ProtoSource Corporation Secondary Offering Registration Statement Declared Effective by the SEC

Press Release: ProtoSource Corporation
February 19, 2001
FRESNO, CA -- ProtoSource Corporation (Nasdaq: PSCO; PSCOW; PSCOZ), Feb. 15 announced that its Form SB-2 Registration Statement, covering $3.6M in units of the Company's securities was declared effective on February 14, 2001 by the Securities and Exchange Commission. The firm commitment public offering is being underwritten by a syndicate managed by Kashner Davidson Securities Corporation, Sarasota, Florida.

The 800,000 units being offered at $4.50 per unit consist of two shares of common stock and one class B warrant to purchase one share of common stock. The class B warrants have an exercise price of $2.925 per share, exercisable until February 14, 2006. The units will not be a traded security. The common stock and class B warrants will trade on The Nasdaq SmallCap Market under the symbols ``PSCO'' and ``PSCOZ,'' respectively. In addition, the common stock and class B warrants will trade on the Boston Stock Exchange under the symbols ``PTS'' and ``PTS&Z'', respectively.

ProtoSource has granted to the underwriters an option covering an additional 120,000 units to cover over-allotments.

ProtoSource Corporation is made up of two divisions, psnw.com and Suncoast Automation, Inc. Psnw.com is an Internet Service Provider based in Fresno, California. This division offers: (i) high-speed Internet access reselling ADSL/SDSL; (ii) web design, development and hosting for small and medium-sized businesses; and (ii) outsourced technical support for other ISPs.

Suncoast Automation, Inc., is a Delaware corporation that provides interactive cable TV systems to the vacation ownership, or timeshare industry. The interactive system allows the resort guest to interface with the set-top box via a remote keyboard to access basic and premium TV programming, the Internet, games and the resort's property management system.

The statements contained in this Press Release contain certain forward looking statements, including statements regarding ProtoSource's expectations, intentions, strategies and beliefs regarding the future. All statements contained herein are based upon information available to ProtoSource's management as at the date hereof and actual results may vary based upon future events, both within and without the control of ProtoSource's management.

SOURCE: ProtoSource Corporation