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Preferred Voice to Delay New Fundraising Plans to Achieve Positive Cash Flow by
Reducing Expenditures
DALLAS, TX - (June 5, 2002) - Preferred Voice, Inc. (OTC BB: PFVI), the leading
network-based speech application provider, said today it has come to the
conclusion that raising additional capital at current market prices would
unnecessarily dilute shareholders.
"At a time when our revenues from
voice dialing are expected to double over the next 45 days, and triple over the
next 90 days, we think the best course of action is to reduce expenditures until
these revenues are realized," said Bill Schereck, President of Preferred Voice.
Schereck said the company has taken a number of steps to reduce
expenditures, including a temporary reduction of full time employees from 31 to
19, and a reduction in salaries for all employees, including management by 15
percent. Schereck emphasized that even if external conditions do not improve
over the next few months, these steps will enable Preferred Voice to achieve
breakeven with existing resources; to meet current deployment schedules; and to
begin the launch of second generation products and services.
"If, over
the next few months, market conditions improve," continued Schereck, "This will
provide a better window for the company to obtain the expansion capital it needs
to take full advantage of its technology platform and its strategic position as
the leading provider of voice dialing and other enhanced services to US
telecommunication carriers."
"In addition, we are continuing to explore
strategic opportunities with the assistance of Digital Coast Partners," he said.
"Management is committed to preserve 100 percent of the upside for
Preferred Voice shareholders," said Schereck. "The steps we are announcing
today, though difficult, will enable us to meet this commitment."
About
Preferred Voice
Based in Dallas, TX, Preferred Voice, Inc. is a leading
voice recognition technology company. Through its Carrier Services Group,
Preferred Voice markets its products and services to wireless, ILEC and CLEC
companies across the United States. These enhanced voice services include Safety
Talk voice activated dialing, voicemail navigation, VAC voice accessed content,
voice calling cards, BusinessConnect voice directory assistance and EmmaPR voice
telephone receptionist. Preferred Voice's Network Services Group provides
carrier connectivity, call management, provisioning and service delivery
solutions for carriers, voice portal providers, wireless application providers
and other enhanced features providers. Preferred Voice has signed agreements
with 45 telecom carriers. For more information please visit
www.preferredvoice.com.
SOURCE: Preferred Voice, Inc.
This press
release contains forward-looking statements. Since all statements about
Preferred Voice's plans, estimates and expectations are based on current
projections that involve risks and uncertainties, and are subject to change at
any time, the company's actual results may differ materially from expected
results. Readers should consider these risks and uncertainties, which are
discussed in documents filed by Preferred Voice, Inc., with the Securities and
Exchange Commission. These documents identify important factors that could cause
the actual results to differ materially from those contained in the
forward-looking statements. Preferred Voice, Inc. expressly disclaims any
obligation to update any forward-looking statements.
Contact:
Joelle Mertzel, (310) 586-7161
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