The PlanetCAD shareholders also approved a reverse split of the company's stock. The shareholders left it to the discretion of the PlanetCAD Board of Directors to set the ratio of the reverse split.
"In addition to increasing the trading price of the company's stock, we expect that the reverse split will assist the combined company in meeting the American Stock Exchange's requirements for listing as a newly merged company," said Gene Fischer, Chairman of PlanetCAD.
The merger will combine PlanetCAD's widely recognized manufacturing-based technologies, including PrescientQA(TM) quality- checking, with Avatech's portfolio of software solutions, nationwide sales, marketing and services organization. Fischer commented, "The merger gives PlanetCAD access to many new customer opportunities and Avatech the benefit of our first-rate proprietary products."
After closing, the new company is expected to have a combined client base of over 20,000 worldwide customers and 185 employees throughout 21 locations. The company headquarters will be in Owings Mills, MD with a development center in Boulder, CO.
W.J. (Jim) Hindman, founder of Jiffy Lube International and Youth Services International will be the Chairman of the combined company. "There is a compelling synergy between Avatech's sales and marketing organization and the exceptional software development team at PlanetCAD. With these combined resources, the new company will provide a new level of service and expertise to our joint customer base," according to Hindman.
About PlanetCAD Inc.
PlanetCAD ( www.planetcad.com) is headquartered in Boulder, Colorado and has clients throughout North American and Europe, with a value-added reseller network supporting the European customer base. PlanetCAD provides Cycle Time Reduction(TM) solutions for the manufacturing supply chain.
Their award-winning products reduce cycles, costs and waste from design to manufacture by seamlessly integrating engineering data communication with supply chain transactions.
PlanetCAD's current products include the award-winning PrescientQA(TM) design-quality engineering software suite, which reduces costly design errors, accelerates time-to-market, and improves the product development process through advanced quality control of design engineering.
About Avatech Solutions
Avatech Solutions, Inc. ( www.avatechsolutions.com) is one of the most trusted names in design automation software, training and comprehensive technical services.
Headquartered in Owings Mills, Maryland, the company offers a complete solution to customers through its national network of 22 locations coast to coast--backed by a professional services group, training centers and a national support center.
The company is the largest Autodesk software provider in the U.S., and also offers an expanded line of products from manufacturers such as Cyco Software and Hewlett-Packard. Avatech Solutions' 18,000 clients include industry leaders from the Engineering News Record's Top 100 and Fortune 500 lists.
This press release contains forward-looking statements about the expectations, beliefs, plans, intentions and strategies relating to the merger of Avatech Solutions, Inc. and PlanetCAD, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information.
In particular, while the companies have executed a definitive agreement, there is no assurance that they will complete the transaction. If the companies do not receive the necessary government approvals or fail to satisfy conditions for closing, the transaction may terminate.
A description of risks and uncertainties attendant to PlanetCAD and its industry, and other factors that could affect PlanetCAD's financial results, are included in PlanetCAD's Securities and Exchange Commission filings, including, but not limited to, PlanetCAD's annual report on Form 10-KSB for the year ended December 31, 2001.
PlanetCAD Inc. has filed with the Securities and Exchange Commission a proxy statement/prospectus and other documents regarding the proposed business combination transaction referred to in the foregoing information. Investors and shareholders are urged to read the proxy statement/prospectus because it contains important information.
A definitive proxy statement/prospectus was sent to shareholders of PlanetCAD seeking their approval of the transaction. Investors and shareholders may obtain a free copy of the definitive proxy statement/prospectus and other documents filed by PlanetCAD Inc. with the Commission at the Commission's web site at www.sec.gov.
The definitive proxy statement/prospectus and other documents also
may be obtained for free by directing a request to Joy Godesiabois at
PlantCAD Inc. at Tel: 303/209 9242 or
Avatech Solutions, Inc., Owings Mills Melody Craigmyle, 410/581-8080 ext 311 Email Contact or PlanetCAD Inc., Boulder Joy Godesiabois, 303/209-9242 Email Contact