VERNON HILLS, Ill., Feb. 8 2002 - Centiv has completed the sale of its CalGraph Business Unit, the Company's field service and repair division, to Graphic Enterprises of Ohio, Inc., for $1,675,000.
"This sale is the final step in the divestiture strategy we began last year, and is consistent with our long term plan to transform our Company into the leading provider of Internet-based, mass-customized point-of-sale (P.O.P.) and in-store marketing solutions to brand marketers and mass merchants,'' said William Rychel, the Company's President and Chief Executive Officer. "CalGraph was the last remaining segment of our legacy business operations, and it's sale will allow us to devote 100% of our resources and energies to building the Centiv name, application platform and in-store marketing services.''
Under the terms of the sale, the Company sold substantially all of the assets and certain liabilities of its CalGraph Business Unit to Graphic Enterprises in exchange for a purchase price of $1,675,000. The purchase price consists of $1,050,000 cash plus a minimum royalty payment of $625,000 payable over 25 months beginning in May 2002. The proceeds of the sale will be used to pay down the Company's total outstanding debt. This reduction, combined with other recent reductions, has allowed the Company to reduce its debt by over 90% since January 1, 2001.
"Divesting our legacy businesses has improved the financial picture of Centiv and has allowed us to reduce our cash requirements significantly'', said Tom Mason, the Company's Chief Financial Officer. "Investors should now look at Centiv as a market leader in an emerging business within the marketing services sector. Our business model is solid due to our recurring revenue stream with patent pending technology and an expanding blue chip customer base,'' added Mr. Mason.
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