Host America Signs Letter of Intent to Purchase Select Force, Inc. And Completes Record Second Quarter Financials

Apr 03, 2001, 01:00 ET from Host America

    HAMDEN, Conn., April 3 /PRNewswire/ -- Host America (Nasdaq: CAFE)
 announced today that it has negotiated a letter of intent to buy Select Force,
 Inc. a privately held pre-screening employment service company.  The
 transaction will be completed with restricted stock of Host America
 Corporation.  The existing management team of Select Force will remain intact
 with significant incentives to expand this Oklahoma based company.  Strong
 synergies should accrue with this acquisition as both companies are marketing
 to the same segment of the corporate market and, in many cases, the same
 personnel of these large corporations, especially in New England and New
 Jersey where Host America has a substantial presence.  The pre-employment
 industry offers high margins, low capital requirements and compatible
 marketing parallels to their existing contract food service business.  Host
 America management has high expectations for this new addition.
     Geoffrey Ramsey, Company President said, "Host America has, up to now,
 stayed predominately in food related areas, however, over the past year the
 Company found that it was receiving more requests from their customers to
 pre-screen the Company's employees, prior to their employment.  It makes good
 'business sense' to do some background investigation prior to employment.  We
 see it as a growing business with our customers and suppliers requiring this
 type of service.  We will open an office in June 2001 in Connecticut that will
 expand the Company's revenue basic and provide our food service customers with
 more security.
     According to David Murphy, Company Vice President and CFO, "The
 acquisition of Select Force will enhance Host America's income statement with
 $1.8 million dollars in revenue, approximately $125,000 dollars in pre-tax
 income, and simultaneously increase the balance sheet with net assets of
 $690,000 dollars.  The entrance into this new industry, which trades at a
 greater multiple than the food service industry, should enhance shareholder
 value going forward."
     This acquisition comes at a time when the company has just completed its
 best quarter (December 29, 2000) for revenue and income.  Please see press
 release 'Host America Corporation Announces Record 2Q/01 Profits and Revenues'
 dated 2/28/01.
     At the company, contact Philip L. Dubois, 757.229.0666 or email at
 pdubois690@aol.com
     The Company's web site is http://www.hostamericacorp.com
 
     Host America is a provider in the U.S. of outsourced food and facilities
 management to business dining, primary and secondary schools and vending.
 Food service includes "Meals on Wheels" and congregate sites, full service
 breakfast, lunch, dinner, upscale corporate catering and home meal replacement
 services.  This press release contains forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
 Securities Exchange Act of 1934.  Such forward-looking statements involve
 risks and uncertainties that may cause the actual results or objectives to be
 materially different from those expressed or implied by such forward-looking
 statements.
 
 

SOURCE Host America
    HAMDEN, Conn., April 3 /PRNewswire/ -- Host America (Nasdaq: CAFE)
 announced today that it has negotiated a letter of intent to buy Select Force,
 Inc. a privately held pre-screening employment service company.  The
 transaction will be completed with restricted stock of Host America
 Corporation.  The existing management team of Select Force will remain intact
 with significant incentives to expand this Oklahoma based company.  Strong
 synergies should accrue with this acquisition as both companies are marketing
 to the same segment of the corporate market and, in many cases, the same
 personnel of these large corporations, especially in New England and New
 Jersey where Host America has a substantial presence.  The pre-employment
 industry offers high margins, low capital requirements and compatible
 marketing parallels to their existing contract food service business.  Host
 America management has high expectations for this new addition.
     Geoffrey Ramsey, Company President said, "Host America has, up to now,
 stayed predominately in food related areas, however, over the past year the
 Company found that it was receiving more requests from their customers to
 pre-screen the Company's employees, prior to their employment.  It makes good
 'business sense' to do some background investigation prior to employment.  We
 see it as a growing business with our customers and suppliers requiring this
 type of service.  We will open an office in June 2001 in Connecticut that will
 expand the Company's revenue basic and provide our food service customers with
 more security.
     According to David Murphy, Company Vice President and CFO, "The
 acquisition of Select Force will enhance Host America's income statement with
 $1.8 million dollars in revenue, approximately $125,000 dollars in pre-tax
 income, and simultaneously increase the balance sheet with net assets of
 $690,000 dollars.  The entrance into this new industry, which trades at a
 greater multiple than the food service industry, should enhance shareholder
 value going forward."
     This acquisition comes at a time when the company has just completed its
 best quarter (December 29, 2000) for revenue and income.  Please see press
 release 'Host America Corporation Announces Record 2Q/01 Profits and Revenues'
 dated 2/28/01.
     At the company, contact Philip L. Dubois, 757.229.0666 or email at
 pdubois690@aol.com
     The Company's web site is http://www.hostamericacorp.com
 
     Host America is a provider in the U.S. of outsourced food and facilities
 management to business dining, primary and secondary schools and vending.
 Food service includes "Meals on Wheels" and congregate sites, full service
 breakfast, lunch, dinner, upscale corporate catering and home meal replacement
 services.  This press release contains forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
 Securities Exchange Act of 1934.  Such forward-looking statements involve
 risks and uncertainties that may cause the actual results or objectives to be
 materially different from those expressed or implied by such forward-looking
 statements.
 
 SOURCE  Host America