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Compliance Systems Corporation Provides Business Update and Details on Proposed Transaction With Execuserve Corp.NEW YORK, Nov 19, 2009 (GlobeNewswire via COMTEX) -- Compliance Systems Corporation (OTCBB:COPI) today released an update on the Company's previously announced intent to acquire Execuserve Corp. On November 12, 2009, Compliance Systems announced that it had entered into a non-binding Memorandum of Understanding to acquire Execuserve. Compliance Systems Corporation believes that upon acquisition of Execuserve, it will be able to leverage its connections within the telemarketing industry to market and distribute Execuserve's Hire-Intelligence(TM) and Hire-Choice(TM) software program to more than 56,900 call centers nationwide, which historically have some of the highest rates of employee turnover, averaging more than 300% annually. USA call centers employ approximately 5,219,000 workers nationwide, almost 4% of the U.S. workforce. The software's dynamic assessments of prospective job seekers entering the telemarketing industry will assist call center operators in identifying which candidates have the potential to achieve higher rates of success, thus reducing new hire costs and increasing call center performance for the software user. "The follow up on last week's meetings and executed MOU are being promptly engaged," stated Dean Garfinkel, CEO of Compliance Systems Corporation. "I am optimistic about a timely closing, and I am even happier to include in my update that we have confirmed Execuserve's software capabilities to sustain, and improve, call center employment efficiencies without additional development of the Execuserve software offerings. We believe the market opportunity for the Hire-Intelligence(TM) and Hire-Choice(TM) software suite is significant when considering that on average each of the 50,000 plus call centers typically hire 3 employees just to maintain one agent position." Upon completion of the proposed acquisition of Execuserve Corp., Compliance Systems believes that it should be able to offer a complete solution ready for marketing to an existing call center customer base accustomed with the Company's patented TeleBlock "Do-Not-Call Blocking" system, currently sold by telephone carriers worldwide such as AT&T, Verizon Business and Qwest Communications. While the TeleBlock system assists teleservice professionals to maintain compliance in the highly regulated Do-Not-Call environment by automatically screening and blocking outbound calls against USA and Canadian Do-Not-Call lists, Execuserve's software suite will offer the potential for improved employee performance and reduced cost. "When bundled together, following the Execuserve acquisition, Compliance Systems believes that it will be able to offer a fully integrated vertical suite of software to call centers that address their most pressing needs, qualified employees and compliance with national Do-Not-Call regulations," concluded Mr. Garfinkel. Compliance Systems also announced that it has delayed the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 and has filed a notification of late filing on form 12b-5 with this Securities and Exchange Commission. The Company anticipates filing its Quarterly Report on Form 10-Q no later than November 23, 2009. Call Compliance and Execuserve are currently negotiating a definitive, ongoing acquisition agreement. No assurance can be given that the parties will enter into such an acquisition agreement, that this transaction will be consummated or that consummation of the transaction will result in any benefit to Call Compliance and its shareholders. The transaction, as contemplated, will involve certain cash payments, financial commitments, and restructuring of certain debt of the parties. No assurance can be given that Compliance Systems can obtain the necessary financing on terms favorable to the Company, if at all, or that any debt can be restructured on terms that do not adversely impact either of the entities involved. Statistical information contained in this release was obtained from reports published by American Teleservices Association, whose website is www.ataconnect.org. About Compliance Systems Corporation Headquartered in Glen Cove, NY, Compliance Systems Corporation (www.callcompliance.com) is a developer of technology-based compliance solutions for the teleservices industry. Its prime focus is ensuring 100% compliance with government "Do-Not-Call" laws through its flagship patented product, TeleBlock(R), as well as its associated suite of telecommunication products. The company sells its services across a wide-range of industries and sectors. Additional information on the company and/or its suite of products can be obtained at www.callcompliance.com or by calling (888) 674-6774. Call Compliance Inc. is a wholly owned subsidiary of Compliance Systems Corporation (OTCBB:COPI). About Execuserve Execuserve Corp. is a Virginia corporation with offices located at 929 Williams Wharf Road, Mathews, VA 23109. Execuserve was founded in 1987 as a search/services firm dedicated to helping clients increase revenue and decrease attrition by making smart hiring decisions. From the start, Execuserve differentiated itself from other search firms by using a detailed process model, along with profiling and reporting tools to evaluate candidates and employees from a behavioral perspective. It is this depth of experience that provided the basis for Hire-Intelligence, a revolutionary online behavioral assessment tool. "Safe Harbor" Statement Under The Private Securities Litigation Reform Act Of 1995 Certain written and oral statements made by us may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Forward-looking statements are identified by such words and phrases as "we expect," "expected to," "estimates," "estimated," "current outlook," "we look forward to," "would equate to," "projects," "projections," "projected to be," "anticipates," "anticipated," "we believe," "could be," and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release. This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: Compliance Systems Corporation CONTACT: Public Communications Co. Michael Selsman 310-553-5732 www.publiccommunications.biz |