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Company
Contact: Press Contact: Dian
Griesel, Ph.D. CT Holdings
Reports Fiscal 2000 Results; Parago
Announces Record Revenues for the First Quarter Ended March 31, 2000 Dallas--June 14, 2000--CT Holdings, Inc. (Nasdaq: CITN), an early stage Internet Services Company incubator, today announced its financial results for the fiscal year ended February 29, 2000. Revenues for fiscal year 2000 were $1,292,250, a decrease of 70.9% from $4,439,608 reported for the prior fiscal year. Revenues do not include any subsidiary revenue as no investments are accounted for on a consolidated basis. We reported a net loss for the fiscal year of $23,656,939, or $0.56 per share, compared to a net loss of $6,749,906 or $0.25 per share, for the prior fiscal year. Our fiscal year 2000 losses included $18,122,874 of equity in loss of unconsolidated affiliates associated with our subsidiary, Parago (formerly known as How2.com). "We are pleased with our results for fiscal 2000 and the progress we have made for our shareholders over the past year and so far this year," commented Steven B. Solomon, President and Chief Executive Officer of CT Holdings. "Our results reflect our transition to an incubator of B2B oriented Internet businesses. Our goal remains to maximize value for our shareholders, as evidenced by our progress with our existing Internet subsidiary, Parago, as well as our new investment in River Logic. We are proud that Parago has completed a successful round of fund raising with venture capital firms and is aggressively working towards a path to profitability. We believe Parago's online continuous customer interaction solutions position CT and Parago well to compete in the B2B Internet industry." Mr. Solomon continued, "CT retains its 20 million shares in Parago, which we believe will substantially increase the value of CT's assets. We will continue to look for similar attractive investment opportunities in the B2B Internet space." Recent highlights for CT Holdings and its incubator projects include the following: -- Our common stock commenced trading on the Nasdaq market in February 2000. -- Parago experienced tremendous growth in its first quarter ended March 31, 2000, and posted a record $3.5 million in revenues and sees continued strong growth in revenues. -- Our Parago subsidiary received a $36.5 million private equity financing from four investors led by TH Lee.Putnam Internet Partners (THLi). Co-investors were Dain Rauscher Wessels Investors LLC, Watershed Capital and Seaboard Ventures. The venture capital investments will be used to expand Parago's proprietary Internet-based solutions, which optimize continuous customer interaction processes for retailers, manufacturers and service organizations. -- Parago refocused its business model to an application services provider (ASP) and business process outsourcer (BPO) focused on customer relationship and promotional management solutions for retailers, manufacturers and service organizations. Parago redesigned its web site to reflect the company's business model and brand identity and to provide access for both prospects and existing clients. The site, www.parago.com, highlights Parago's capabilities to provide its clients with a personalized technology solution as well as access to and analysis of their proprietary data and reports. -- In May 2000, we finalized our investment in River Logic of approximately 19% of the outstanding shares of River Logic. In connection with the transaction, we acquired the EBSCO School Resource Network (ESRN Network) (www.esrn.com) from EBSCO Industries and contributed the network to River Logic. As a result, River Logic now owns and operates one of the largest educational networks catering to K-12. The ESRN Network provides one of the most comprehensive set of proprietary decision support tools and content available for K-12 over the Internet today. The ESRN Network supports school administrators, teachers, students and parents by providing them with a comprehensive set of tools and resources targeting their specific needs. The ESRN Network is comprised of learning applications that integrate EBSCO Industries' comprehensive database of content relating to K-12. The ESRN Network also enables online curriculum management. River Logic also plans to create and operate integrated decision support networks for other industries such as Utilities, Forest Products, Healthcare and others. These networks will be designed to leverage the flow and processing of knowledge and information to provide a decisive competitive advantage. Additionally, River Logic licenses its technologies to key industry partners. About CT Holdings CT Holdings, Inc., is an early stage Internet Services Company incubator (www.ct-holdings.com). CT Holdings' Internet subsidiary Parago, www.parago.com, provides online, continuous interactive customer care solutions. About
Parago (formerly How2.com) Parago, Inc., formerly How2.com, is a subsidiary of CT Holdings, Inc. (NASDAQ: CITN). The company was founded in January 1999 and is headquartered in Dallas with offices in Silicon Valley and Los Angeles and with approximately 340 employees. The Company has developed a continuous customer interaction model that automates promotional management and optimizes the customer care experience for its clients. Parago, an application solution provider (ASP) and Internet based business process outsourcer (BPO) provides an on-line suite of promotional offerings designed to increase sales, reduce costs, retain customers therefore increasing customer profitability. These services include on-line promotional management, on-line rebate processing, proactive e-mail, on-line surveys, product demonstrations and manuals, customer data warehousing, analysis and reporting. About River Logic River Logic (www.riverlogic.com), headquartered in Beverly, Massachusetts, creates and operates integrated networks of decision support tools, eLearning solutions, and eCommerce capabilities designed to enable decision-makers to leverage knowledge and information to gain decisive competitive advantage. By providing the knowledge databases needed to leverage it's proprietary, web-enabled, industry standard decision support tools (COR Vantage™), River Logic, offers one of the most comprehensive and technologically advanced value-added decision support networks available today. For more information on CT Holdings, its Internet subsidiaries, and its Citadel Technology line of security software products, please visit our Web site at http://www.ct-holdings.com. For information on purchasing products, contact us directly by writing or calling: CT Holdings, 3811 Turtle Creek Blvd., Suite 770, Dallas, Texas 75219; phone: 214/520.9292; fax: 214/520.9293. For media or investor relations contact: The Investor Relations Group at 212/736.2650. Forward-Looking Statements: This news release contains forward-looking statements, which involve risks and uncertainties. Accordingly, no assurances can be given that the actual events and results will not be materially different that the anticipated results described in the forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. These factors include our and our subsidiaries' success in integrating the business and operations of acquired companies and interests; no assurances of an initial public offering based on market conditions and suitable underwriters; availability of suitable incubator companies; implementation of Internet strategies; the activities of new or existing competitors; the ability to attract and retain employees and strategic partners; application of state unclaimed property or escheat laws; the availability of capital on terms acceptable to the Company; general economic conditions; and litigation costs. Investors are also directed to consider other risks and uncertainties discussed in documents we file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. |