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Authentidate Completes Sale
of its Document Management and Systems Integration Businesses
BERKELEY HEIGHTS,
N.J.
June 7, 2007
Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide
provider of software and web-based services that enable enterprises and
individuals to exchange information securely and conduct trusted business
transactions, today announced that it has completed the previously announced
sale of its Document Management (DocStarTM) and Systems Integration (DJS)
businesses to a group headed by members of the businesses' senior management
team.
Under the terms of the definitive asset purchase agreement,
Authentidate will receive approximately $7.3 million for the businesses and
related assets, which include cash of $750,000. Astria Solutions Group, LLC,
the newly formed entity organized by the buying group, paid to Authentidate
approximately $3.1 million in cash at closing, issued a $2 million seven-year
note to Authentidate and assumed approximately $1.9 million in liabilities
related to the acquired businesses. The balance of $300,000 will be paid based
on the collection of accounts receivable. As part of the sale, the buyer
entered into a seven-year lease for a portion of the building located in Schenectady, NY
where the acquired businesses are based, and received a six-month exclusive
option from Authentidate to purchase the land and building for approximately
$2.4 million.
Authentidate's Board of Directors received a favorable
fairness opinion regarding the sale from Agile Equity LLC, a leading investment
banking firm providing a wide range of services including mergers and
acquisitions, financing, financial opinions and advisory services.
"We wish the new owners of DocStar and DJS much success
with their continued operations," stated Suren
Pai, Chief Executive Officer of Authentidate. "The sale
of these businesses brings clarity to our strategy and allows us to focus on
executing our vision to grow our business and enhance shareholder value. We are
excited about the new course we have set for Authentidate and pleased with our
recent progress, including the successful rollout of InscrybeTM Healthcare in
the U.S.
over the past several months, and the continuing growth of our eBilling and other
security applications overseas. The upcoming commercial release of TrueBlueTM
expands our portfolio of offerings, and adds further momentum to our new
business direction."
About Authentidate
Holding Corp.
Authentidate Holding Corp. is a worldwide provider of
software and web- based services that enable enterprises and individuals to
exchange information securely and conduct trusted business transactions. Our
offerings are targeted at enterprises and office professionals, and incorporate
security technologies such as electronic signing, identity management, and
content authentication to electronically facilitate secure and trusted
transactions. In the United
States, we also offer our proprietary and
patent pending content authentication technology as a web-based service in the
form of the United States Postal Service®
Electronic Postmark®
.
The company operates its business in the United States and Germany, which includes
Authentidate, Inc., and Authentidate International AG. For more information,
visit the company's website at http://www.authentidate.com.
This press release contains forward-looking statements
within the meaning of section 27A of the Securities Act of 1933 and section 21E
of the Securities Act of 1934. When used in this release, the words
"believe," "anticipate," "think,"
"intend," "plan," "will be," "expect,"
and similar expressions identify such forward-looking statements. Such
statements regarding future events and/or the future financial performance of
the Company are subject to certain risks and uncertainties, which could cause
actual events or the actual future results of the Company to differ materially
from any forward-looking statement. Such risks and uncertainties include, among
other things, the availability of any needed financing, the Company's ability
to implement its business plan for various applications of its technologies,
related decisions by the USPS, the impact of competition, the management of
growth, and the other risks and uncertainties that may be detailed from time to
time in the Company's reports filed with the Securities and Exchange
Commission. In light of the significant risks and uncertainties inherent in the
forward-looking statements included herein, the inclusion of such statements
should not be regarded as a representation by the Company or any other person
that the objectives and plans of the Company will be achieved.
Authentidate, Inscrybe, and TrueBlue are trademarks of
Authentidate Holding Corp. in the United States and/or other
countries. All other trade names are the property of their respective owners.
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Press Release 06-07-07 
