FNet Acquires LDNet
Thursday July 2, 9:30 am Eastern Time
Company Press Release
Franklin Telecom's FNet Acquires LDNet
Acquisition Accelerates FNet Deployment
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--July 2, 1998--Franklin Telecom (OTC BB:FTEL)
Thursday announced that its subsidiary FNet Corp. has acquired LDNet, a Voice Over IP company based in
Bainbridge, Ohio.
LDNet was among the first companies to test Franklin's Tempest Data Voice Gateway. LDNet's current installations
include Chicago; St. Louis; Detroit; Cleveland, Akron and Columbus, Ohio; New York City; and Washington,
D.C./Baltimore.
According to FNet president Kevin Kuykendall: ''This is an excellent step forward for FNet. LDNet was attractive
to us for several reasons: this acquisition brings us contacts, contracts and minutes -- all ready to go. LDNet is a
facilities-based carrier and ISP.
''Their DS3 (the equivalent of 28 T-1 lines) backbone capacity ensures the high quality of service that FNet requires;
their embedded customer base will expedite revenues for us while minimizing our marketing expenses.''
Current LDNet nodes are being upgraded during July and will begin to function as part of the FNet Network in
August. They will offer features including discounted long distance service, prepaid phone cards and voice-mail.
According to Kuykendall, LDNet's president, Mitchell Marks, has been named director of Sales for FNet.
Kuykendall went on to say: ''In Mitch Marks, we are bringing aboard an extremely effective manager who is
experienced in both U.S.-to-U.S. and U.S.-to-International telephony sales. He has strong relationships with several
domestic carriers. In addition, he will negotiate and oversee a network of distributors and resellers for FNet products
and services.''
Marks said: ''I view this as one of those 'once in a lifetime' opportunities. Voice Over IP is ready to explode onto
the world's marketplace. FNet, with the vertical integration of products and services made possible by its relationship
with Franklin Telecom, is in position to compete with anyone.''
Kuykendall also announced that FNet has received initial approval for its FCC 214 application. This formalizes
FNet's status as a common carrier.
The FNet global network utilizes traditional land lines, Internet telephony and satellite technology to assure toll quality
calls by the most cost-efficient means throughout the world. Current roll-out plans call for 250 domestic locations
within the next 24 months with an additional 250 international sites within 36 months.
The primary business of Franklin Telecom, 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.
Certain statements in this news release constitute ''forward-looking statements'' within 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 which may cause the actual results,
performance, or achievements of the company to be materially different from any future results, performance or
achievements, expressed or implied by such forward-looking statements.
Contact:
Franklin Telecom, Westlake Village
Helen West, 805/373-8688
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