724 Solutions Announces Closing of Arrangement
Santa Barbara, CA (August 15, 2006) - 724 Solutions Inc. (TSX: SVN; Pink Sheets: SVNX) today announced that 724 Holdings, Inc., an affiliated entity of Austin Ventures, has acquired all of the outstanding common shares of 724 Solutions not owned by Austin Ventures or John J. Sims, the Company's Chief Executive Officer, for US$3.34 per common share. All of 724 Solutions' options having an exercise price less than US$3.34 were cancelled in exchange for a cash payment in an amount per share equal to the difference between US$3.34 and the exercise price, and all other outstanding options were cancelled. As a result of this transaction, 724 Solutions has filed a notice of termination of registration with the U.S. Securities and Exchange Commission suspending its U.S. public reporting obligations, and 724 Solutions will apply to the Canadian Securities Administrators to cease to be a reporting issuer in Canada and the Company's common shares will be delisted from the Toronto Stock Exchange.
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.
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
