Press
12/12/2006 DynTek Forms New Private Label
IT Services Business Unit
Irvine, CA – December 12, 2006 –
DynTek, Inc. (OTCBB: DYNK), a leading provider of professional
technology services, today announced it has formed a new business
unit which offers private label IT services to OEMs, ISVs, large
systems integrators, and direct marketers in both the U.S. and
Canada.
The business unit was initiated through DynTek’s acquisition
of TekConnect, Inc., which took place in October (see press release
dated October 16, 2006). A portion of the business conducted by
TekConnect included its IT services private label group, which
was already providing services to some of the world’s leading
computer manufacturers and resellers.
The new business unit will continue to operate under the name
TekConnect and Steve Struthers, DynTek’s chief technology
officer, will also serve as president of the new business unit.
The business unit will supply desktop deployment and lifecycle
management services, as well as enterprise services covering technology
areas such as Storage, Voice over IP, Security, Advanced Server
Solutions and other similar technology services.
“With DynTek’s technical resources and advantageous
relationships with large manufacturers, systems integrators, ISVs
and OEMs, we believe we can extend our private label IT services
business to provide more high-value service to a broader range
of clients,” said Struthers.
“Given our existing IT solutions business, the formation
of this new business unit is highly synergistic, and will leverage
our existing business in new economic ways,” said Casper
Zublin, Jr., DynTek’s chief executive officer. “Through
private label subcontracting agreements we are able to service
an entirely new customer base, while increasing the utilization
of our existing IT staff, which brings more value to the bottom
line.”
About TekConnect
TekConnect is a division of DynTek, Inc. that provides
private label IT services to OEMs, systems integrators and organizations
nationwide. TekConnect’s service offerings range from desktop/server
installation to services encompassing the overall desktop and
networking environment.
About DynTek
DynTek is a leading provider of professional technology
services to mid-market companies, such as state and local governments,
educational institutions and commercial entities in the largest
IT markets nationwide. The company offers technology practices
in IT security, advanced network infrastructure, voice over internet
protocol (“VOIP”), and access infrastructure. DynTek’s
multidisciplinary approach allows our clients to turn to a single
source for their most critical technology requirements. For more
information, visit www.dyntek.com.
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This press release
contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created thereby.
Investors are cautioned that certain statements in this release
are “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risks, uncertainties and other factors. Such
uncertainties and risks include, among others, success in reaching
target markets for services and products in a highly competitive
market and the ability to maintain existing and attract future
customers; the ability to finance and sustain operations, including
the ability to comply with the terms of working capital facilities
and/or other term indebtedness of the Company, and to extend such
obligations when they become due, or to replace them with alternative
financing; the ability to raise equity capital in the future;
the ability to achieve profitability despite historical losses
from operations; the ability to maintain business relationships
with IT product vendors and the ability to procure products as
necessary; the size and timing of additional significant orders
and their fulfillment; the continuing desire of and available
budgets for state and local governments to outsource to private
contractors; the ability to successfully identify and integrate
acquisitions; the retention of skilled professional staff and
certain key executives; the performance of the Company’s
government and commercial technology services; the continuation
of general economic and business conditions that are conducive
to outsourcing of IT services; the ability to maintain trading
on the NASD OTC Bulletin Board or other markets in the future;
and such other risks and uncertainties included in our Annual
Report on Form 10-K filed on October 13, 2006, our Quarterly Report
on Form 10-Q filed on November 20, 2006 and other SEC filings.
The Company has no obligation to publicly release the results
of any revisions, which may be made to any forward-looking statements
to reflect anticipated or unanticipated events or circumstances
occurring after the date of such statements.
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