FNET ANNOUNCES NEW VOICE OVER INTERNET JOINT VENTURE
OTCBB FTEL
For Immediate Release
May 14, 1998
FNET ANNOUNCES NEW VOICE OVER INTERNET JOINT VENTURE
Franklin Telecom's ISP Signs First International Pact In Plan to Build Global IP Network
Westlake Village, CA, May 14, 1998 -- FNet Corp., an Internet subsidiary of Franklin Telecom
(OTC: FTEL), announced today it has entered into a joint venture with LibertyOne to extend voice
over the Internet service to New Zealand and Australia.
According to FNet chief executive officer James L. Magruder, "The purpose of the joint venture is
to implement voice over IP in Australia and New Zealand which will then connect to the world via
the FNet network. This is the first of several alliances we are forging in line with our announced
strategy to help FNet move quickly and with strength into the international Internet telephony
marketplace."
Clive Raines, Managing Director of LibertyOne New Zealand, commented, "New Zealand was the
first country in the world to completely deregulate its telecommunications infrastructure and offer a
modern digital telephone network from which to launch a real 'Next Generation Telco' and new
value added services. The Australian market now offers the same opportunities in a larger market
having deregulated last year. We are delighted to be part of this new international network."
According to Magruder, "Our mandate is straightforward and exciting: we are going to build a
global Voice over IP Network, utilizing Franklin's Tempestr Data Voice Gateways. By integrating
both cutting edge Voice over IP technology and conventional telephony into our network, we can
fulfill our commitment to provide the finest domestic and international voice quality at the lowest
cost."
Terms of the agreement specify that LibertyOne, a leading provider of Internet service as well as an
authorized carrier with ties to New Zealand Telecom, will be responsible for sales, marketing and
in-country support, while FNet will deploy the network and oversee billing.
Magruder said the target date to debut the FNet/LibertyOne service in New Zealand is this August
with Australian service scheduled to kick off in September. "While the first stage of this deployment
will focus on international service, plans call for several nodes to be complete and ready for national
traffic within New Zealand during the first quarter of 1999," he said.
Magruder confirmed that FNet plans to deploy its network, which utilizes both voice over IP and
traditional off-net switching capability, in at least 50 countries within twenty-four months, including
50 on-net cities up and running by the end of this year.
LibertyOne Limited (www.libertyone.com.au) was formed in 1998 to combine several successful
Internet and multimedia related companies. These include magNET Internet Connections Pty
Limited, one of Australia's largest Internet Service Providers and Comtel Technologies. Comtel
holds patents for an ATM (Asynchronous Transmission Mode) Fast Packed Digital Switch which it
is developing in the prestigious Malaysian MSC (Multimedia Super Corridor). Negotiations are
underway in New Zealand to obtain a full FNet interconnection agreement with Telecom New
Zealand, the equivalent of US 1+ access.
The primary business of Franklin Telecom (OTC: FTEL), founded in 1981, is the design and manufacturing of communications devices, high
speed LAN, WAN, Telco and Satellite Systems and software. Franklin has an installed base of over 100,000 nodes worldwide. Franklin's Internet
subsidiaries, FNet and Internet Passport provide services using FTEL products.
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Certain statements in this news release constitute "forward-looking statements" with the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors that many cause the actual results, performance or achievements, express and implied by such forward-looking statements.
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