SOURCE: Siena Technologies

March 28, 2007 09:17 ET

Siena Technologies to Restate First Three Quarters of 2006

Restatement to Have No Impact on Revenues, Gross Margins, or Cash

LAS VEGAS, NV -- (MARKET WIRE) -- March 28, 2007 -- Siena Technologies ("Siena") (OTCBB: SIEN) (the "Company") today announced that upon the recommendation of management to the Board of Directors, the Company will restate its unaudited financial statements for the quarterly periods ended March 31, June 30, and September 30, 2006, and therefore these financial statements should no longer be relied upon.

The restatements are the result of accounting for warrants that were issued in exchange for common stock in March of 2006, and the related changes in fair market value of the derivative liability associated with the warrants at March 31, June 30 and September 30, 2006 and the accounting for stock options issued to employees during the first three quarters of 2006.

In addition, the Company's unaudited balance sheets at June 30, 2006 and September 30, 2006 will be restated by disaggregating the presentation of "Net Liabilities of Discontinued Operations" for its subsidiaries Network Installation Corporation and Com Services, Inc. Separate captions will be provided for the current and long-term assets and liabilities of the discontinued operations in the appropriate sections of the balance sheets.

"The restatements are not expected to have any impact on revenues, gross margins, or cash as previously reported. In addition operating expenses are expected to remain unchanged except for the addition of non-cash stock option expense." commented Christopher Pizzo, Chief Financial Officer of Siena Technologies. "Today's announcement marks yet another step in our turnaround and restructuring efforts. The past year witnessed a number of sweeping changes at Siena as this new management team stabilized the business and its finances, introduced corporate disciplines and strategic planning in order to begin to execute on our vision that includes a material expansion of our addressable market."

The Company believes the net effects of these transactions are as follows:

At and for the Three Months ended March 31, 2006

Increase current liabilities by $1,180,655, decrease additional paid in capital by $1,504,994, decrease stockholders' equity related to warrants by $28,796, and decrease the Company's accumulated deficit and net loss by $280,389.

At and for the Three and Six Months ended June 30, 2006

Increase current assets and total assets by $94,236, increase current liabilities by $2,644,481, decrease additional paid in capital by $1,562,083, decrease stockholders' equity related to warrants by $28,796, and decrease the Company's accumulated deficit and net loss by $346,061 and $626,450 for the three and six months ended June 30, 2006, respectively.

At and for the Three and Nine Months ended September 30, 2006

Increase current and total assets by $87,868, increase current liabilities by $2,146,598, decrease additional paid in capital by $1,630,168, decrease stockholder' equity related to warrants by $28,796, and increase the Company's accumulated deficit and net loss by $327,253 and $299,197 for the three and nine months ended September 30, 2006, respectively.

In addition to the items mentioned above, the Company's Board of Directors is also in the process of determining if additional restatements are necessary to "below the line" items that relate to the accounting for its convertible debentures issued in 2005 and 2006, calculations of goodwill related to acquisitions in 2005 and the rescission of common stock for services rendered in 2005. While it is too early to determine if such adjustments are necessary and if so, what the dollar amount will be, the adjustments, if any, will not impact revenues, gross margins, operating expenses or cash as previously reported in 2005 and 2006.

About Siena Technologies

Siena Technologies (formerly known as Network Installation Corp.), through its wholly owned subsidiary Kelley Technologies, is a technology company which specializes in the design, development and integration of communication technology and system networks for the resort and gaming industry as well as luxury high-rise condo developments (MDUs).

Kelley Technologies has also developed a patent-pending, proprietary next generation Race & Sports Book platform designed for the gaming industry and remains committed to developing the most advanced technology solutions to meet the desires of its clients.

To find out more about Siena Technologies (OTCBB: SIEN) or Kelley Technologies, please visit www.kelleytechnologies.com and www.enhanceht.com. The Company's public financial information and filings can be viewed at www.sec.gov.

Forward-Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

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