MALTON, England, May 5, 2008 (PRIME NEWSWIRE) -- Propalms, Inc. (Pink Sheets:PRPM) is pleased to announce that the Company has completed the acquisition of vFortress, a leading security solution company. The acquisition gives Propalms the rights to all vFortress customers and property, including the worldwide IP rights and source code of a Virtual Private Network (VPN) solution. The acquisition was an all-cash transaction, which means there will be no dilution to the stock. Propalms expects Company sales to double within the next 24 months as a result of the acquisition and will rebrand the VPN product within two to three weeks.
Propalms will rename the product to "Propalms VPN." Propalms VPN will be sold as an individual application for enterprises that already have server-based computing, which opens up new multimillion dollar opportunities for Propalms. According to ZDNet Research, the IP VPN market is expected to grow to over $5.8 Billion in 2009. Propalms VPN will also provide secure remote access for small to large enterprises without any restrictions on the amount of users logging in remotely, which will enable companies to run more efficiently and cut down on their operational costs.
"As we continue our worldwide expansion of Propalms product line, we expect to acquire more companies like vFortress as we strive to introduce new products to the market. Propalms VPN will not only further expand our customer base, but will open up additional revenue streams for Propalms to reflect a larger market share and will enable Propalms to compete with VMware, Microsoft and Citrix," stated Owen Dukes, CEO of Propalms, Inc.
Propalms held a nationwide teleconference on May 1, 2008. Some key points Company executives addressed were: that in the last two years, in North America alone, 40% of Propalms TSE customers were former Citrix users; a beta version of TSE 6.0 will be released next week and available to download on Propalms' Web site; and, as soon as the Company releases TSE 6.0, Propalms will become a Microsoft Gold Certified Partner. During the teleconference, Robert Zysblat, the President of Propalms, discussed that during the fiscal year 2008, Propalms increased its revenues by approximately 50%, while significantly decreasing its net loss, versus the prior fiscal year. Owen Dukes, CEO of Propalms, also detailed the status of Propalms' pilot project with Toyota Group and explained that even if Toyota converts only 50-60% of their total desktops to thin clients, it would equate to an order of approximately $10 million for Propalms.
About Propalms, Inc.:
Propalms TSE, the complete Server-Based Management solution that extends Microsoft Terminal Services 2000/2003, offers features such as Application Publishing, Seamless Windows, Resource-based Load balancing, and Web-based management consoles.
Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.
For more information, please visit: http://www.propalms.com