Message #11 From:
Stock News Bot Date: June 27, 2006 05:05:00 AM
WWAG News WWA Group to Acquire Shipping Business; Enters First Phase of Diversified, Expanded Operations Plan
DUBAI, United Arab Emirates--(BUSINESS WIRE)--June 27, 2006--WWA Group, Inc. (OTCBB: WWAG), one of the world's largest auctioneers of transportation and industrial equipment, today announced that its subsidiary World Wide Auctioneers, Ltd. (WWA), has agreed to acquire a company that owns a 3,500 dead-weight-ton shipping vessel specializing in moving heavy equipment to and from the Gulf region and India.
WWA has been involved with the vessel owner, under a loan and operation agreement, since June of 2004. WWA chose to convert its loan on the vessel to ownership, and the acquisition is expected to close on June 30, 2006. Details of the transaction will be reported on Form 8K upon closing.
The vessel is a 100 meter long roll on / roll off ship with heavy lift cranes and a shallow draft, making it an ideal vessel for shipping the heavy construction equipment in the Gulf that WWA specializes in trading. The vessel is chartered for the next 42 months to a freight company that handles shipping for WWA and WWA customers. The previous loan agreement and the current acquisition are based on gross revenue from the vessel charter of approximately $1,800,000 per annum, and net profit of approximately $900,000 per annum.
WWA Group CEO Eric Montandon, stated, "This strategic acquisition provides an important first step in WWA Group's plan to diversify its business into non-auction activities in the Gulf region that align with our core competencies in heavy equipment. The fixed long term revenues and profit potential from the vessel charter, and the additional shipping service we can offer to our trading customers, makes this an ideal acquisition for WWA."
About WWA Group
WWA Group, Inc., through its wholly owned subsidiary World Wide Auctioneers, Ltd. (WAA), is one of the world's largest auctioneers of transportation and industrial equipment. WWA Group's operations are focused on high-growth, underserved regions outside of North America that are transforming into luxury tourism and international economic centers. Since its inception in 2001, WWA has auctioned over $400 million worth of vehicles and equipment from its Dubai facilities. WWA also manages unreserved auctions in Qatar, the Netherlands; Indonesia; China; and Australia through its joint venture partners. More than $200 million has been auctioned at these associated franchise facilities since WWA's inception. WWA is further distinguished as the largest seller of second hand construction equipment in the Arab Gulf Cooperation Council (GCC) countries - Saudi Arabia, Kuwait, the U.A.E., Qatar, Bahrain and Oman. Auctions are conducted on location and through the WWA BIDLive online bidding system. WWA is now beginning the execution of its expanded operations plan to leverage its dominant equipment auction and trading base into a diversified business including activities in the Gulf region that are related to heavy equipment. For more information, visit http://www.wwagroup.com. For recent news and quotes, visit Yahoo! Finance at http://finance.yahoo.com/q?s=wwag.ob. To sign up to receive email alerts with the latest news on WWA Group, go to: http://otcfn.com/wwag/email_update.html.
A number of statements contained in this press release may be considered to be forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results WWA Group may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. WWA Group encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form 10-QSB. WWA Group's public filings may be viewed at www.sec.gov.
