September 17, 2001 The shareholders of Marnetics Broadband Technologies Ltd. (www.marnetics.com) have approved the sale of the company's electrical business to Idan Millennium Investments and Assets Ltd.
The shareholders approved the sale at the Annual Shareholders Meeting held in New York City Friday.
The electrical business was the principal business of the Israel-based Stav Eletrical Systems Ltd. before it acquired Marnetics Ltd. in December 2000. As a result of this transaction, Marnetics Broadband changed its focus from electrical contracting to the development and marketing of Internet performance enhancements and solutions.
The recent downturn in the Israeli economy and political developments negatively impacted the electrical business and its anticipated prospects in the immediate future. The losses of the electrical business increased significantly in the fourth quarter of 2000, a trend which management expected to continue.
On May 11, the company published a request for proposals to solicit offers from the public for the sale of the electrical business. The sole bid came from Idan Millennium Investments and Assets Ltd., a company owned by Dov Strikovsky, the company's former chief executive officer and current major shareholder.
Marnetics Broadband Technologies Ltd., through its wholly-owned subsidiary, Marnetics Ltd., specializes in the development and marketing of Internet performance enhancement solutions. Prospera, the company's product line which is in development, is a capacity enhancement platform which will feature acceleration and differentiated services. The product is intended to better manage over-subscription situations in Internet and Intranet networks.
