XFONE SIGNS LETTER OF INTENT
TO ACQUIRE FACILITIES-BASED TELECOMMUNICATIONS SERVICE
PROVIDER
May 6, 2004
JACKSON, Miss. and LONDON--(BUSINESS WIRE)--May 6, 2004 -- xfone, Inc., today announced that it has signed a Letter of Intent to acquire WS Telecom d/b/a eXpeTel Communications, a telecommunications service provider based in Jackson, Mississippi. The acquisition is expected to add more than $5 million in annual revenue and be accretive to xfone's 2004 earnings. The transaction, subject to the signing of definitive agreements and customary closing conditions, is expected to close by July 2004. The terms of the acquisition were not disclosed.
eXpeTel provides residential and business customers with high quality local and long distance telephone services, as well as cable television and high speed Internet to planned and multi-dwelling apartment communities. The Company’s integrated multimedia services, combining digital voice, data and video over third-generation broadband infrastructure, are available to customers on a single itemized bill.
Guy Nissenson, President and CEO of xfone, said, “We are extremely pleased with this opportunity to establish xfone’s presence in the U.S. telecom market. We found in eXpeTel all the ingredients that we sought in a target company: a capable and experienced management team, a strong recurring revenue base driven by both residential and business customers, a comprehensive service offering including local, long distance, wireless and Internet, and of state-of-the-art facilities with an advanced infrastructure. The eXpeTel business model lends itself well to our current strategy and to the model of our UK subsidiary, Swiftnet. We believe that we will be able to leverage the synergies of the two companies, resulting in joint interconnect agreements, as well as the sharing of technology and systems.”
Wade Spooner, Chairman and CEO of eXpeTel commented, “We are excited about the prospects of becoming a part of xfone. We are confident that the synergistic business plans, coupled with the strong management teams of the two companies create an exceptional opportunity to continue toward our strategic growth initiatives. Additionally, new and existing customers in our service areas will benefit from the traditional and next-generation service offerings that we will continue to make available. We are looking forward to joining the xfone management team to support our aggressive expansion plans.”
Mr. Nissenson added, “The growth potential in both the UK and the U.S. is tremendous and this acquisition positions the Company well to capitalize on the opportunities that exist in the U.S. market. We are working diligently toward further development of xfone according to our successful business model and implementation of our long-term strategy, focusing on growth and profitability, utilizing automation and maintaining low overhead.”
The Oberon Group is acting as a financial advisor to xfone in regard to this transaction.
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers across Europe, Asia, North, Central and South America, Australia and Africa.
This press release contains forward-looking statements.
The words or phrases "should," "would
be," "will allow," "intends to,"
"will likely result," "are expected to,"
"will continue," "is anticipated,"
"estimate," "project," or similar
expressions are intended to identify "forward-looking
statements." The Company's financial results reflected
above should not be construed by any means as representative
of the current or future value of its common stock.
All information set forth in this press release, except
historical and factual information, represents forward-looking
statements. This includes all statements about the company's
plans, beliefs, estimates and expectations. These statements
are based on current estimates and projections, which
involve certain risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties
include issues related to rapidly changing technology
and evolving standards in the industries in which the
Company and its subsidiaries operate; the ability to
obtain sufficient funding to continue operations, maintain
adequate cash flow, profitably exploit new business,
and license and sign new agreements; the unpredictable
nature of consumer preferences; and other factors set
forth in the Company's most recently filed annual report
and registration statement. Readers are cautioned not
to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date
hereof. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Readers
should carefully review the risks and uncertainties
described in other documents that the Company files
from time to time with the Securities and Exchange Commission.
| For More Information, Please Contact: |
 |
| U.S.
IR Contact |
Israel IR Contact |
John Nesbett/Jennifer Beloeau
Institutional Marketing Services (IMS)
Phone: 1.203.972.9200.
E-mail: jnesbett@institutionalms.com |
Zvi Rabin
Kwan Communications
Tel: (Israel) +972 50 560 0140
E-mail: zvi@kwan.co.il |
|
| Xfone Contact |
|
Niv Krikov
Chief Financial Officer
Phone: + 972.39254446 (Israel)
E-mail: E-mail: niv@xfone.com |
|
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