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Semotus Solutions Files Preliminary Proxy Statement Relating to Proposed CityTalk Merger LOS GATOS, Calif.--(BUSINESS WIRE)--Semotus Solutions, Inc. (AMEX:DLK - News), an innovative leader of software solutions for enterprise mobility, today announced that it filed its preliminary proxy statement with the Securities and Exchange Commission (the "SEC") in relation to the proposed merger with CityTalk, Inc. As part of the financing exercise now underway, CityTalk has appointed Stephens Inc., a full-service investment banking and brokerage firm headquartered in Little Rock, Arkansas, to advise on the transaction. Further details of the transaction are set out in the preliminary proxy statement, which is available on the SEC's Edgar website at http://www.sec.gov/ and is subject to revision prior to the mailing of the definitive proxy statement Anthony LaPine, Chief Executive Officer of Semotus Solutions, stated: "We are firmly committed to concluding our transaction with CityTalk. We believe the strategic reasons for the deal are compelling. We appreciate the positive feedback received from Semotus' stockholders, employees and board of directors, and we are working diligently to conclude this transaction as soon as possible." Steve Keaveney, President of CityTalk, stated: "We are very excited about the future prospects for CityTalk. CityTalk delivers an excellent asset base and strong cash flow in a sector that has exciting growth potential. Aside from the initial NTCH portfolio of telecommunications assets, we have commenced negotiations with a number of other groups to explore the potential of bolt-on acquisitions. We anticipate that additional acquisitions can be actively pursued immediately following completion of the proposed transaction with Semotus. We are working diligently to put all of the closing requirements in place for the Semotus transaction and refining our plans for post-merger business expansion." About CityTalk, Inc. ("CTI") CTI is a merger vehicle founded by Richard Sullivan, former CEO and Chairman of Applied Digital Solutions and Digital Angel Corporation, and telecom business entrepreneur Steve Keaveney to acquire tower infrastructure and flat rate cellular operations in key markets in the continental US. CTI is in advanced negotiations for the acquisition of a significant tower asset, spectrum and cellular portfolio. As Chairman and CEO of Applied Digital Solutions, Sullivan executed a technology rollup involving 42 acquisitions, increasing the company's share price from $2.50 to a peak of $18 per share. During Sullivan's decade-long tenure as Chairman and CEO, Applied Digital was one of the highest volume traded stocks on NASDAQ. Sullivan launched and oversaw the strategic development of VeriChip, the world's first human implantable RFID (Radio Frequency Identification) microchip with a wide range of medical information, security, and financial verification applications. Sullivan also served as Chairman and CEO of Digital Angel Corporation (AMEX: DOC - News). In 1970, he was a founding member of the management team of Manufacturing Data Systems, Inc., which listed at $7.50 per share and was sold to Schlumberger N.V. in 1980 at $65 per share.
Semotus Solutions Media Contact Semotus and its respective directors, executive officers and other members of its management and employees may be deemed to be soliciting proxies from Semotus' shareholders in favor of the proposed transaction. Information regarding Semotus' directors and executive officers is available in Semotus' proxy statement for its 2006 annual meeting of stockholders, which was filed with the SEC on July 26, 2006. Additional information regarding the interests of such potential participants is included in the preliminary proxy statement filed with the SEC on March 19, 2007 and will be included in the definitive proxy statement, when it becomes available. This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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