Netergy Networks, Inc. Announces Completion of Restructuring Of Canadian Operations

Apr 02, 2001, 01:00 ET from Netergy Networks, Inc.

    SANTA CLARA, Calif., April 2 /PRNewswire/ -- Netergy Networks, Inc.
 (Nasdaq: NTRG) today announced that it has completed the restructuring of its
 Canadian operations.  The Company closed its office in Montreal, Quebec which
 represented the operations of the former U|Force, Inc., which Netergy Networks
 acquired in June 2000.  The Company will no longer have operations in Canada.
     As a result of the restructuring and facility closure, Netergy has
 transferred certain research and development efforts and engineering and sales
 operations to Santa Clara, California and Sophia-Antipolis, France.  After the
 restructuring, Netergy Networks, Inc. has approximately 160 employees,
 including those employees of its wholly-owned subsidiaries, Netergy
 Microelectronics, Inc. and Centile, Inc.
     Charges associated with this restructuring, including those for asset
 impairment, facility closures and severance payments, will be recorded in the
 Company's current fiscal quarter ending March 31, 2001.  The Company has not
 yet calculated the exact amount of such charges or of the cost savings arising
 from the restructuring.  The Company has assigned, and been relieved of
 ongoing obligations under, its nine-year lease for its former office space in
 Montreal.
 
     About Netergy Networks, Inc.
     Netergy Networks, Inc. offers Voice-over-IP (VoIP) service creation
 platforms, hosted iPBX solutions (through its subsidiary Centile, Inc.), voice
 and video semiconductors and related software (through its subsidiary Netergy
 Microelectronics, Inc.).  For more information, visit Netergy Networks' web
 site at www.netergynet.com.
 
     Netergy Networks, Inc. -- Forward Looking Statements
     This press release contains forward-looking statements based on current
 information available to Netergy Networks as of the date hereof.  These
 statements are based on management's current expectations and may ultimately
 prove to be incorrect or false.  Factors which could cause future results to
 differ materially from the results discussed, implied or forecasted in the
 forward-looking statements include potential difficulties in reducing costs to
 the extent anticipated, problems in retaining employees in a competitive
 employment environment, the possibility that the market for the products the
 Company develops could develop more slowly than anticipated or might not
 develop at all, and the possibility that current and anticipated customers for
 the Company's products and services may select vendors other than Netergy
 Networks.  Further information on these and other factors that could affect
 the actual results of Netergy Networks are included in the Company's Report on
 Form 10-Q for the fiscal quarter ended December 31, 2000, which is on file
 with the Securities and Exchange Commission.  The Company assumes no
 obligation to revise or update any forward-looking statements contained in
 this press release.
 
 

SOURCE Netergy Networks, Inc.
    SANTA CLARA, Calif., April 2 /PRNewswire/ -- Netergy Networks, Inc.
 (Nasdaq: NTRG) today announced that it has completed the restructuring of its
 Canadian operations.  The Company closed its office in Montreal, Quebec which
 represented the operations of the former U|Force, Inc., which Netergy Networks
 acquired in June 2000.  The Company will no longer have operations in Canada.
     As a result of the restructuring and facility closure, Netergy has
 transferred certain research and development efforts and engineering and sales
 operations to Santa Clara, California and Sophia-Antipolis, France.  After the
 restructuring, Netergy Networks, Inc. has approximately 160 employees,
 including those employees of its wholly-owned subsidiaries, Netergy
 Microelectronics, Inc. and Centile, Inc.
     Charges associated with this restructuring, including those for asset
 impairment, facility closures and severance payments, will be recorded in the
 Company's current fiscal quarter ending March 31, 2001.  The Company has not
 yet calculated the exact amount of such charges or of the cost savings arising
 from the restructuring.  The Company has assigned, and been relieved of
 ongoing obligations under, its nine-year lease for its former office space in
 Montreal.
 
     About Netergy Networks, Inc.
     Netergy Networks, Inc. offers Voice-over-IP (VoIP) service creation
 platforms, hosted iPBX solutions (through its subsidiary Centile, Inc.), voice
 and video semiconductors and related software (through its subsidiary Netergy
 Microelectronics, Inc.).  For more information, visit Netergy Networks' web
 site at www.netergynet.com.
 
     Netergy Networks, Inc. -- Forward Looking Statements
     This press release contains forward-looking statements based on current
 information available to Netergy Networks as of the date hereof.  These
 statements are based on management's current expectations and may ultimately
 prove to be incorrect or false.  Factors which could cause future results to
 differ materially from the results discussed, implied or forecasted in the
 forward-looking statements include potential difficulties in reducing costs to
 the extent anticipated, problems in retaining employees in a competitive
 employment environment, the possibility that the market for the products the
 Company develops could develop more slowly than anticipated or might not
 develop at all, and the possibility that current and anticipated customers for
 the Company's products and services may select vendors other than Netergy
 Networks.  Further information on these and other factors that could affect
 the actual results of Netergy Networks are included in the Company's Report on
 Form 10-Q for the fiscal quarter ended December 31, 2000, which is on file
 with the Securities and Exchange Commission.  The Company assumes no
 obligation to revise or update any forward-looking statements contained in
 this press release.
 
 SOURCE  Netergy Networks, Inc.