Sky440 Ends Negotiations With Sky Electronics

ECONOMIC WOES STALLED ACQUISITION; SKY440 TO CONTINUE PURSUIT OF ADDITIONAL PLANNED ACQUISITIONS IN COMPUTER COMPONENT SECTOR 


ORANGE, Calif., July 10  /PRNewswire-FirstCall/ -- Sky440 (Pink Sheets: SKYF) announced today it has ended its bid for Sky Electronics of Lake Forest, California, following a lengthy due diligence process.  Sky440 has formally notified Sky Electronics of their plans to abandon any further negotiations at this time.

"During our due-diligence process, we came to the conclusion that the company did not meet our required financial metrics," stated Sky440 CEO John Harris.  "It is our responsibility as the management team for Sky440 to insure that any acquisitions entertained will bring additional value to the company and its shareholders. We will continue to search for a company that ensures we do fulfill that goal."

Sky440 had hoped to complete the acquisition in April, but concerns from both parties about the eroding economy and the effect it was having on Sky Electronics precipitated several delays. The parties had hoped to resume negotiations in July and had been working on various ways to find an acceptable way to conclude the transaction. Sky440 management ultimately reached the conclusion that it was in the best interest of the company to end negotiations and focus on other, more viable acquisitions while continuing to implement its business model.

"Sky Electronics is a fine company and we are confident they will rebound along with the economy," Harris added. "We look forward to reopening negotiations with them at that time."

About Sky440

Sky440, Inc., based in Orange, California, is focusing on the electronic hardware and computer component industry. Sky440 is in the business of acquiring and operating regional North American distributors of networking hardware and other computer related components. More information about Sky440, Inc., can be found at: http://www.sky440.com/

Notes about forward-looking statements:

Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Certain Statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "may," "should" and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date when they are made.

   Contact:
   Chet Hong
   Sky440, Inc.,
   [phone]


DATASOURCE: Sky440, Inc.



CONTACT:  Chet Hong of Sky440, Inc., [phone]



Web site: http://www.sky440.com/ 

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