Resolve Business Outsourcing Income Fund
TSX : RBO.UN

Resolve Business Outsourcing Income Fund

July 06, 2009 17:33 ET

Resolve Announces Close of Supply Chain Management Operations Sale

TORONTO, ONTARIO--(Marketwire - July 6, 2009) -

Attention Business and Financial Editors:

Resolve Corporation (TSX:RBO.UN), a Canadian leader in business process outsourcing (BPO), announced today the close of the sale of its Supply Chain Management (SCM) operations to Archway Marketing Services, a leading North American outsourced marketing services organization.

The asset sale, which was initially announced on May 27, 2009, provides net proceeds to Resolve of approximately $21 million. In this transaction Archway has acquired Resolve's SCM operation assets including client contracts, eight American locations and five Canadian locations, as well as the approximately 800 employees currently servicing the business for Resolve.

The transaction does not include Resolve's Saint John, NB, supply chain facility, which is focused on Coupon and Rebate processing, and will continue as an important component of Resolve's operation.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This press release may include certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking information may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Resolve, or industry results, to be materially different from any future results, performance, achievements or opportunities expressed or implied by such forward-looking information. This forward-looking information includes estimates, forecasts and statements as to management's and others' expectations with respect to, among other things, growth strategies and the outlook for Resolve and the business process outsourcing industry and may use words such as "may", "will", "estimate", "expect", "anticipate", "believe", "intend", "plan", "could", "continue" and other similar terminology. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this press release. Forward-looking information involves significant risks and uncertainties and should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, loss of key customer contracts or reduction of services purchased by key customers, foreign exchange rates, increases in costs to Resolve that cannot be passed on to customers, disputes with key customers, competition, the ability of Resolve to manage operations and execute growth strategies, stability of internal and government information systems and technology, technological changes, the ability to maintain software licenses, changes in privacy laws, and risks inherent in bidding on government contracts. These risk factors are discussed in greater detail under "Risks" on page 14 of Resolve's MD&A for the period ended December 31, 2006, which is available on SEDAR at www.sedar.com. Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, Resolve cannot assure that actual results will be consistent with this forward-looking information. This forward-looking information is made as of the date of this press release, and Resolve assumes no obligation to update or revise it to reflect new events or circumstances.

Contact Information

  • Investor Contact:
    Resolve Corporation
    Gerry McDonald
    Chief Financial Officer
    905-306-2196
    or
    Media Contact:
    Resolve Corporation
    John Nevins
    905-306-2642