[January 28, 2005]

MTM Technologies to Acquire Info Systems

BY JOHANNE TORRES

Stamford, CT-based MTM Technologies, Inc., a provider of IT networking and data center services, including storage, security, collaboration, messaging, and voice over Internet protocol (VoIP) products, today announced that it entered into an agreement to acquire Info Systems, Inc. The company expects to close this transaction by mid February.

Info Systems is an Avaya Gold Partner, a Cisco Silver Partner, a Microsoft Gold Partner, and a Citrix Platinum Partner, and provides VoIP, security, storage, connectivity, and server architecture solutions. Info Systems also provides remote network monitoring, management and support services through its Network Operations Center.

"The acquisition of Info Systems will significantly expand our national footprint by extending our business into the Mid-Atlantic Region and deepens our technical capabilities by adding Avaya Gold certification and by expanding our Network Operations Center capabilities on the East Coast," said Francis J. Alfano, MTM Technologies' CEO.

By acquiring Wilmington, DE-based Info Systems MTM Technologies will extend its presence to the Mid-Atlantic Region adding five offices located in Wilmington, Dover, Philadelphia, Baltimore and York, PA. Upon the completion of the acquisition, Mark Stellini, Info System's president and his senior management team are expected to join MTM Technologies and lead its Mid-Atlantic Region operations. Info Systems will be adding approximately 240 employees of which 170 are consultants and technical staff. The combined MTM Technologies and Info Systems workforce will be approximately 590.

"For over 20 years Info Systems has been committed to delivering technology solutions that solve business problems," said Mark Stellini, President of Info Systems. "In continuing to expand our capabilities we have found an excellent partner in MTM Technologies, and are extremely excited with the opportunity to become an integral part of a premier national provider of IT services. The acquisition by MTM Technologies enhances the solutions we can bring to our clients and affords our employees the opportunity to expand their career opportunities as part of a rapidly growing company."

MTM Technologies considered paying $8.3 million in cash plus shares of MTM Technologies common stock with a value of $3.2 million, such shares to be valued at the greater of the weighted average trading price of such common stock for the 10 business days ending immediately prior to the closing of the transaction and $2.75. In addition, there will be up to an additional $1.7 million in consideration payable in certain circumstances. MTM Technologies expects to finance the cash portion of the consideration through the issuance of additional equity and debt securities, although no binding agreement for such issuance has been entered into at this time.

MTM Technologies, Inc.
www.mtm.com

Info Systems, Inc.
www.infosysinc.com