ANTICIPATED DUE TO A NUMBER OF FACTORS, INCLUDING, BUT NOT
LIMITED TO, THE COMPANY'S ABILITY TO MEET ITS CAPITAL NEEDS, ITS ABILITY TO
MANAGE RAPID GROWTH AS A RESULT INTERNAL EXPANSION, THE IMPACT OF DEMAND AND
MARKET ACCEPTANCE OF OUR PRODUCTS AND SERVICES, NEW PRODUCT DEVELOPMENT AND
SERVICE OFFERINGS, RELIANCE ON KEY STRATEGIC ALLIANCES, THE REGULATORY
ENVIRONMENT, FLUCTUATIONS IN OPERATING RESULTS, INABILITY TO COMPLETE FINANCING
TRANSACTIONS, AND OTHER RISKS DETAILED FROM TIME TO TIME IN THE COMPANY'S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
THIS RELEASE IS AVAILABLE ON THE KCSA PUBLIC RELATIONS WORLDWIDE WEBSITE AT
WWW.KCSA.COM