724 Solutions Announces Receipt of Final Court Order Approving Arrangement
Santa Barbara, CA (August 14, 2006) - 724 Solutions Inc. (TSX: SVN; Pink Sheets: SVNX) today announced that the Ontario Superior Court of Justice has issued the final order approving 724 Solutions' plan of arrangement whereby 724 Holdings, Inc., an affiliated entity of Austin Ventures, would acquire all the outstanding common shares of 724 Solutions not owned by Austin Ventures or John J. Sims, the Company's Chief Executive Officer. In so issuing the final order, the Court determined, based upon the evidence presented, that the terms and conditions of the arrangement are fair and reasonable to the parties affected.
The arrangement is expected to be completed on August 15, 2006, subject to satisfaction of other closing conditions. Upon closing of the arrangement, holders of common shares will receive US$3.34 per common share and holders of options having an exercise price less than US$3.34 will receive a cash payment in an amount per share equal to the difference between US$3.34 and the exercise price, and all outstanding options will be cancelled.
About 724 Solutions
724 Solutions delivers intelligent any-to-any service message and traffic handling solutions built upon a common carrier-grade architecture that allows mobile network operators and virtual network operators to rapidly deploy flexible and open next generation IP-based network and data services. The company's solutions enable the Unwired Lifestyle™, 724's vision of seamless communication without barriers; a vision of how subscribers will use mobile data services to enhance and enrich their professional and private lives with services relevant to their specific needs, with user communities preserved across generations of technology and with data services as reliable and ubiquitous as voice services. 724 Solutions is a global company headquartered in Santa Barbara, California and with development centers in Canada, Switzerland and India. 724 Solutions is privately owned by Austin Ventures. For more information, visit www.724.com.
Cautionary Note Regarding Forward Looking Statements This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the Canadian provincial securities laws. These statements include the statements herein regarding: the services and products that will be offered by 724 Solutions, the benefits that businesses and individuals will obtain from these services and products, future demand for these services and products, our plans and prospects, and the future ownership of the Company. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results and events to differ materially from those projected or anticipated, including the risk and possibility that 724 Solutions will be unable to deploy its solutions and products, the risk that the demand for these solutions and products, or for 2.5G and 3G networks, will not increase as presently anticipated, the risk that general economic conditions will not improve or deteriorate and the risk that the arrangement may not close as intended. Additional information about these and other risks can be found in 724 Solutions' filings with the U.S. Securities and Exchange Commission and with the Canadian Securities Administrators, including in the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of its annual report on Form 10-K and its quarterly reports on Form 10-Q. 724 Solutions does not undertake any obligation to update this forward-looking information, except as required under applicable law.
For more information, contact:
Avichai Levy, VP Marketing Mobixell Networks
Tel: +972 544 666 785
Avichai.levy@mobixell.com
Kirsten Scott and Kim Smith, éclat Marketing
Tel: +44 (0)1276 486000
mobixell@eclat.co.uk
