Message #1 From:
NewsBot Date: June 30, 2005 07:45:00 AM
ADNW News Auto Data Network Provides a Progress Update on Its Spin-off Strategy
NEW YORK & TUNBRIDGE WELLS, England--(BUSINESS WIRE)--June 30, 2005--Auto Data Network (OTC Pink Sheets: ADNW), a provider of software and real-time data services to the worldwide automotive industry provided an update on its spin-off strategy.
With regards to Aftersoft, the division is on track to complete its transition into an independent organization, which will have its own public listing. For the 12 month period ending February 28, 2005, this division had actual revenues of $21 million and net income of $3.4 million ($32 million and $4.1 million on a pro-forma basis, respectively).
Upon the completion of the spin-off, Aftersoft will be the second largest software supplier in its marketplace. The largest software supplier in this marketplace, Activant Solutions Holdings Inc., filed a registration statement for a $200 million initial public offering on June 2, 2005.
ADN's Dealer Management Software division, which is in the process of becoming a publicly traded company on the London Stock Exchange (AIM), recorded revenues of $48 million with net income of $4.4 million for the 12 months ended February 28, 2005. Its spin-off into an independent, publicly listed entity is expected to be completed by the end of next month.
When the respective public listings are completed, the Company intends to distribute the new shares of the publicly traded entities to shareholders through a stock dividend, which will be done on a pro-rata basis.
About Auto Data Network
Auto Data Network is a group of established companies which provide software products and services to the automotive industry. The company's main customer base is the auto dealership marketplace. This marketplace consists of approximately 78,000 dealers in North America and 92,000 dealers in Europe. The company estimates that this represents a $15 billion market for Software and Services specifically for auto dealerships. The company supplies a suite of software solutions and services that enable dealerships to run their businesses more efficiently whilst achieving considerable cost savings. The majority of the company's current solutions are focused on serving the aftermarket and finance areas of dealerships. These areas are of particular importance as the aftermarket business is responsible for 48% of a dealerships profit from 12% of their overall revenue. The second most profitable area is vehicle finance and insurance this area contributes 35% of profits from 2% of revenues.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).
