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eLandia, Through Its DESCA Subsidiary, to Acquire Netxar Technologies

^{Published on 2008-11-25 08:12:30 - Market Wire}
 

CORAL GABLES, Fla.--([ BUSINESS WIRE ])--eLandia (OTCBB:ELAN), a leading technology enabler of emerging markets, today announced that its operating company DESCA, a leading technology integration services company, has signed a non-binding letter of intent to acquire Netxar Technologies, a technology consulting and integration company specializing in the design, implementation and management of business critical network and information technology solutions. The completion of the acquisition by DESCA of Netxar is subject to the satisfactory completion of due diligence, the execution of the definitive acquisition agreements and the satisfaction of all closing conditions. Specific financial terms of the transaction were not disclosed and eLandia does not expect to close before the end of 2008.

Netxar's twelve month trailing revenues were approximately US$12MM. The transaction will also provide DESCA the ability to further consolidate its business operations in the technology services area with a comprehensive suite of solutions in the Caribbean region, including Puerto Rico and the Dominican Republic. Netxar operations, including its product portfolio, services and existing offices will be integrated into DESCA.

"The combined experience and resources of DESCA and Netxar will provide the company much greater coverage throughout the Caribbean marketplace by using this acquisition as a platform for growth," said Jorge Alvarado, the Chief Executive Officer and President of DESCA. "Together, we will serve the Latin American and Caribbean region, with more than 800 employees in 20 offices throughout 16 countries."

Upon closing of the acquisition, Frank Santiago, Netxar's present Chief Executive Officer, will lead DESCA's Caribbean expansion initiative.

"I am pleased we will be joining DESCA and the eLandia group of companies," said Santiago. "The combined company will have the capability of providing a more comprehensive suite of value added technology services to our customers as well as the ability to more effectively meet the growing demands in the Caribbean market. Our resources, solutions and technologies will raise our ability to service our current clients and increase our opportunities to reach new customers."

Netxar provides advanced enterprise networking solutions, information security solutions, systems integration and management, customized training, managed services and a comprehensive list of enabling solutions to small, medium and large enterprise companies. Founded in 2000 Netxar has long-standing client relationships and a team of experts certified with Cisco®, Microsoft®, Nortel® and other key partners.

"We expect the addition of Netxar into our DESCA operating company will move us closer to fulfilling our vision of being the leading technology enabler," said Pete R. Pizarro, Chairman and Chief Executive Officer of eLandia. "With this acquisition, eLandia continues making progress as part of its regional consolidation of leading technology enablers around our three strategic initiatives; Technology Integration Services, Educational Services and Infrastructure Services, which will accommodate the next generation of business technology."

About DESCA

DESCA is a leading provider of network infrastructure and system integration products and services in Latin America and the Caribbean. The company delivers world-class business information and telecommunications solutions to customers in Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Trinidad & Tobago, and Venezuela. The company is majority-owned by eLandia International Inc. and is headquartered in Miami, Florida. For more information, please visit [ www.desca.com ].

About eLandia

With over 3,000 business customers and a presence in 17 countries, eLandia (OTC BB: ELAN.OB), and its family of companies deliver an array of information and communications technology (ICT) services to emerging markets experiencing rapid development, predominantly focusing on Latin America, the Caribbean and the South Pacific. eLandia assists its customers to implement world-class integrated infrastructure solutions and cutting-edge networking technologies, and to build highly-qualified local workforces to enable their businesses to transform and integrate into the global economy. For more information, please visit [ www.elandiagroup.com ].

This press release and other statements to be made by the Company contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, including but not limited to statements relating to projections and estimates of earnings, revenues, cost-savings, expenses, or other financial items; statements of management's plans, strategies, and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved; statements concerning proposed new products and services; and statements regarding future economic, industry, or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "project," and conditional verbs such as "may," "could," and "would," and other similar expressions. Such forward-looking statements reflect management's current expectations, beliefs, estimates, and projections regarding the Company, its industry and future events, and are based upon certain assumptions made by management. These forward-looking statements are not guarantees of future performance and necessarily are subject to risks, uncertainties, and other factors (many of which are outside the control of the Company) that could cause actual results to differ materially from those anticipated.