OTCBB NewsWire On Universal Express

Universal Express Addresses Collection of $389 Million Judgment

New York -- (OTCBB NEWSWIRE) -- July 30, 2001, In a vague press release issued this morning, Universal Express, Inc.'s (USXP: .042) General Counsel, Chris Gunderson, in response to numerous enquiries, clarifies the previous announcement regarding the $389 million judgment awarded to the company, "to the effect that the Company expects to collect a substantial part of the judgment within a relatively short period of time."

"Our trial counsel, Arthur W. Tifford, of Miami, has a great deal of experience against these defendants and has collected monies against them in other cases. Mr. Tifford expects to recover on behalf of the Company a substantial part of the judgment with a relatively short period of time, stated Mr. Gunderson.

Mr. Gunderson further stated, " The jury, after hearing testimony during the day, deliberated for an hour or so and brought in the record verdict based on the extensive frauds of the defendants toward the Company. They were instructed by a very experienced judge, Circuit Judge Eleonor Schockett, they asked questions of the witnesses under a new procedure in Florida, and the judgment upon the verdict of $389 million dollars was entered by Judge Schockett", stated Mr. Gunderson. This judgment, which includes $275 million dollars in punitive damages, is final and cannot be appealed. Also, the judgment is grounded in fraud and is not subject to discharge in bankruptcy."

Richard A. Altomare, President and CEO of USXP stated, " Should there be any sums not collected, they appear to be able to be carried over as a tax loss for the Company or any acquiring company. This is an additional benefit not yet fully addressed and still being studied by our professionals and advisors."

After the initial announcement Thursday, UXSP posted .032 (188%) gains, running from .017 to .049. The following day, USXP continued its rally during early trading, but quickly retraced as investors began questioning whether the company would be able to collect on the judgment. See Can They Collect? . USXP closed Friday off .006 (12.5%) at .042.

Can They Collect?

Houston, TX -- (OTCBB NEWSWIRE) -- Winning is not the same as collecting the $389 million judgment awarded to Universal Express, Inc. (USXP: .06) by a jury against Select Capital, Ronald G. Williams and Walter S. Kolker for fraud and conversion for failure to honor previous funding commitments and stock manipulation.

According to Bloomberg's Susan Decker, one of the defendants, Ronald G. "Williams is in a Florida prison serving a nine-year sentence on a state racketeering conviction while Kolker was released from a six-year term about a year ago.

Furthermore, the "trial centered only on damages after a default judgment was granted to Universal Express. No one appeared in the case on behalf of defendants."

The judge and Tifford provided different breakdowns of the award. Schockett said it included $97 million in compensatory damages and the rest in triple punitive damages. Tifford said Universal Express was granted $87 million in compensatory damages, $26 million in interest and $275 million in punitive damages.

Arthur Tifford, Universal Express's lawyer, said in the Bloomberg article, the fraud began in 1997, when Select Capital and Williams agreed to help Universal Express get conventional financing. Williams and Kolker convinced the company to issue debentures to offshore investors that were convertible into common stock while waiting 30 days for the financing.

Instead of actually arranging for the financing, Williams and Kolker arranged for people to get the debentures, and then demand the company stock at the end of the 30 days, Tifford said.

"Williams and his crew, who now have millions and millions of shares in these companies, sold them short and between the transaction date and settlement date, traded down the value, driving the price way down,'' Tifford said. ``They sold the stock for $2 and bought it back at 7 cents or 5 cents, to cover the shorts," according to the article.

At 11:33 EST, USXP retraces .008 (17%) to .04. Volume is heavy at 23,572,200.

Universal Express CEO Denies Rumor He Has Told Investors of "Imminent" Buyout

Houston, TX -- (OTCBB NEWSWIRE) -- August 9, 2001, Universal Express, Inc. (USXP: .092) has developed somewhat of a cult following since the announcement of their $389 million judgment, that they have reminded us of at least seven times since the initial announcement. In most of their reminder press releases, USXP reiterates they plan to collect on the judgment.

Certain supporters of USXP are generating a rumor that the CEO has specifically told them there are multiple offers on the table for the purchase of the company. Some even declare the offers are for over a dollar. The line in the sand is drawn between the believers and the doubters, and a formidable line it is. Posters on the message boards are battling it out.

In a phone conversation this morning, President and CEO of the Company, Richard A. Altomare, denied he had ever asserted such claims to investors, that obviously he is not able to that. Furthermore, he stated this was the first he had even heard of the rumor.

The speculation surrounding USXP is intense. Since the original announcement, USXP share price has been an unpredictable roller coast ride for shareholders. At 12:52 EST, USXP is down .037 (29%), with 9,586,100 shares traded.