MOUNTLAKE TERRACE, Wash., July 11 /PRNewswire-FirstCall/ -- Cognigen Networks, Inc. (BULLETIN BOARD: CGNW) , the Seattle area based Internet- enabled marketer of communications services and certificated reseller, and Anza Borrego Partners, Inc. (ABP) of San Diego today announced the formation of Cognigen Business Systems, Inc. (CBSi) for the purpose of providing broadband voice, data, video and environmental management services to the Quick Service Retail (QSR) industry. ABP has been designing and developing an integrated suite of services to support managerial communication and control for QSR franchises in a project known as Retail Technologies Co-Op (RTC).
Cognigen and ABP executed a formal agreement whereby each company owns 50% of CBSi with Cognigen having the option to purchase ABP's 50% share by September 7, 2006, in a stock for stock exchange. Full details of the agreement are provided in the Current Report 8-K filed by Cognigen with the SEC. Carl L. Silva, Jr., managing director of ABP, was appointed president and CEO of CBSi.
Mr. Silva has been directing the development, testing and deployment of RTC services to QSR franchises. Prior to organizing ABP in 2003, Mr. Silva was senior vice president of SAIC's Converged Network Professional Services for over eight years. Before that he worked for five years with Telcordia Technologies' IGCS business unit where he was responsible for initiating the development of Voice over IP Softswitch technology. He implemented the first commercially available Voice over IP system while at Telcordia Technologies (formerly Bell communications Research or Bellcore). Mr. Silva has over 20 years of experience in pioneering new technology solutions in telecommunication and high tech industries while holding a variety of positions in business development, sales, marketing, and software and systems engineering. He has extensive international business experience. Mr. Silva is a graduate of the College of Engineering and Physical Sciences of the University of New Hampshire with a B.S. in Mathematics and Computer Science. He has also attended executive education courses on product management, marketing and finance at Stanford University and the University of Pennsylvania's Wharton School of Commerce.
Gary L. Cook, Cognigen's CFO and acting CEO, will serve as treasurer and CFO of CBSi. Mr. Cook commented on the formation of CBSi, "This is without question the most significant positive development for Cognigen that has occurred during the time of my association with this company. Carl Silva has developed a solid, highly competent enterprise model and has translated that model into an emerging and promising business opportunity. CBSi starts off with ongoing operations aimed at introducing integrated systems utilizing broadband transport for quick service restaurants throughout the country. For the past 18 months Cognigen agents have increased revenue growth in dedicated service to small and medium sized businesses at an average monthly growth rate of 8.9%. Our expansion into the CBSi /RTC program will build upon that growth and provide even greater opportunities for our agents. Cognigen is extremely fortunate and pleased to have partnered with ABP and for the distinguished leadership and vision Carl Silva brings to this venture."
Responding on behalf of CBSi, its president and CEO, Carl L. Silva, Jr., said, "Some months ago, I was asked by corporate executives of Subway Restaurants to study the needs of and recommend solutions for providing VoIP communication services for their franchised restaurants throughout the United States and Canada. As a result of this work and in close cooperation with members of the association of Subway franchisees, we developed the Retail Technologies Co-Op project which is the core of CBSi. In partnership with a group of strategic partners, we designed an integrated system of essential services for QSRs. We are presently completing installation of basic broadband based service bundles in 25 Subway restaurants in San Diego in our pilot program. Upon completion of a 45 day testing period, we will move forward with installations in 125 Subway stores in San Diego County with near term expansion to additional Subway franchises in California, Florida, the Mid-Atlantic states, and Canada. Our primary objective is to provide RTC services to 22,000 Subway franchised restaurants in the United States within the next thirty months. Beyond that we foresee expansion into other QSR chains and organizations, as well as, other affiliated vertical market opportunities. According to U.S. Bureau of the Census data over 1.5 million commercial retail establishments comprise market opportunities for CBSi's bundled services."
Mr. Silva continued, "The convergence of Cognigen's strong agent distribution channel and industry experience with the RTC package of broadband service is a very promising combination. I am confident we have in abundance the technological and marketing expertise along with highly competent personnel to realize the remarkable potential of our new venture."
Since becoming a public company six years ago, Cognigen has served approximately 860,000 customers worldwide who have purchased telecommunication and personal technology services and products from the Company's websites. Each of the approximately 134,000 persons, who currently are registered as Cognigen agents, has a website that is replicated from the main http://www.ld.net/ site.
About Cognigen
Cognigen Networks, Inc., based in metropolitan Seattle, Washington, offers a wide range of telecommunication services and related technology products via its Web site, http://.www.cognigen.net/ . Cognigen's robust marketing engine harnesses distribution channels featuring a prominent Internet presence, a network of independent agents and several affiliate groups, each having their own customized Web site. Cognigen's agent initiated sales as well as those generated directly off its main website are fulfilled via proprietary software utilizing the Internet. The Company sells its own proprietary services under the Cogni label as a certificated reseller and carrier, and resells the services of industry leaders such as AccuLinq, Inphonic Cellular, ShopForT1, Convergia, IBN Tel, Pioneer Telephone, OPEX, PowerNet Global, UniTel and Trinsic / Z-Tel. Cognigen is authorized to operate as an interstate and international carrier under Section 214 of the rules of the Federal Communications Commission and is regulated by some forty four state public utility commissions as a reseller of interstate and intrastate long distance telecommunications services. Since September of 1999, Cognigen has sold, on behalf of its vendors and for its own account, services and products to approximately 860,000 customers worldwide.
The information herein contains forward-looking statements, including, without limitation, statements relating to Cognigen Networks, Inc. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect the Company's business, financial condition and results of operations, including without limitation, the Company's possible inability to become certified as a reseller in all jurisdictions in which it applies, the possibility that the Company's proprietary customer base will not grow as the Company expects, the Company's inability to obtain additional financing, the Company's possible lack of producing agent growth, the Company's possible lack of revenue growth, the Company's possible inability to add new products and services that generate increased sales, the Company's possible lack of cash flows, the Company's possible loss of key personnel, the possibility of telecommunications rate changes and technological changes and the possibility of increased competition. Many of these risks are beyond the Company's control. The Company is not entitled to rely on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, or Section 2lE of the Securities Exchange Act of 1934, as amended, when making forward-looking statements.
Cognigen Networks, Inc.
CONTACT: Gary L. Cook, voice, +1-425-329-2315, or fax, +1-425-329-2301, or Gary@ld.net, for Cognigen Networks, Inc.
Web site: http://www.cognigen.com/
About Aaron Reed Aaron Reed is an assistant professor specializing in software architecture and design and .NET development at Neumont University in Salt Lake City, UT. He has worked professionally in the industry for over 12 years as a lead architect/designer, development manager, and VP of development. When he isn't spending time reading up on the latest in software development, Aaron loves spending time with his beautiful wife and three children.
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