SND Electronics files chapter 11

SND Electronics, Inc. announces a new direction in its long and historic presence in the electronic brokerage industry. For 33 years SND has consistently committing itself to the relationships that have brought SND success for over three decades. SND is now moving forward in a new direction that they believe will preserve and build upon their hard earned reputation for integrity and excellence. In 2000 SND was acquired by ce Consumer Electronics AG, a publicly traded company based in Munich, Germany. Prior to and during the period that SND was owned by ce, SND expanded its business to include franchise distribution of computer products. This business required SND to deploy significant amounts of capital in Latin America. This became a financial problem for SND when collections from Latin America slowed significantly. By 2005, the franchise division was no longer a sustainable business and had in fact resulted in the significant accumulation of debt. Accordingly, during the summer of 2005 SND shut down its franchise division to return its focus to its core brokerage operations. Also, by the end of 2005 SND was divested from ce, allowing both companies to proceed independently. To deal with its increased debt burden, SND has sought a purchaser of its brokerage business. SND is pleased to announce today that it has entered into an agreement with a buyer established by former management to purchase the brokerage operations as a going concern, including our subsidiary, Global Technology Exchange, LLC. To facilitate the sale, SND has also today filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The proposed sale is subject to court approval. SND hope to have the purchase completed within 90 days. In the meantime, SND has obtained financing to continue its operations in the ordinary course until a sale is completed, and it fully expects to be able to continue to meet the needs of its customers and vendors.