SOURCE: Distribution Management Services, Inc.

December 11, 2007 13:54 ET

Distribution Management Services, Inc. ("DMGS") Timely Addresses the Immediate Concerns of Its Stockholders

NORTH MIAMI, FL--(Marketwire - December 11, 2007) - In response to its stockholders' concerns, during calendar 2007, the Board of Directors of Distribution Management Services, Inc. (PINKSHEETS: DMGS) has been making every effort to bring further value to the company and its stockholders by negotiating tangible transactions using calculated, contemporary strategies adapted from traditional business practices and methods. Moreover, each of DMGS' year-recent transactions represents the culmination of DMGS' overall efforts evidenced by its utilization of broader, long-term strategies that, altogether, should represent a higher yield to the company with minimal risks. DMGS has been successful in resolving the majority of its long-standing litigation in its favor, as has been evidenced by its recent disclosures to the SEC.

As a part of DMGS' overall strategy to improve the company's cash positions and stockholder value, DMGS negotiated a transaction with a significant local company that boasts $95 million in income producing real estate assets. That transaction requires the purchaser to buy 174 building lots from DMGS for $8.7 million, in cash. When DMGS' Board of Directors entered into the sale transaction, it was to provide immediate benefits that could be realized by its stockholders as the result of the closing of that transaction. To that extent, in October 2007, the company's board of directors declared a special dividend of $0.10 per share to the holders of the company's common stock, which was to be paid on January 4, 2008 to stockholders of record as at December 18, 2007 from the gross proceeds of the real estate transaction. In that regard, in order to remain accurate in its representations to the SEC and its stockholders, DMGS announces that the contractual purchaser of the company's property requested a 90-day extension to fulfill its obligation to DMGS. Reluctantly, DMGS' senior executive management granted the extension to the purchaser due to a number of factors, which includes considerations related to customary delays associated with the (U.S.) holiday season and due to a number of other factors that might conflict with the funded escrow and of the purchaser's overall concerns related to "rushing" the closing of the transaction.

DMGS' Board of Directors is extremely disappointed in the purchaser for the delay of the closing of the real estate transaction beyond November 20, 2007; however, regardless of the disappointment, DMGS must remain consistent with its long-term objectives of closing the real estate transaction (for a substantial profit), updating all SEC filings, and continuing with its current expansion plan.

Of course, when the real estate transaction closes, DMGS' Board of Directors will pay the special dividend from the proceeds of the real estate closing to its stockholders of record immediately prior to the closing, pursuant to the applicability of a record date, as such is enumerated in the Florida Business Corporation Act. DMGS asks that you note: the holders of any new stock that was or will be directly or indirectly issued to any officers, directors, advisors, affiliates, or insiders of DMGS from the announcement date of the special dividend through the actual record date, will be reinvested in the company by the holders thereof.

While DMGS is unable to solicit or recommend a strategy to any investor buying its stock, the company requests that its stockholders express continued confidence in the company to permit it to carry-out its established plan of operations and to avoid any reactionary, short-lived plan to profit from the company's interim delays, so that DMGS can timely achieve its objectives to the benefit of all stockholders.

Leo Greenfield, DMGS' President, invites DMGS' stockholders and other interested parties to contact him at the company's executive offices with their questions.

DMGS may have used subjective or "forward-looking" statements in this release. To that extent, DMGS is seeking "safe harbor" for these statements, as that term is defined in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934.

Contact Information

  • For further information call:
    Leo Greenfield
    Distribution Management Services, Inc.
    Telephone 305.893-9270
    Fax 305.893-6696
    11601 Biscayne Boulevard
    Suite 201
    North Miami, FL 33181