U.S. WIRELESS DATA, INC.
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Delivering The New Standard Wireless Express
In Transaction Processing Payment Service
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U.S. WIRELESS DATA CONCLUDES PRIVATE EQUITY FINANCING TO FUND
IMPLEMENTATION OF NEW BUSINESS PLAN
New York, NY - June 1, 2000 - U.S. Wireless Data, Inc. (OTCBB: USWDA), whose
proprietary technology brings together three rapidly growing industries -
transaction processing, wireless data transport and the Internet - to enable
wireless transaction processing, announced today that it has closed on the final
portion of its previously announced private offering of securities to accredited
investors, bringing total gross proceeds to $55.8 million.
This is the final closing for securities offered under this private placement,
and completes a funding led by ComVest Capital Partners (the investment
affiliate of Commonwealth Associates) and a syndicate of investors, including
Sandler Capital Management, RS Investment Management, Archery Capital, Shea
Ventures, Orbitex Management, and Winfield Capital. A number of officers and
directors of the Company also participated in the offering. Commonwealth
Associates acted as financial advisor and placement agent in connection with the
offering.
Hannah Stone, a partner at Sandler Capital, commented on the firm's investment.
"We believe that U.S. Wireless Data is well positioned to capitalize on its
integral role as the gateway for wireless transaction processing. As demand for
wireless data explodes, the Company's technology and management team also have
the ability to pursue opportunities in other complementary vertical markets."
Dean M. Leavitt, USWD's CEO, stated, "It was gratifying to see the response to
our equity offering and the capital market's endorsement of our technology and
growth strategy. We have made important strides over the past year, with limited
resources, to position the company to capitalize on the emerging demand for
wireless transaction processing. We now have the capital and personnel
infrastructure to accelerate our strategy to make U.S. Wireless Data the
dominant player in this arena."
USWD's strategy is to establish the Company's Wireless Express Payment Service
("WEPS") as the global standard for wireless point-of-sale ("POS") transaction
processing. WEPS provides for a seamless interface between wireless POS
terminals and credit card processors. The speed and mobility offered by WEPS has
the potential to open up vast new markets that have historically not accepted
card payments, including quick service restaurants, delivery services and the
transportation industry, to name a few.
Central to the Company's strategy is its position as a neutral enabler of
wireless transaction services to the payment processing industry. Specifically,
USWD remains neutral with respect to terminal manufacturers, wireless carriers
and card processors. WEPS is designed to serve as a gateway joining all parties
in a wireless POS transaction by delivering transactions over major wireless
carriers to transaction processors that have established WEPS connectivity. In
addition, WEPS' Internet-based tools offer on-line, real-time transaction
monitoring and reporting, remote diagnostics and automated terminal activation.
Note: The securities referred to above have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements.
Forward-Looking Statements: Except for historical information contained herein,
this news release contains forward-looking statements that involve risk and
uncertainties. While the management of the Company believes that current
expectations reflect reasonable assumptions, actual results could vary
materially depending on risks and uncertainties including, but not limited to:
success of the Company's new business plan; market acceptance of the Company's
products; the Company's requirement for additional capital; the failure to
execute definitive agreement with potential strategic alliance partners;
technological change; system capacity constraints or system failures; the
ability of the Company to develop new distribution channels; or competition. The
Company assumes no obligation to update this information. The reports filed by
the Company pursuant to United States securities laws contain a detailed
discussion of these factors and certain other risks to which the Company is
subject. Management of the Company advises the reader to review these reports
(which are available from the United States Securities and Exchange Commission's
EDGAR database at http://www.sec.gov and at various other reference facilities
in the United States).
Company Contact: Investor Relations Contact:
Dean M. Leavitt Lippert/Heilshorn & Associates, Inc.
Chairman and CEO John Nesbett/William Walkowiak, CFA
(212) 750-7766 (212) 838-3777
elisa@lhai.com