|The Online Resource for Network Marketing and Direct Sales Professionals|
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Feb. 2, 2000--Network Holdings International, Inc. (OTCBB:NETWE) announced today that its subsidiary, TravelMax International, Inc., has sold substantially all of the assets of its home-based travel business, to ProTravel Solutions, Inc., a technology-based travel company headquartered in Fort Lauderdale.
Network Holdings and its subsidiaries will continue to focus on building corporate travel accounts, and marketing other consumer and business to business products, and on expanding the markets for its recently acquired subsidiary, Business-to-Business Newspapers (www.businessnewspaper.com).
Although all the terms of the transaction were not disclosed, the parties announced that as part of the purchase price, ProTravel will be paying the commissions that are owed by TravelMax to its independent travel agents and independent representatives, over the next few weeks.
The decision by Network Holdings to divest the home-based travel business followed prolonged efforts to revive a business that has struggled with many liabilities and obstacles that were not disclosed to members of current management at the time they became involved with the Company in 1997. Network Holdings and TravelMax have commenced litigation against the Company's former principals, management and others, seeking in excess of $13 million in damages, which litigation is pending in California state court. Network Holdings will continue to pursue corporate travel accounts, which it believes will yield higher profits based on volume and lower overhead and costs of sales.
ProTravel believes it has created a seamless transition process for existing TravelMax travel agents and independent representatives. Through Pro Travel's subsidiaries, Travel Awards Network, Inc., and Beach Travel Service, Inc., current TravelMax Representatives and travel agents will retain their current status and positions. Management of ProTravel has indicated that it is committed to growing the home-based travel business, including the network marketing aspects of that business, and will be committing significant resources to marketing and training. Agents who book their travel through ProTravel's internet portal, once launched, should receive higher commissions than those available through TravelMax.
Some paragraphs of this new release, particularly those describing Network Holdings' or TravelMax' strategies and business plans, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Network Holdings is working to achieve those goals, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in marketing their products and services, need for capital, competition from other companies and other factors, any of which could have an adverse effect on the business plans of the subsidiary companies of Network Holdings, its reputation in the industry or its expected financial return from operations. Factors such as these could have an adverse effect on Network Holdings' results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Network Holdings or any other person that the objectives and plans of Network Holdings and its subsidiaries will be achieved.
Network Holdings and TravelMax, Fort Lauderdale
Protravel Solutions, Fort Lauderdale Jerry Heald, 954/453-3406