14 Apr 2005 - Powerlinx, Inc. Announces Management Changes and Restructuring

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--April 14, 2005--Powerlinx, Inc. (OTCBB: PWLX - News) today announced that George Bernardich III, Chief Executive Officer, and Michael Ambler, President and Chief Operating Officer, have resigned effective immediately and that their resignations have been accepted by the Board of Directors as of this date. Mr. Bernardich will remain as a director of the Company.
The Board also appointed as Interim President & Chief Executive Officer, Mark J. Meagher, who has been working as a full-time consultant for the Company since March 1, 2005. Mr. Meagher has agreed to serve in this capacity until the end of June 2005, by which time the Board plans to announce a new President & Chief Executive Officer. At Meaghers' recommendation, the Board made the following appointments:

Douglas Bauer, who has been serving as Chief Financial Officer since March 1, 2001, has been named Executive Vice President, Finance & Administration & Chief Financial Officer.

Michael Tomlinson, who has been serving as Director of Sales & Marketing - AC Products since February 1, 2004, has been named Executive Vice President, Sales, Research & Marketing.

James Markus, who has been serving as Director of Sales & Marketing, DC Products, has been named Vice President & General Manager, Transportation Technology Division. In this capacity, he will report to Michael Tomlinson.

Douglas Bauer and Michael Tomlinson will report to Mark Meagher.



Powerlinx is restructuring to achieve two critical goals: (1.) Improve cash flow by increasing revenue from existing products and eliminating expenses from unprofitable business initiatives and (2.) Decrease time to market for new products by focusing more resources against core power line technologies.

To attempt to improve cash flow, Powerlinx is immediately adding additional sales resources to increase revenue from existing products. To reduce expenditures, the Company, during the first quarter of 2005, discontinued its unprofitable hotel/MDU products segment and telecommunications initiatives. The business infrastructure required to support those opportunities is costly and inconsistent with the company's strategy and core business. As a result, the Company has closed its South Carolina operation (managing and selling the hotel operation) and terminated the telecommunication operation in St. Petersburg, FL. The company has terminated the employment of the employees in these business units.

The Company has refocused its resources and research efforts on core power line technologies. This will result in faster time to market for consumer and professional security products and transportation technology and rear vision products. The closing of the business units mentioned above will allow management to allocate its time on leading these efforts. The Company is also placing a higher priority on the licensing of Powerlinx technology in an attempt to generate additional revenue streams.

Powerlinx believes this refocusing of its efforts and resources on its core products will lead to significant opportunities for growth in 2005 and beyond, while improving cash flow.

To improve operational productivity, Powerlinx is in the process of outsourcing much of its manufacturing and distribution function. This will also speed time to market, provide immediate scalability, and eliminate the cash requirements necessary to build infrastructure internally.

Meagher said, "This is an exciting time for Powerlinx to marshal its resources on its most promising opportunities. We believe that the team in place can achieve significant improvements in 2005 in revenue and operating results."