SANTA ANA, Calif.--(BUSINESS WIRE)--April 29, 1998--Xtranet Systems Inc. (OTC/BB: XTRA) Wednesday announced an agreement to acquire 100 percent of the issued and outstanding shares of DataGate International, a private company incorporated in Nevis, Wis., for restricted shares of Xtranet.
The agreement is subject to Xtranet shareholder approval.
Through its Databank(TM) Network, DataGate is a provider of credit card processing services, electronic currency services, and stand alone financial processing systems, to offshore financial institutions and commercial merchants.
DataGate is the originator of MasterCoin(TM), the next generation of Internet electronic currency, utilizing a state of the art token-based system. Further information in regard to DataGate systems and services will soon be posted on Xtranet's Web site located at www.xtrasystems.com. DataGate handles the credit card processing for the Bank of Nevis, which when combined with credit card processing deals in progress, projects to $250 million annually in credit card processing business.
Xtranet intends to continue to operate DataGate as a wholly owned subsidiary out of St. Kitts, with its current management intact.
"The acquisition of DataGate and its systems technologies is an impressive addition to Xtranet's systems, and will enable Xtranet to provide additional financial processing services and systems to its customers worldwide," said Charles Anderson, chief executive officer of Xtranet.
"This will allow Xtranet to provide one stop Internet based financial processing services to its customers throughout the world."
"We are pleased to be a part of the Xtranet team," said Don Shaw, president of DataGate, "and welcome their technological and marketing skills in assisting the growth of our Internet based electronic credit card and currency processing capabilities."
Xtranet is the creator, developer and producer of online Internet based Extranet systems and service applications. The company has focused on developing and marketing its turn-key sportsbook system to legal offshore gambling companies, and to developing and producing sports pool games. With the acquisition of DataGate, the company plans to primarily focus its attention on the implementation of Xtranet's offshore financial processing capabilities. -0-
The statements discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. These include the company's historical lack of profitability, issues associated with international transactions, the need to manage its growth, the need to raise funds for operations, and other risks associated with a development stage company.
CONTACT: Xtranet Systems Inc., Santa Ana
Eric Chess Bronk, 714/430-9200
Fax: 714/430-9210
E-mail: echess@xbsinc.com
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