9 Feb 2005 - PowerLinx Board Elects New Chairman, Engages Independent Management Consultant
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Feb. 9, 2005--PowerLinx, Inc. (OTCBB: PWLX - News) announced today that a Board of Directors meeting was held on February 4, 2005. The Board of Directors accepted the resignation of Chairman George S. Bernardich III, and elected James Williams to succeed him as Chairman of the Board. Mr. Bernardich continues to serve on the Board of Directors and its committees. Mr. Williams has served on the PowerLinx Board of Directors since December 1, 2003, and also chairs the Executive Committee for the Board. Currently the President and CEO of Gold Toe Brands, Inc., headquartered in Burlington, North Carolina, Mr. Williams also serves on the Board of Cluett American Group. He is a past Chairman of the Board of Maidenform Worldwide, and previously served on the Boards of Bibb Corporation, Esprit de Corp., and Ithaca Corporation.
Mr. Bernardich stated, "We are pleased Mr. Williams, a seasoned executive, who has been involved in the reorganization and growth of several companies, has agreed to serve as our chairman. PowerLinx, with its expanding and diverse product offerings, as well as opportunities for growth, will benefit from Mr. Williams' experience."
The Board of Directors also retained Mark Meagher, an independent management consultant, to review the Company's operational focus, allocation of financial and staffing resources, and organizational structure. The Board of Directors expects to receive his recommendations within 45-60 days.
Mr. Meagher is the former President and Chief Operating Officer of the Washington Post Company, where he also served as chief financial officer. He has been COO and CFO of FutureSource/Bridge, CFO and a Board member of On2 Technologies, and Chairman of Financial World Magazine.
The Company also announced that, pending their receipt and review of the recommendations of Mr. Meagher, they have limited the executive authority of CEO George Bernardich and that of President-COO Michael Ambler. During this time, their actions will require the additional approval of both the CFO and the Chairman of the Audit Committee of the Board.
The company explained that these actions were taken to address the Board's concern regarding expenditures and managing growth properly.
In an update to its release of January 26, 2005 regarding its contract with Universal General Corporation, the Company announced it has yet to receive payment for the units shipped to UGC in the fourth quarter of 2004. PowerLinx, Inc. has sent a demand for payment and will pursue its rights pursuant to the contract.