Ray, I don't really follow XLA, but here some leads.
BIZWIRE
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08-11-2000 01:50:28 PM ON24 Audio Investor Alert: Xcelera CEO Discusses Tax
Issues, Mirror Image and Insider Selling
Business Editors --(BUSINESS WIRE)--Aug. 11, 2000-- Xcelera has been in the news lately on a variety of topics. Alex Vik, CEO of Xcelera spoke to ON24 about his company's current state of affairs. For the complete streaming audio story users should access on24.com 
GRAND CAYMAN, British West Indies--(BUSINESS WIRE)--August 11,
2000--The Board of Directors of Xcelera.com Inc., (AMEX: XLA), a
European Internet technology company, today announced that the Company
intends to declare a special dividend to shareholders to address
income taxes, if any, that may be due by a U.S. shareholder as a
result of Xcelera's potential classification as a foreign personal
holding company for the taxable year ending December 31, 2000.
Xcelera intends to declare the dividend, if necessary, to
shareholders of record on December 31, 2000 or on such other date
deemed the record date for classification as a foreign personal
holding company. If a special dividend is declared, it will represent
approximately 40% of Xcelera's undistributed foreign personal holding
company income for the year 2000. The highest marginal U.S. federal
income tax rate is 40% for individuals.
Alexander M. Vik, CEO of Xcelera, said, "This action is consistent
with our continuous efforts to protect and enhance shareholder value.
If the Company is determined to be a foreign personal holding company,
the tax treatment of an investment in Xcelera will be similar to that
of a typical U.S. fund. Xcelera greatly appreciates the continued
support of its shareholders and will continue to look out for their
best interests."
About Xcelera
Xcelera.com Inc., is a European Internet technology company
focusing on operating, developing and financing Internet technology
companies whose technologies, products or services can be enhanced by
or complement Xcelera's core competencies in content management,
content distribution, caching, storage and streaming. The company is
actively expanding its portfolio of Internet companies. The company
has a controlling interest in Mirror Image Internet, an Internet
infrastructure company that speeds up the Web; and investments in
deo.com, an Internet music portal; MNW Records, Scandinavia's leading
record company that plans to produce music over the Internet;
e-game.com, a leading developer and distributor of adgames;
CoreChange, a leading Web-based infrastructure technology company
focused on the B2B market; Wideyes, an international Internet
recruitment company focused on the European marketplace; Active ISP, a
leading European shared Web hosting company; Dynamic Imaging, a
leading image processing technology company focused on the global B2B
image processing market; HelpinHand, a leading Web-based technology
company focused on the fast-growing global wireless Internet market;
Suntail.com AS, an Internet infrastructure software development
company; and MarineProvider, a marine service Internet company focused
on the maritime industry. io Publishing, a leading web- based
technology company serving the global professional Internet publishing
market. For more information, visit us on the Web at www.xcelera.com.
This press release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding management's beliefs about the
Company's future prospects. All forward-looking statements are
management's present expectations of future events and are subject to
a number of risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements, including, but
not limiting to, those risks and uncertainties disclosed in the
Company's Annual Report on Form 20-F for the fiscal year ended January
31, 2000. The Company expressly disclaims any obligation to update or
alter any forward-looking statements.
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Hope it helps.
Jack |
