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Epixtar Holds Annual Shareholder's
Meeting
Monday, November 24, 2003 - 12:28 pm ET
Company Elects Board and Announces Agreement with the Federal
Trade Commission
MIAMI - (BUSINESS WIRE) - Nov. 24, 2003 - Epixtar Corp. (OTCBB:EPXR
- News) announced today that it held its annual meeting of
shareholders on Friday, 21 November. The meeting resulted
in the election of the Board of Directors as well as an update
on the Company's status with respect to an FTC action.
The shareholders elected the following directors: Martin
Miller, David Srour, Irving Greenman, William Rhodes, David
Berman, John W. Cooney, and Kenneth Elan. Martin Miller, the
chairman of the board, announced that Epixtar has entered
into a stipulated preliminary injunction with the Federal
Trade Commission allowing the Company to resume normal operations.
The Company has agreed to enact certain controls and disclosures,
which permit the immediate resumption of normal operations.
The Company vigorously denies all material allegations listed
in the complaint and the stipulated preliminary injunction
expressly provides that it "shall not be interpreted
to constitute an admission by the Defendants that they have
engaged in violations of any law or regulations, including
the Federal Trade Commission Act". Further, a spokesman
for the Company stated, "Neither the agreement nor the
initial action relates in any way to the national do-not-call
registry."
The injunction removes the current asset freeze and returns
operational control of the Company back to management. The
Company and the FTC have agreed to the placement of a court-appointed
interim monitor with auditing and compliance powers over the
Company's ISP activities and their future sales and marketing
practices. The agreement provides for the immediate discharge
of a temporary receiver.
The Company has agreed to establish an escrow account to
provide, among other reasons, additional reserves for refunds
and adjustments in the event that a customer "reasonably
claims to have been billed without authorizing the service
or without having been informed that they would be billed
unless they contacted the company to cancel". As of September
30, 2003, the Company's reserve balances at LEC's and billing
companies was over $6.3 million.
Martin Miller, chairman and CEO of Epixtar, said, "I
am very pleased to announce the preliminary injunction, which
allows our organization to continue operations while we work
to resolve the entire litigation as smoothly and as rapidly
as possible."
About Epixtar Corp.
Epixtar is a provider of marketing services - aggregating
contact center capacity and robust infrastructure to deliver
comprehensive, turnkey solutions. From campaign design through
ongoing management, Epixtar delivers value-driven, creative
solutions for telesales initiatives. Epixtar combines global
capacity with innovative performance-based compensation and
proven methodology to deliver highly successful marketing
campaigns. Leading companies use Epixtar's marketing expertise
and contact center capacity to acquire, support, and enhance
the customer experience, reduce costs and generate top-line
revenue. Based in Miami, Florida, Epixtar conducts operations
in India, the Philippines, and the Caribbean.
Safe Harbor Statement
This release contains statements about expected future events
and financial results that are forward looking. These statements
are based on our estimates and assumptions and are subject
to risks and uncertainties. Actual results could be affected
by a downturn in the economy, new competitive products, slower
rate of growth in member base, higher than anticipated cancellations,
unforeseen expenses, or technical failure related to self
generating web site development or inability to scale server
capacity to meet demand. Forward-looking statements include
the information concerning our possible or assumed future
results of operations. Forward-looking statements also include
those preceded or followed by the words: "anticipates,"
"believes," "estimates," "hopes"
or similar expressions. For those statements, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act
of 1995.
Contact
Epixtar Corp., Miami
Harry B. Fozzard
hfozzard@epixtar.com
Source
EPIXTAR CORP.
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