American Multiplexer Corporation 'AMC' Announces a $19 Million Agreement to Purchase Satellite Services from Satmex
SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 3, 1999--American Multiplexer Corporation (OTC BB: AMUT) announced today that it has signed a $19 million agreement with Satmex to purchase satellite capacity over the next five years. Satmex owns and operates a state-of-the-art fleet of satellites covering all of Continental US and South America.
AMC is deploying its high-speed Internet and Virtual Private Network for delivering voice, video and data services direct to the PC or TV for multimedia applications such as video conferencing, distance learning, video on demand and Multicast push technology. AMC has integrated both satellite and terrestrial networks into a single platform, with commercial services scheduled to be available in the US and South America beginning in October 1999.
Under the current agreement with Satmex, AMC has projected over $96 million in revenue using the Satmex 5 satellite. The company expects revenue to increase further with the addition of new satellites and transponders as the global network expands coverage during this period.
AMC will also take advantage of the Loral Global Alliance worldwide network of satellite services, of which Satmex is a member. The Loral Global Alliance provides a network of regional and global operators including Satmex, EuropeStar and Loral Skynet.
According to Edward Tan, president of AMC, "The Satmex relationship enables AMC to offer services anywhere in the US and South America. We have customers that are now participating in our "Roll-0ut" program, whereby we install a satellite terminal at their office and demonstrate high-speed Internet access, video IP streaming, multicast and video broadcast to their desktop PC, LAN and TV. Once the customer has used the AMC network, he will typically sign a one year contract for services. Additional VPN and Intranet services may be subscribed as the applications become apparent to the customer."
ISPs, Integrators and Content Providers can visit AMC's headquarters and R & D facility located in Sunnyvale California for a demonstration of its high-speed services over satellite and understand how they can participate in offering AMC services to their customers.
Information in this press release, other than that of historical fact, is based on development schedules and projections that involve substantial risk and uncertainties. Reference is made to documents filed in compliance with Securities and Exchange Commission rules and regulations for a discussion of such risks and uncertainties and other factors that may have a material effect on the Company's business.
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Contact:
American Multiplexer Corporation, Sunnyvale
Doug Hanson, 408/730-8200
dhanson@amux.com
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