EXHIBIT 99.1
FOR MORE INFORMATION CONTACT:
PUBLIC RELATIONS:
Ilya Welfeld
201-439-1010
ilya@roomlinx.com
INVESTOR RELATIONS
Thomas J. Rozycki, Jr.
Cubitt Jacobs & Prosek
212-279-3115 x208
tom@cjpcom.com
ROOMLINX ANNOUNCES LETTER OF INTENT TO ACQUIRE SUITESPEED
Combined Company Will Service 200 Hotels Representing
More than 35,000 Rooms Nationwide
HACKENSACK, NEW JERSEY (APRIL 4, 2005) -RoomLinX, Inc. (OTCBB: RMLX.OB), a
leading provider of wireless high-speed network solutions to the hospitality
industry, today announced that it has signed a Letter of Intent to acquire
SuiteSpeed, Inc., a leading provider of wireless solutions for hotels. Under the
terms of the non-binding arrangement, RoomLinX will issue 21,450,000 shares of
its common stock to acquire the outstanding stock of SuiteSpeed. The shares will
have piggy-back registration rights commencing six months after the completion
of the acquisition.
"Guests now demand quality WiFi service from the hotel industry," said Aaron
Dobrinsky, CEO of RoomLinX. "As one of the few U.S. public companies in this
space, we are uniquely positioned to leverage our scope and competitive
advantages for the benefit of our customers and shareholders. Our proposed
acquisition of SuiteSpeed demonstrates our commitment to our stated strategy: to
grow through acquisitions as well as organically. The addition of SuiteSpeed
enhances our leadership position in the industry. In addition to adding to the
number of rooms under management, we believe that the combined companies will be
positioned to enjoy economies of scale on an operational level as well. This
will allow us to continue to offer value added products to our customers."
SuiteSpeed, a provider of high-speed wireless Internet access solutions, has
delivered WiFi services to hotels since 2000. The company serves brand-name
properties such as the Renaissance, Courtyard by Marriott, Holiday Inn,
Radisson, Hampton Inn and Best Western.
Consummation of the transaction is subject to completion of due diligence,
execution of a definitive agreement and closing conditions to be provided for in
the definitive agreement. Customers will experience no disruption in service,
and their company contact points will remain unchanged. Upon closing, SuiteSpeed
founder Mike Wasik will join the executive team at RoomLinX.
"SuiteSpeed is very excited about combining operations with RoomLinX," said Mike
Wasik, founder and CEO of SuiteSpeed. "We have strong operational synergies and
share philosophies that should greatly benefit our existing customers,
employees, and shareholders. Both organizations are passionate about providing
`Best in Class' service and support to our existing customers. Together we will
continue to help hotels provide important amenities to their guests, such as
centralized printing, VOIP, and automated concierge services. We are confident
that our customers will recognize the quality and market leadership that the
combined entity will provide."
RoomLinX also announced that Bob Lunde will be stepping down from its board of
directors. Bob was an executive of the company during last year's merger with
Arc Communications and has served as an active board member since then. The
Company thanks Lunde for his years of service.
ABOUT ROOMLINX, INC.
RoomLinX is a pioneer in Broadband High Speed Wireless Internet connectivity,
specializing in providing the most advanced WI-FI Wireless and Wired networking
solutions for High Speed Internet access to Hotel Guests, Convention Center
Exhibitors, Corporate Apartments, and Special Event participants. Designing,
deploying and servicing site-specific wireless networks for the hospitality
industry is RoomLinX's core competency.
# # #
The statements contained in this press release of RoomLinX, Inc. (the "Company")
that are not based on historical fact are "forward-looking statements". Such
forward-looking statements involve risks and uncertainties, including but not
limited to: (i) the Company's history of unprofitable operations, both with
respect to its core business and the business previously performed by Arc
Communications, (ii) the significant operating losses that the Company has
incurred to date, (iii) the Company's lack of liquidity and need for additional
capital which it may not be able to obtain on favorable terms or at all, (iv)
the "going concern" qualifications that accompanies the Company's financial
statements, which, among other things, may make it more difficult for the
Company to raise the additional capital that it requires in order to remain in
business, (v) the fact that the Company has been required to operate with a
working capital deficit, which limits its operating flexibility and
opportunities, (vi) the substantially greater resources available to many of the
Company's competitors, (vii) the Company's expectation that it will continue to
operate at a loss for the foreseeable future, (viii) the fact that the Company's
lack of capital substantially restricts its flexibility and opportunity to
increase its revenues, (ix) the importance to the Company that its offerings
remain technologically advanced if the Company is to attract new customers and
maintain existing customers, (x) the Company's dependence on certain key
employees and key suppliers, (xi) risks associated with potential intellectual
property claims, (xii) the impact on the Company's business and industry of
general economic conditions and regulatory developments and (xiii) risks
associated directly with the proposed business combination, including without
limitation (a) the possibility that the parties are unable to reach a definitive
agreement or close the proposed transaction, (b) the possibility that the
benefits anticipated from the transaction are not realized and (c) risks
associated with integrating two separate businesses.. Such risks and others are
and shall be more fully described in the "Risk Factors" set forth in the
Company's filings with the Securities and Exchange Commission. The Company's
actual results could differ materially from the results expressed in, or implied
by, such forward-looking statements.