Newsroom
Stratos Commences Breach of Contract Action Against Exigen Group
Bethesda, MD (April 20, 2006) - Stratos Global Corp. (TSX: SGB), the leading global provider of advanced mobile and fixed-site remote communications solutions, announced today that it has commenced an action in the Supreme Court of Newfoundland and Labrador, Canada, against Exigen (Canada), Inc., and Exigen Inc. (the Exigen Group) for breach of contract and negligence.
The Exigen Group is a provider of business process solutions and technology through pre-built content designed to optimize processes within service industry operations. Stratos entered into a contract on March 18, 2004, pursuant to which the Exigen Group was to customize and integrate its proprietary CRM software for use within Stratos' mobile satellite services business. Stratos has experienced significant cost overruns and delays as a result of the Exigen Group?s inability to perform under the contract and failure to deliver a reliable and working system. As a result, Stratos has filed a claim for US$7.0 million in damages, plus costs and interest.
The failure by the Exigen Group to perform their contractual obligations is not expected to have a significant ongoing impact on Stratos' customers, business processes or the timing of the Xantic integration. As a result of this contract action, Stratos will recognize in its first quarter 2006 results a non-cash, pre-tax write-off of capital assets of US$4.4 million, representing costs paid to Exigen and other outside contractors, as well as internal costs incurred under this project.
About Stratos
Stratos Global Corporation (www.stratosglobal.com) is a publicly traded company (TSX: SGB) and the leading global provider of a wide range of advanced mobile and fixed-site remote communications solutions for users operating beyond the reach of traditional networks. With its owned-and-operated infrastructure and extensive portfolio of industry-leading satellite and microwave technologies (including Inmarsat, Iridium, Globalstar, MSAT, VSAT, and others), Stratos serves the voice and high-speed data connectivity requirements of a diverse array of markets, including government, military, energy, industrial, maritime, aeronautical, enterprise, media and recreational users throughout the world.
Caution Concerning Forward-Looking Statements
Documents related to this release contain statements and information about potential future circumstances and developments. Such statements and information are qualified by the inherent risks and uncertainties surrounding future expectations generally and may differ materially from Stratos Global Corporation's actual future results. For additional information with respect to these risks and uncertainties, reference should be made to the Corporation's continuous disclosure materials filed with the Canadian Securities Administrators. Stratos Global Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events, or otherwise.
For additional information :
Carla Riggs
Director, Corporate Communications
+1 709 748 4857
carla.riggs@stratosglobal.com