TAMPA, FL--(MARKET WIRE)--Jan 9, 2008 -- FTS Group, Inc. (OTC BB:FLIP.OB - News), a publicly traded acquisition and development Company, today announced that it has signed a letter of intent to spin-off its wholly owned subsidiary FTS Wireless, Inc. as a new a publicly traded Company. FTS Group will have 30 days to complete its due diligence of the target shell Company. The letter of intent calls for FTS Group stockholders to own a significant majority of the new shell.

FTS Group CEO Scott Gallagher commented, "We've been working on attempting to spin-off our wireless subsidiary for quite some time. We now think we have a solid comfort level with a particular public shell Company to proceed. We'll be conducting our final due diligence over the next 30 days and if satisfactory would close the spin-off shortly thereafter." Gallagher continued, " As I've stated in the past getting this deal done should unlock the growth potential of FTS Wireless by allowing the Company to use its own currency for acquisitions and financing without diluting FTS Group shares at all. At the same time we'll create a new asset class for our stockholders. Our plans will be to set a dividend date immediately after closing and then dividend some of the shares out to our stockholders. We'll probably dividend the shares out in stages to allow the new Company to develop its own market."