the following re: Teleca, Is this the English company I was refering to in my
earlier post. Is that one of your distributors?? I guess the're out of
Geoworks Ceasing UK Operations
Monday, Febuary 3, 2003 06:23 PM ET Printer-friendly version
Teleca Offers Employment to All UK Employees
EMERYVILLE, Calif., Feb. 3 /PRNewswire-FirstCall/ -- Geoworks Corporation (OTC
Bulletin Board: GWRX, news) announced today that it is ceasing its UK
operations. In efforts to minimize its liabilities and to satisfy its
outstanding obligations, the company entered into a mutual release agreement
with Teleca Ltd. that allows Teleca to hire the company's former employees and
do business with the company's customers. In consideration of this release,
Teleca has agreed to pay the company approximately $500,000. Also, Teleca
separately agreed to assume Geoworks UK subsidiary's remaining facilities lease
obligations in exchange for use of the subsidiary's equipment.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010124/GWRXLOGO )
"We had planned to sell our UK subsidiary and its professional services
business to Teleca pursuant to our September share transfer agreement, but our
efforts to get required shareholder approval failed because we were unable to
obtain a quorum for the special shareholders meeting, despite an extensive
proxy solicitation process and an 8 to 1 favorable shareholder vote," noted Tim
Toppin, Vice President and Chief Financial Officer.
Toppin further explained, "Geoworks' weak financial position has made it
increasingly difficult to maintain a viable ongoing business in the UK. This
action is necessary in order to satisfy our legal obligations to our employees,
our creditors and our primary customer. As a result, we expect to be able to
minimize significant liabilities for legally required employee severance
payments and for our UK subsidiary's long-term facilities lease, which we
estimated to total over $700,000. Although no intellectual property or customer
contracts are being assigned, we have encouraged our customers to work with
Teleca to satisfy all of our outstanding service obligations."
Geoworks Corporation has been a provider of leading-edge software design and
engineering services to the mobile and handheld device industry. Based in
Emeryville, California, the Company has maintained a European development
center in the United Kingdom prior to this announcement. Additional information
about Geoworks can be found on the World Wide Web at http://www.geoworks.com .
Forward-looking statements in this press release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from historical results or
those anticipated or stated or implied by such forward-looking statements. For
example, the transactions described above may not minimize the company's
liabilities or satisfy its obligations to the extent expected for various
reasons. These risks and uncertainties are further described in Geoworks'
periodic filings with the Securities and Exchange Commission, including its
Proxy Statement for the Special Meeting of Stockholders on December 11, 2002,
which was adjourned until January 8, 2003 and later canceled for failure to
achieve a quorum. Geoworks is a trademark of Geoworks Corporation.
SOURCE Geoworks Corporation
CONTACT: Tim Toppin of Geoworks Corporation, +1-510-428-3900, or