STUART, Fla., Feb. 23 /PRNewswire/ -- Regency Affiliates, Inc. (OTC Bulletin Board: RAFF), a diversified, multi-national company announced that it is well along with its due diligence after signing a Letter of Intent to acquire 55% of Knight Enterprises. Headquartered in Clearwater, Florida, founded in 1982, Knight Enterprises has been a leader in providing voice, data, video and fiber optic high speed digital access to major cable companies throughout Florida, including Time Warner and MediaOne (TCJ/AT&T). Knight Enterprises has long term contracts with its customers to provide system design and mapping, placing and splicing aerial and underground fiber optic and coaxial cable, power supply installation, system activation, MDV construction and system and infrastructure maintenance. Knight Enterprises voice and data department can deliver a completely engineered and installed communications package for their customers including LAN and WAN networks. Knight currently has annual sales of approximately $20,000,000 in the state of Florida. The terms of the acquisition call for a current value of Knight Enterprises of $15,000,000. Regency has agreed to arrange an initial $20,000,000 acquisition pool to be used to acquire other companies now performing services for cable companies under annual contracts throughout the United States. Knight believes that in the last 17 years it has developed a totally integrated, unique program that it can expand nationwide. Jeff Knight, founder of Knight Enterprises, together with the other key employees have agreed to manage the business on a long-term basis. Mr. Knight will remain president, Regency is acquiring its 55% interest for cash and convertible preferred stock in Regency Affiliates, Inc. Time Warner worked closely with Knight Enterprises to develop an operating system which includes control center operations, computer systems, recruiting, training and certification of technicians, unit pricing for sub contractors and inventory management. It is this operating system that Knight/Regency intends to utilize and adopt as it acquires a national network of companies providing digital fiber optic high-speed access services for cable companies as a one-stop solution for the needs of the telecommunication industry. Annual capital spending for the North American carrier market alone is expected to grow from 28 billion dollars in 1998 to 40 billion dollars by the year 2001. This build-out is in response to the explosive growth in demand for data transmission capacity and efficiency. In another matter, Regency Affiliates announced that it is exploring several options to monetize its 80% interest in National Resource Development Corporation that owns 75,000,000 tons of previously mined aggregate stockpiled above ground adjacent to a railroad siding in Michigan. Aggregate is used as a base for roads, rip-rap to prevent shoreline erosion, Landscape decoration and railroad ballast. NRDC has been selling the aggregate in small quantities as is, where is, at an average price of $2.50 per ton. Regency's long-term business plan calls for it to focus on consumer based technology and accessories for the home and auto market. Regency's largest shareholder with 26.1% is Glas-Aire Industries Group, LTD. (Nasdaq: GLAR). Glas-Aire's largest shareholder is Regency Affiliates, Inc. with 50.2%. They have certain common Directors. Mr. Ponsoldt is Chairman of both companies. Regency also owns 100% of Rustic Crafts International, Scranton, PA. Rustic Crafts is the largest manufacturer of decorative fireplaces in the United States. Regency also owns a 95% working interest in the Security West Partnership, which in turn owns the Security West Building leased to the United States and occupied by the United States Social Security Administration office of Disability and International Operations. The building houses approximately 4,000 employees. For further information please visit the following websites: www.regencyaffiliates.com www.rusticcrafts.com www.glasaire.com CONTACT: William R Ponsoldt, President of Regency Affiliates, Inc., 561-220-7662, or fax, 561-220-2974.
SOURCE Regency Affiliates, Inc.