Electric & Gas Technology Finances QUALCOMM-Supplied Wireless Telecom System For the Democratic Republic of Congo
PR Newswire, Thursday, June 25, 1998 at 14:32
DALLAS, June 25 /PRNewswire/ -- Electric & Gas Technology, Inc.
(NASDAQ:ELGT) today announced that following completion of $2.5 million in
financing by ELGT for African Telecommunications, Inc. (AfriTel), and
additional financing by QUALCOMM Inc.(NASDAQ:QCOM), AfriTel will proceed with
installation of the first cdmaOne(TM) (IS-95 Code Division Multiple Access)
digital wireless local loop telephone system in sub-Saharan Africa. The
state-of-the-art telecommunications system is expected to be operational in
Kinshasa, Democratic Republic of Congo in late 1998.
ELGT has executed an agreement to acquire 100% of AfriTel, which holds
valuable communications licenses in the Democratic Republic of Congo and
Ghana. AfriTel has a supply agreement with QUALCOMM for $70 million of
equipment and services for the digital systems.
S. Mort Zimmerman, President of ELGT, stated that, "The CDMA wireless
local loop system will be even more technically sophisticated and modern as
compared to any other part of the world, bringing Africa into state-of-the-art
telecommunications. To have the privilege of working with a $2 billion
company such as QUALCOMM is highly advantageous to ELGT and AfriTel."
John Major, President of QUALCOMM's Wireless Infrastructure Division,
said, "We are pleased to be working with ELGT to enable AfriTel to bring the
highest quality telecommunications service to the Democratic Republic of
Congo. Telecommunications development in sub-Saharan Africa is a key driver
for economic growth, and we are proud to be participating in this project."
ELGT has also supplied financing for satellite components purchased from
Vitacom Corporation for its operations in conjunction with the Company's
telecommunications projects.
For fiscal year 1997, ELGT reported sales of $17,931,249 with earnings
(including sale of a subsidiary) of $9,362,399 or $1.07 per share. Common
stock is quoted at $2.80, reflecting a P.E. ratio of 2.6.
ELGT's decision to diversify into the vast telecommunications industry was
approved by the ELGT Board of Directors. A special stockholders meeting will
be called pursuant to the filing of a proxy.
The Board of Directors also anticipates a plan to spin off certain
non-telecommunication assets of ELGT as a dividend to its stockholders, to be
announced at a later date.
Headquartered in San Diego, QUALCOMM develops, manufactures, markets,
licenses and operates advanced communications systems and products based on
its proprietary digital wireless technologies. The company's primary product
areas are the OmniTRACS system (a geostationary satellite-based, mobile
communications system providing two-way data and position reporting services),
CDMA wireless communications systems and products and, in conjunction with
others, the development of the Globalstar low-earth-orbit (LEO) satellite
communications system. Other company products include the Eudora Pro
electronic mail software, ASIC products, and communications equipment and
systems for government and commercial customers worldwide. For more
information on QUALCOMM products and technologies, please visit the QUALCOMM's
web site at (http://www.qualcomm.com).
Electric Gas & Technology, Inc. was formed in 1985 to serve as a holding
company for operating subsidiary corporations. These subsidiaries operate in
three distinct business segments: water products, natural gas equipment and
electrical equipment/meter enclosures. The company is dedicated to internal
growth related to its atmospheric water technology in addition to growth
through acquisition.
This material was prepared by The Hawke Group, Inc. ("Hawke") for the
Company discussed herein, based upon Company-supplied information or other
sources believed to be reliable. The information is not guaranteed by Hawke
for accuracy or to be all-inclusive. Forward-looking statements in this
release are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. This news release contains
forward-looking statements that are subject to risks and uncertainties,
including timely product development and commercial implementation of
products, as well as the other risks and details from time to time in SEC
reports. This material is information only and is not an offer or
solicitation to buy or sell the securities. Hawke, its affiliates, and/or its
officers, directors and employees may from time to time have a position in
these securities.
SOURCE: Electric & Gas Technology, Inc.
-0- 6/25/98
/CONTACT: Edmund W. Bailey, VP & CFO, Electric Gas & Technology,
972-934-8797; or The Hawke Group, 954-564-7114, or fax, 954-564-9848/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, extension 122170/
/Web site: hawkegroup.com
Companies or Securities discussed in this article:
SymbolNameNASDAQ:ELGTElectric & Gas Technology IncNASDAQ:QCOMQualcomm Inc |
