Press Release Source: Universal Express, Inc.
Universal Express Signs Letter of Intent to Purchase $60 Million Pacific Jet
Tuesday May 24, 11:33 am ET
NEW YORK--(BUSINESS WIRE)--May 24, 2005--Universal Express, Inc. (OTCBB: USXP - News) today paid an initial deposit on a $2,000,000 down payment towards a $21,000,000 overall purchase of Pacific Jet and the revitalizing of Universal Jet, which was previously announced on January 11, 2005. USXP plans to combine Pacific Jet with Universal Jet and re-name the airline. The balance of the $2,000,000 deposit is scheduled to be paid by May 30, 2005 and has been committed with escrow funds with terms to be satisfied.
The newly combined entity will operate under Universal Jet's charter and licenses. Its combined revenues at full fleet are estimated at approximately $70,000,000. With acceptable refinancing, profitability is expected to be $5,900,000 and unencumbered balance sheet assets are today estimated to be in excess of $10,000,000. The synergies between these two companies make it now possible to operate profitability and reduce duplication of efforts while satisfying old debt.
" These two 12 year-old operations should be further benefited by future financial bank restructuring and consolidation of the operational overheads into one cost component which has just been offered to two major lending institutions. There has been to-date no formal banking restructure plan pending the closing," said Richard A. Altomare, Chairman & CEO of Universal Express.
The entire balance of the $19,000,000 will be paid from cash flow or stock at the discretion of Universal Express over the next 3 years.
" Obviously, these acquisitions change the dynamics and possibly balance sheet of Universal Express. It certainly augments our future opportunities and acquisitions. Both air operations will strive to be luggage-free and any future air related acquisitions and investments will be supportive of that luggage-free philosophy," concluded Mr. Altomare.
About Universal Express
Universal Express, Inc. is a 22 year old logistics and transportation conglomerate with multiple developing subsidiaries and services. For additional information please visit www.usxp.com
Safe Harbor Statement under the Private securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Source: Universal Express, Inc.
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