Minacs Worldwide proposes share consolidation

Information Circular Mailed Today



Apr 20, 2001, 01:00 ET from Minacs Worldwide Inc.

    MARKHAM, ON, April 20 /PRNewswire/ - Minacs Worldwide Inc. (TSE: MXW)
 announces, subject to shareholder and TSE approvals, a consolidation of the
 current common shares outstanding on a one for eight basis. Following
 consolidation, the Company's issued and outstanding common shares will be
 reduced from approximately 149.2 million to approximately 18.6 million.
     "This proposal is another important component of our strategy to enhance
 shareholder value. We have had significant levels of interest from
 institutional investors who have been precluded from purchasing shares in the
 past. This was because the large number of shares outstanding contributes to
 the share price range being below levels required by their investment
 policies. The consolidation is intended to increase the universe of potential
 investors in the Company's shares," said Elaine Minacs, President and CEO of
 Minacs Worldwide. "The Company's strong operating performance, combined with
 this interest by new institutional investors, suggests the time is right to
 move forward on this important strategic initiative."
     The current share structure of Minacs Worldwide is an outcome of the
 reverse takeover of Phonettix Intelecom Ltd. by The Minacs Group Inc. in 1999,
 which resulted in approximately 100 million new common shares being issued. In
 addition, 23 million common shares were issued in connection with the special
 warrants offering last year. The Board and management believe that the 18.6
 million shares that would result from the proposed consolidation are
 appropriate for a company of this size and market capitalization. In the year
 ending December 31, 2000, Minacs Worldwide reported $95 million in revenue,
 $2.3 million in net income and had a market capitalization of approximately
 $75 million.
     The share consolidation proposal is subject to shareholder and regulatory
 approvals. A special meeting for shareholders of Minacs Worldwide will be held
 in conjunction with the Annual Meeting at 10:30 AM on Wednesday May 16, 2001
 at the TSE Conference Centre at 130 King Street West in Toronto. The proposed
 consolidation is subject to final approval by the Company's Board of
 Directors. The Management Information Circular outlining the reasons for the
 share consolidation, along with the 2000 Annual Report, was mailed to
 shareholders April 20, 2001.
     Separately, the Minacs Board of Directors has approved, subject to
 regulatory approval, an extension to the expiry date of the purchase warrants.
 There are currently 9.8 million warrants outstanding on a pre-consolidation
 (1.2 million post consolidation). The expiry date will be extended for one
 year, to July 6, 2003, during which time the exercise price will be $1.10 per
 share (on a pre-consolidation basis). The initial exercise price of $0.90 per
 share (pre-consolidation) remains in place until July 6, 2002.
 
     Minacs Worldwide
 
     Minacs Worldwide is a leading provider of customer relationship
 management (CRM) services. The Company designs, delivers, and manages
 customized, multimedia contact center solutions that help its clients
 communicate more effectively with their customers. This business is
 experiencing rapid growth as companies increase their competitive advantage
 through an increased focus on customer care and service. Minacs Worldwide
 provides sophisticated large-scale CRM solutions to clients in North America,
 Europe, Latin America, Asia and the Pacific Rim. For more information please
 visit the company's web site at www.minacs.com.
 
     Forward Looking Statements
 
     Some of the above statements are forward-looking and may involve risks
     and uncertainties, including, without limitation, changes in market
     and competition, potential downturns in economic conditions, clients'
     budgets and plans, and risks associated with completing and integrating
     acquisitions. Additional information on these and other potential
     factors that could affect the Company's financial results are included
     in documents filed with the Ontario Securities Commission and SEDAR.
 
 

SOURCE Minacs Worldwide Inc.
    MARKHAM, ON, April 20 /PRNewswire/ - Minacs Worldwide Inc. (TSE: MXW)
 announces, subject to shareholder and TSE approvals, a consolidation of the
 current common shares outstanding on a one for eight basis. Following
 consolidation, the Company's issued and outstanding common shares will be
 reduced from approximately 149.2 million to approximately 18.6 million.
     "This proposal is another important component of our strategy to enhance
 shareholder value. We have had significant levels of interest from
 institutional investors who have been precluded from purchasing shares in the
 past. This was because the large number of shares outstanding contributes to
 the share price range being below levels required by their investment
 policies. The consolidation is intended to increase the universe of potential
 investors in the Company's shares," said Elaine Minacs, President and CEO of
 Minacs Worldwide. "The Company's strong operating performance, combined with
 this interest by new institutional investors, suggests the time is right to
 move forward on this important strategic initiative."
     The current share structure of Minacs Worldwide is an outcome of the
 reverse takeover of Phonettix Intelecom Ltd. by The Minacs Group Inc. in 1999,
 which resulted in approximately 100 million new common shares being issued. In
 addition, 23 million common shares were issued in connection with the special
 warrants offering last year. The Board and management believe that the 18.6
 million shares that would result from the proposed consolidation are
 appropriate for a company of this size and market capitalization. In the year
 ending December 31, 2000, Minacs Worldwide reported $95 million in revenue,
 $2.3 million in net income and had a market capitalization of approximately
 $75 million.
     The share consolidation proposal is subject to shareholder and regulatory
 approvals. A special meeting for shareholders of Minacs Worldwide will be held
 in conjunction with the Annual Meeting at 10:30 AM on Wednesday May 16, 2001
 at the TSE Conference Centre at 130 King Street West in Toronto. The proposed
 consolidation is subject to final approval by the Company's Board of
 Directors. The Management Information Circular outlining the reasons for the
 share consolidation, along with the 2000 Annual Report, was mailed to
 shareholders April 20, 2001.
     Separately, the Minacs Board of Directors has approved, subject to
 regulatory approval, an extension to the expiry date of the purchase warrants.
 There are currently 9.8 million warrants outstanding on a pre-consolidation
 (1.2 million post consolidation). The expiry date will be extended for one
 year, to July 6, 2003, during which time the exercise price will be $1.10 per
 share (on a pre-consolidation basis). The initial exercise price of $0.90 per
 share (pre-consolidation) remains in place until July 6, 2002.
 
     Minacs Worldwide
 
     Minacs Worldwide is a leading provider of customer relationship
 management (CRM) services. The Company designs, delivers, and manages
 customized, multimedia contact center solutions that help its clients
 communicate more effectively with their customers. This business is
 experiencing rapid growth as companies increase their competitive advantage
 through an increased focus on customer care and service. Minacs Worldwide
 provides sophisticated large-scale CRM solutions to clients in North America,
 Europe, Latin America, Asia and the Pacific Rim. For more information please
 visit the company's web site at www.minacs.com.
 
     Forward Looking Statements
 
     Some of the above statements are forward-looking and may involve risks
     and uncertainties, including, without limitation, changes in market
     and competition, potential downturns in economic conditions, clients'
     budgets and plans, and risks associated with completing and integrating
     acquisitions. Additional information on these and other potential
     factors that could affect the Company's financial results are included
     in documents filed with the Ontario Securities Commission and SEDAR.
 
 SOURCE Minacs Worldwide Inc.