The Company expects to realize approximately $21.9 million in net proceeds, of which $2.5 will be reserved for taxes and contractual reserves, $3.4 million will be used to repay long-term debt, and approximately $16.0 million will be used for general corporate purposes.
netGuru Chairman and Chief Executive Amrit Das commented: "After transaction costs, taxes, repayments of debt, and establishing contractual reserves, we anticipate adding approximately $16.0 million to the Company's cash position.
"netGuru's board of directors and management are evaluating alternatives for using these funds as well as strategies for the Company," Das continued. "We are discussing the possibilities and expect to announce what netGuru's board of directors recommends as the best direction for shareholders and the Company."
netGuru is an engineering services company offering engineering business process outsourcing (EBPO) services for the architecture, engineering, and construction (AEC) industry; document/project collaboration software/solutions for A/E/C companies, enterprise software providers, software integrators, and other businesses engaged in document/project-centric operations; and technical services and support. netGuru offices are located in the United States, Europe, and India. For more information go to www.netguru.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
With the exception of historical or factual information, the matters discussed in this press release, including performance under terms of sale, net proceeds, alternatives for the use of proceeds and the Company's strategies, are forward-looking statements that involve risks and uncertainties. Actual future results may differ. Factors that could cause or contribute to such differences in results include, but are not limited to, ability of the parties to perform under their agreements, business and financial conditions, demand for the Company's products and services, competition, and other factors discussed in the "Risk Factors" Section of netGuru's Form 10-KSB for the fiscal year ended March 31, 2005, and other filings made with the U.S. Securities and Exchange Commission.
netGuru, Inc. Bruce Nelson, 714-974-2500 x-5215 or Silverman Heller Associates Dan Matsui/Gene Heller, 310-208-2550