K. Andrew White

September 18, 2009 09:00 ET

Route1 Concerned Shareholder's Nominees Are Focused on Value Creation

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2009) - The Concerned Shareholders of Route1 Inc. ("Route1" or the "Company") today reminded their fellow investors that their opportunity to create positive change at the Company's upcoming Annual Shareholder Meeting expires on Monday, September 21 at 2:00 p.m. Eastern Standard Time.

The Concerned Shareholders asks their fellow shareholders to consider the following three points as they make their decision:

- The Concerned Shareholder's Nominees have a plan, the current Board does not. Tony P. Busseri, Peter Chodos, Michael F. Doolan, Michael D. Harris and K. Andrew White (the "Concerned Shareholder's Nominees") outlined their business strategy for Route1 during a presentation to RiskMetrics earlier this week. The plan includes the following action items and objective:

-- First 90 Days: Execution of the Qwest contract before the end of the current calendar year including immediately securing the required CAD$2.5 to $3 million of short-term debt to fund the contract's working capital requirements;

-- Calendar Year 2010: Three pronged approach: (1) build strength in the executive management team, particularly in day-to-day operations and sales, (2) improve communications internally and externally, and (3) focus sales efforts on leveraging off of signed contracts with current large clients, and penetrating the European market through Route1's German partner G&D.

-- Objective: Deliver positive cash flow and EPS in calendar year 2010, and increase the user base of Route1's TruOFFICE™ subscription-based service and MobiKEY® devices to in excess of 100,000 users per month.

The RiskMetrics presentation is available at www.sedar.com.

- RiskMetrics Group recommends that Route1 Shareholders vote FOR the election of the Concerned Shareholder's Nominees. The nation's leading proxy voting and corporate governance advisory firm published a report on September 15, 2009 advising their clients that board change at Route1 is warranted, and that RiskMetrics believes that the Concerned Shareholder's Nominees will be more likely to increase shareholder value than the current Board.

RiskMetrics decision is based on the following: (1) K. Andrew White appears to be the best suited candidate currently available to lead the Company while minimizing disruption and maintaining momentum, (2) the Concerned Shareholder's Nominees provide continuity, (3) the management team is expected to stay the same, and (4) the key action steps identified in the Concerned Shareholder's Nominees strategic plan appear reasonable and targeted at enhancing shareholder value.

- This Vote is about creating Shareholder value. Replacing the current Board is essential to strengthening board guidance and support for Route1, and capitalizing upon rapid revenue growth and expansion of its customer base through major new government and institutional adoption of its patent pending security and identity management network solutions technology.

By voting for the Concerned Shareholder's Nominees and reinstating K. Andrew White as President and Chief Executive Officer of the Company, Route1's best interests will be served. The Concerned Shareholder's Nominees have only one objective - to improve value for all Route1 shareholders.

Vote Now

Time is short. Route1 shareholders should use the GREEN proxy to vote for the election of a new Board of Directors that can create shareholder value. Discard the Yellow Proxies. In order to be voted at the Annual Shareholder Meeting, proxies must be received by no later than 2 pm (Toronto time) on September 21, 2009. Remember, your vote is completely private. For more information, call the Route1 Concerned Shareholders at (416) 962-3300.

Forward Looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Route1. These statements are based on suppositions and uncertainties as well as on the best possible evaluation of future events. As a result, readers are advised that actual results may differ from expected results.

Contact Information

  • Route1 Concerned Shareholders
    K. Andrew White
    (647) 990-8921
    or
    Spinnaker Capital Markets Inc.
    Ali Mahdavi
    (416) 962-3300 ext. 225
    am@spinnakercmi.com