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Thursday
November 08, 3:11 pm Eastern Time
Company Press Release
North
American DataCom Acknowledges Equity Investment Support
IUKA,
Miss.--(BUSINESS WIRE)--Nov. 08, 2001--Jack Freeman, president
of North American DataCom, Inc. (OTC BB: NADA - news), the
broadband data storage company, today acknowledged the local
continuing capital support that has been of great assistance
to the Company. Since June 2000, employee investment in the
Company has exceeded $3 million. Employees and local investors
have personally made equity investments to support the Company's
projects, and to provide for operational expenses. North American
DataCom (NAD) has primarily used these investments for working
capital needs. These capital sources have indicated that they
intend to continue their support. "Although the capital
markets have been very weak over the past year, I see no better
investment opportunity at this time than in our Company. I
continue to believe strongly in the Company's information
technology business model and in the opportunities available
in the Southeast US and throughout the world,'' said Mr. Freeman.
"The
need for the Company services and products has not diminished
during the past 12 months,'' said Robert R. Crawford, NAD's
chief executive officer. "I intend to continue to invest
in the Company. The opportunity to expand the Company exists
now as never before. Management and I are determined to position
the Company to service the increasing worldwide market demand
for information technology.'' To that end, the Company continues
to develop its state-of-the-art broadband communications network
with its strategic partner Sun America Communications Corporation.
The initial fiber optic segment of the network is still planned
to begin operation in late 2002. In the interim, the Company
is rapidly developing the business applications using its
existing broadband network. The Company has formed Global
PTX, LLC, a joint venture with Infusion Software Group, LLC,
to develop international private trade exchanges and related
application services. The Company also continues to expand
its paging services and internet service businesses. In addition,
the Company is exploring and investing in opportunities to
bring its engineering and network-building resources to new
strategic global markets.
The
Company has developed plans to raise additional capital to
reach its investment goals. These plans include the financing
agreement previously announced for a minimum of $25 Million
in equity financing, with an option for an additional $25
Million, with IFG Private Equity, LLC, an Atlanta-based institutional
investor. "While the capital market has been weak in
the past year,'' said Mr. Crawford, "the Company's shareholders
have personally acted to sustain the Company's capital needs.
NAD has overcome, and it plans to continue to overcome, the
many challenges presented by adverse market conditions. Opportunity
abounds, and I encourage our shareholders and potential investors
to see and understand how North American DataCom is positioned
to serve the growing information technology market.''
Mr.
Crawford alone has invested over $2.4 million. In return,
he has received $2.1 Million worth of convertible Series B
preferred shares, subject to resale restriction. The conversion
rights on the preferred stock vary from $3 per share to $0.16
per share based on the common stock market price at the end
of each quarter in which the investments were made. Last Spring,
Mr. Crawford exchanged his accrued 2000-2001 corporate salary
for 400,000 shares of NAD common stock, which has been registered
under SEC Form S-8. Other employees and local shareholders
have invested over $600,000 during this period.
Safe
Harbor Statement
Statements
in this release express management's beliefs and expectations
regarding future performance. These statements are forward-looking
and involve risk and uncertainties. These risks include, but
not limited to, the ability to negotiate venture agreements,
properly identify acquisition partners, manage and integrate
acquired businesses, react to quarterly fluctuation in results,
raise working capital and secure other financing, respond
to competition and other rapidly expanding technology, deal
with market and stock price fluctuation, and other risks.
These risks are and will be detailed, from time to time, in
North American DataCom, Inc. Securities and Exchange Commission
filings. Actual results may differ materially from management's
expectations.
North
American DataCom's principal executive offices are located
at 751 County Road 989, Building 1000, Iuka, MS 38852. For
further information, contact Investor Relations, 662-424-5030,
or by e-mail at investorrelations@nadata.com.
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