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Thursday January 8, 9:01 am Eastern Time
Company Press Release
SOURCE: TELS Corporation
TELS Corporation Signs Letter of Intent to Purchase KS Telecom, Inc.
AMERICAN FORK, Utah, Jan. 8 /PRNewswire/ -- Stephen M. Nelson, President of TELS Corporation (Nasdaq: TELS - news), today announced that TELS has signed a letter of intent to purchase K.S. Telecom, Inc., dba Key Systems U.S. Key Systems has offered competitively priced, fully featured, proprietary telephone and voice mail systems to small- to medium-sized businesses for 10 years under the Atlas and Salta brands. The acquisition is being carried out with the assistance of Travis Capital, financial advisor to TELS. Key Systems is also beginning to introduce a new, advanced family of digital telephone systems, to include the Atlas ISDN100 and ISDN500 systems. Key Systems offers ''InnFONE,'' a telephone system especially designed for lodging properties with up to 400 rooms, with a PC front desk system and an integrated voice mail system. Key Systems also provides OEM telephone systems products to Cortelco (formerly ITT Telecom) under the Odyssey brand.
Comments from John L. Gunter, Chairman and CEO of TELS Corporation
''Key Systems will become one more important foundation piece in our strategy to build shareholder value on the Nasdaq Small Cap Market and, at the same time, to build our product offerings for lodging and general business customers. Key Systems should have a significant and positive impact on earnings per share in 1998 and thereafter. There are important synergies with our existing products and those offered by Key Systems: TELS can help Key Systems penetrate the economy lodging industry; and Key Systems can help TELS by being involved with customers at the onset when telephone systems are being purchased. TELS will thus have a much wider range of primary and ancillary products to offer its customers. As a result, TELS will substantially increase its addressable markets and will take an important step in transforming itself from participating in relatively narrow niche segments to being positioned at the center of the communications industry for many small to medium-sized businesses. In addition, Key Systems will add important marketing and sales, and operational capabilities to our management team.''
Comments from Kyle Hollifeild, Executive Vice President of Marketing and Sales, and Co-owner of Key Systems
''We have known and respected TELS, its products and its senior management team for many years. With the introduction of our new digital product line, Key Systems will be able to address a virtually unlimited market opportunity. Sami Charnoubi, Key Systems President, and I, as the co-owners of Key Systems, felt the many opportunities before us could best be realized through the acquisition of our company by TELS. TELS offers us the ability to continue to devote our efforts to the growth of Key Systems while making available corporate infrastructure, capital, technology and complementary products and dealers.''
Nick Travis, President of Travis Capital, indicated that Travis Capital has now been released to raise investment capital in support of TELS' acquisition and expansion initiatives.
TELS Corporation through its subsidiaries, designs, builds, assembles, sells and services call accounting and other telecommunications systems. The company also assembles electronic systems on a contract basis, as well as designs, sells and services computer software products.
SOURCE: TELS Corporation
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