Genesis Technology Group Acquires Controlling Interest in Computer Hardware Wholesaler With 22 Years of International Experience "Could Achieve $10-15 Million in Sales and $0.5-1 Million in Net Income."
(PRWEB) September 23, 2004 -- Genesis Technology Group, Inc.
(OTC BB:GTEC.OB) has acquired controlling interest in ExtremA LLC, a Miami-based
computer hardware wholesaler with a 22-year history. ExtremA has succeeded in
marketing equipment between North and South America, and Genesis will source and
add new products from China to expand ExtremA's inventory and sales
opportunities.
Mr. Fernando Praca, co-founder and Chief Executive Officer
of ExtremA LLC, explained: "Since being founded in 1982, our cumulative sales
have exceeded $100 million, and we expect to reach those levels again by joining
the Genesis family.
"Genesis now owns 60% of ExtremA and founding
management retains 40%; this should construct a motivated partnership,
benefiting from the skills and experience of both companies. After a 90-day due
diligence period, we have concluded that Genesis is a priceless source of both
product line and contacts at the highest level of Chinese government and
commerce.
"Basically, there are four reasons that we believe that Genesis
will re-invigorate ExtremA and help us reach record revenues: Genesis (1) will
revamp our management with the addition of strong financial controls; (2) will
supply much-needed working capital that will enable ExtremA to meet its backlog
of orders from its customers; (3) can source cutting edge technology from China
that could give ExtremA a decided edge in the marketplace; and (4) may negotiate
price advantages for ExtremA in sourcing Chinese hardware.
"ExtremA has
built its business by connecting North and South America. Now we will benefit
from the bridge that Genesis has designed and constructed between these
economies and China. We have joined the Genesis corporate family with enthusiasm
and high expectations," concluded Mr. Praca.
Gary L. Wolfson, Genesis
CEO, commented: "We embarked on a laborious due diligence process in May. We had
secured $2 million in funding for purposes of mergers and acquisitions. This
fund is being utilized judiciously, and the ExtremA acquisition is the first one
completed. Our investment of stock and cash is about $340,000, but the future
operation will take a commitment, both financial and managerial. To date, we
have additionally extended about $350,000 for the ExtremA
operations.
"Acquiring this distribution channel, with two decades of
proven success, could become a major profit center. In the near future, we will
launch an LCD personal computer that could gain immediate acceptance and a
significant market share globally. With ambitiously sourced products and
financing, ExtremA could achieve, on an annual basis, $10-15 million in sales
and $0.5 million to $1 million in net income," forecasted Mr.
Wolfson.
About Genesis Technology Group, Inc.
Genesis Technology
Group, Inc. (also referred to as "Genesis China") is a business development firm
that fosters bilateral commerce between companies in the West with those in
China. Genesis has created successful profit centers in product development,
manufacturing, distribution, joint ventures and operational services. The
Company has fully staffed offices in the United States, Germany, and China.
Genesis has established effective working relationships with various
governmental agencies, public institutions, and private industries in China. In
addition, the company acquires and invests in innovative technology companies in
China or forms joint ventures with both American and elite Chinese companies,
focusing on emerging technology industries including, but not limited to,
computer hardware and software, nanotechnology, biotech, wireless
telecommunication, information systems, environmental protection and biomedicine
technologies.
About ExtremA, LLC
ExtremA LLC is a leading wholesale
distributor firm of computer related electronic components headquartered in
Miami, the bridge to Latin America. Since its inception in 1982, ExtremA has
successfully excelled in customer satisfaction, enabling it to cultivate
long-term relationships with an exceptional base of over 2,000 clients. This has
been possible by specializing in computers and computer parts, focusing mainly
on quality brand names of Notebooks, Digital Cameras, Central Processing Units
(CPU), Memory Modules and Peripherals strictly to the wholesale industry. A
proven track record of consistency, a worldwide reputation for delivering
superior value and best service, and an effective team of extremely experienced
employees has guaranteed a strong presence in the market. "ExtremA, We Take
Electronics to the Max" is the company motto.
Safe Harbor
Statement
Certain statements set forth in this press release constitute
"forward-looking statements." Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate, or imply future
results, performance or achievements, and may contain the words "estimate,"
"project," "intend," "forecast," "anticipate," "plan," "planning," "expect,"
"believe," "will likely," "should," "could," "would," "may" or words or
expressions of similar meaning. Such statements are not guarantees of future
performance and are subject to risks and uncertainties that could cause the
company's actual results and financial position to differ materially from those
included within the forward-looking statements. Forward-looking statements
involve risks and uncertainties, including those relating to the Company's
ability to grow its business. Actual results may differ materially from the
results predicted and reported results should not be considered as an indication
of future performance. The potential risks and uncertainties include, among
others, the Company's limited operating history, the limited financial
resources, domestic or global economic conditions -- especially those relating
to China, activities of competitors and the presence of new or additional
competition, and changes in Federal or State laws, restrictions and regulations
on doing business in a foreign country, in particular China, and conditions of
equity markets. More information about the potential factors that could affect
the Company's business and financial results is included in the Company's
filings, available via the United States Securities and Exchange Commission.
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Source : http://www.prweb.com/releases/2004/9/prweb160428.htm