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DualStar Shifting Focus From Building Industry To Communications

February 28, 2001
The parent company of Centrifugal/Mechanical Associates Inc. is currently evaluating its holdings in the building industry. For the past year, DualStar's construction-related businesses have been classified as "discontinued operations."

DualStar Technologies Corp. announced that its communications subsidiary, OnTera Inc., formerly known as DualStar Communications Inc., is refocusing its expansion efforts by concentrating on core assets located in New York and Los Angeles and by operating subscription video provider ParaComm Inc., acquired by DualStar in May 2000.

In connection with this effort, OnTera is implementing company-wide cost reductions, including reductions in personnel, infrastructure and capital expenditures in noncore markets.

Throughout the previous year, DualStar has announced its intention to expand its telecommunications business and has characterized most of its construction-related businesses as "discontinued operations." Currently, the construction-related businesses backlog is approximately $50 million.

DualStar's building controls company, Integrated Controls Enterprises Inc., also continues to grow its portfolio of business and has completed contracts for several customers this past year, including large educational institutions and major communications companies, airlines and hotel chains.

"Although DualStar has reported its primary construction-related businesses as 'discontinued,' as a result of the pending sale of the electrical and mechanical businesses, DualStar has continued to focus on the operation of the construction-related business simultaneously with our build-out efforts at OnTera," stated Gregory Cuneo, president and chief executive officer of DualStar.

DualStar Technologies, through its subsidiaries, designs and installs infrastructure systems and provides services that control and enhance the environment in buildings.

DualStar subsidiaries, including Centrifugal/ Mechanical Associates Inc., High-Rise Electric Inc. and Integrated Controls Enterprises Inc., provide services governing heating, ventilation and air conditioning, electrical contracting, building control and energy management (BMS), and security and safety.

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