SOURCE: FTS Group, Inc.

January 09, 2008 09:24 ET

FTS Group Signs Letter of Intent to Spin-Off FTS Wireless as a New Public Company

TAMPA, FL--(Marketwire - January 9, 2008) - FTS Group, Inc. (OTCBB: FLIP), a publicly traded acquisition and development Company, today announced that it has signed a letter of intent to spin-off its wholly owned subsidiary FTS Wireless, Inc. as a new a publicly traded Company. FTS Group will have 30 days to complete its due diligence of the target shell Company. The letter of intent calls for FTS Group stockholders to own a significant majority of the new shell.

FTS Group CEO Scott Gallagher commented, "We've been working on attempting to spin-off our wireless subsidiary for quite some time. We now think we have a solid comfort level with a particular public shell Company to proceed. We'll be conducting our final due diligence over the next 30 days and if satisfactory would close the spin-off shortly thereafter." Gallagher continued, " As I've stated in the past getting this deal done should unlock the growth potential of FTS Wireless by allowing the Company to use its own currency for acquisitions and financing without diluting FTS Group shares at all. At the same time we'll create a new asset class for our stockholders. Our plans will be to set a dividend date immediately after closing and then dividend some of the shares out to our stockholders. We'll probably dividend the shares out in stages to allow the new Company to develop its own market."

Investors are invited to visit the FTS Group IR Hub at where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request to be added to the investor e-mail list in order to receive all future press releases and updates in real time.

About FTS Group, Inc.

FTS Group, Inc. (OTCBB: FLIP) is a publicly traded acquisition and development Company. The Company generated profitable sales of $6.6 million during 2006, an increase of 409% from the previous year. FTS is focused on acquiring, developing and investing in cash flow positive businesses and viable business ventures primarily those in the wireless and Internet space. The Company generates revenue through its three wholly owned subsidiaries: See World Satellites, Inc., FTS Wireless, Inc. and Elysium Internet, Inc. For additional information about FTS Group, Inc. or any of its wholly owned subsidiaries please review the Company's quarterly, annual and other filings with the Securities and Exchange Commission at or contact the Company at the e-mail or phone number below.

Forward-Looking Statements

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, general economic conditions affecting consumer spending, including uncertainties relating to global political conditions. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K and 10-K/A as filed with the Securities and Exchange Commission. Readers are cautioned not to place reliance on these forward-looking statements, which speak only as of the date hereof.

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