YDI Wireless Announces Results of Annual Stockholders Meeting
Contact: David L. Renauld
(Vice President, Corporate Affairs)
Phone: 413-665-8551
Falls Church, Virginia — July 02, 2003: Telaxis Communications Corporation d/b/a YDI Wireless (OTCBB:TLXS), a leading developer and supplier of broadband wireless solutions, today announced that its stockholders overwhelmingly approved all proposals at its recent annual meeting of stockholders.
At the annual meeting, the stockholders approved the reverse/forward split of the company's outstanding common stock, the reincorporation of the company from Massachusetts into Delaware, and the change of the corporate name to "YDI Wireless, Inc."
The stockholders approved both a reverse/forward stock split in which a reverse 1-for-1,000 stock split would be immediately followed by a forward 250-for-1 stock split and also a reverse/forward stock split in which a reverse 1-for-100 stock split would be immediately followed by a forward 25-for-1 stock split. The stockholders gave the board of directors the discretion to choose which, if either, reverse/forward stock split to implement.
After the stockholders meeting, the board of directors decided to implement the reverse 1-for-100/forward 25-for-1 stock split. A factor in this decision was the recent increase in the market price of the company's stock, which would have significantly increased the cost of implementing a reverse 1-for-1,000 stock split. The selected reverse/forward split still accomplishes the goals of allowing small stockholders to liquidate their holdings without disproportionately high transaction costs, reducing stockholder maintenance costs for the company, and reducing the number of shares of the company's stock outstanding by still approximating a net reverse 1-for-4 split of the company's stock.
The company currently expects the reverse 1-for-100 stock split to become effective on July 9, 2003 at 6:00 p.m. Eastern time, the forward 25-for-1 stock split to become effective on July 9, 2003 at 6:01 p.m. Eastern time, and the reincorporation into Delaware and name change to "YDI Wireless, Inc." to become effective on July 9, 2003 at 7:00 p.m. Eastern time. The company is currently completing the final details to enable these actions to occur at those times.
Following these actions, the company expects that its common stock will still trade on the Over-the-Counter Bulletin Board but under a new ticker symbol commencing July 10, 2003. The company will announce the new ticker symbol prior to the effectiveness of these corporate changes.
Telaxis Communications d/b/a YDI Wireless represents the recent combination of Young Design, Inc. and Telaxis. This combination brought together Young Design's license-free products that extend the range of IEEE 802.11 wireless local area network systems, point-to-point wireless backhaul products, diverse and broad customer base, and deep market and industry experience with Telaxis' high-frequency millimeter-wave expertise and FiberLeap™ and EtherLeap™ products. More information about YDI Wireless can be obtained from the company's web sites at www.ydi.com and www.tlxs.com or by contacting the company by telephone at 413-665-8551 or by email at IR@ydi.com.
Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated in these forward-looking statements due to risks arising from and relating to the recent combination of Telaxis Communications and Young Design and our ability to achieve the contemplated benefits of that combination; the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industry and resulting impacts on our pricing, gross margins, and general financial performance; and the other factors discussed in our filings made from time to time with the Securities and Exchange Commission and in our other public statements.