Exhibit 99.1
May 2, 2001 Denver, Co. / Businesswire / NxGen Networks, Inc., (OTC.BB: NXNW), a
global telecommunications provider, announced today that it has signed a letter
of agreement with Seedling Technologies Corp., (OTC.BB: SEED), to acquire
SouthernPlanet, a wholly owned subsidiary of Seedling. The merger brings
together the strengths of both companies,allowing them to better serve their
respective customers by blending the Internet and IT strengths of SouthernPlanet
with the IP transport capability and technical infrastructure of NxGen.
Through the acquisition, which is expected to close by June 15, Seedling will
exchange its ownership of Southernplanet with NxGen and will retain 53% of the
surviving company.
Douglas B. Spink, Chairman and CEO of Seedling Technologies Corp. commented that
"this transaction builds on the value Seedling has helped to create at
Southernplanet. We are proud of our Southernplanet team and what they've been
able to build in Latin America - they have perservered through trying times to
reach this milestone. I have tremendous confidence in Mark Sampson's skills as
an operator and -- entrepreneur, and we at Seedling look forward to working with
the NxGen team to build their company into an international telecom powerhouse.
Southernplanet and NxGen share so many overlapping customer segments and
technical skills; it is really a terrific combination."
Mark Sampson, Chairman and CEO of NxGen Networks Inc., said, "We are very
excited about our acquisition of Seedling's Southernplanet operations. Working
with Doug and the Seedling team reinforces what can be done when companies put
their heads together with a focus on creating value for our customers and
shareholders. Southerplanet brings a skill set and customer base that
compliments NxGen tremendously. Together, we will provide a more comprehensive
and robust suite of services for our customers."
Southernplanet will continue to provide one-stop connectivity and network
integration services to its clients in Santiago, Chile while expanding into
other markets in Latin America. These services will be overlayed with NxGen's
core service offering of cost-effective, toll quality voice, using IP over a
fully managed ATM network. The respective management teams of the two companies
will combine to manage the growth of the new company, and no layoffs are
expected as part of the transaction.
About Seedling
Founded in 1998, Seedling specializes in identifying and supporting innovative,
technology enabled companies. Seedling's management then takes a proactive role
in supporting profitable growth, working together with the management of its
portfolio companies to provide access to key services and relationships.
Additionally, Seedling acts as a catalyst to revive the operations of troubled
public technology companies.
Revenue is derived from transactional fees, ongoing consultative work, and sale
proceeds from previous direct investments. Seedling's principals have hands-on
experience helping more than 20 successful technology companies from founding
through sale or other exit opportunities. For additional information about
Seedling, visit the company's Web site at www.seedling.net.
About NxGen Networks
NxGen Networks, Inc. (OTC.BB: NXNW), is a global telecommunications company,
which integrates the latest in next generation voice and data switching
technologies onto a single high speed IP/ATM network. The network provides
advanced voice and data services impossible to recreate with traditional circuit
switching technology for Fortune 5000 Companies, Enhanced Service Resellers,
Long Distance Carriers, Competitive Local Exchange Carriers (CLECs),
Applications Services Providers (ASPs) and large Internet Service Providers
(ISPs). For additional information about NxGen Networks, visit the company's Web
site at www.nxgen-net.com.
This press release includes forward-looking statements. Investors are cautioned
that all forward-looking statements contain risks and uncertainties. Certain
factors, many of which are beyond the control of each Company, could cause
actual results to differ materially from those contemplated by forward-looking
statements. There can be no assurance that actual results, events or
developments will occur or be realized as contemplated by such forward looking
statements.
Except for historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risk and
uncertainties, including but not limited to economic, competitive, governmental,
political and technological factors affecting the company's revenues,
operations, markets, products and prices and other factors discussed in the
company's various filings with the Securities and Exchange Commission.
CONTACT:
Paul Peterson, President
Seedling Technologies Corp.
800-893-8894
Bill Neale, CMO
NxGen Networks, Inc.
bneale@nxgen-net.com
604-230-8996
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