cavion.com Signs Multi-Million Dollar Deal With Convergent Communications for Enterprise Network Support
Partnership Will Expand cavion.com's CUiNET Network for Credit Unions
DENVER, Dec. 13 /PRNewswire/ -- cavion.com (Nasdaq: CAVN), a leading credit union business-to-business communications and Internet services company, and Convergent Communications(TM), an Enterprise Network Carrier providing single source business communications solutions, today announced that Convergent Communications will be cavion.com's exclusive provider of network services and support for cavion.com's nationwide CUiNET (R) network. CUiNET (the Credit Union interactive Network) is a private business-to-business Internet communications network designed exclusively for the credit union industry. During the course of the five-year contract, cavion.com anticipates purchasing approximately $25 million worth of additional services on Convergent Communications' enterprise network.
The Enterprise Network Services (ENS) agreement will permit cavion.com to deploy its national CUiNET network faster and without the expenditure of the approximately $14 million of network capital that was originally planned, by utilizing Convergent Communications' state of the art IP + ATM network instead. In addition, the company believes that the cost savings provided by outsourcing its nationwide CUiNET service needs will enable cavion.com to aggressively price its products and services to its credit union customers.
ENS, Convergent Communications' signature offering, allows cavion.com to gain and maintain complete control of its communications without having to own and support the infrastructure. Convergent Communications owns the data, voice and other communications networks within a customer's premises in exchange for a monthly service agreement to manage, maintain and upgrade that network.
"This agreement provides cavion.com with a firm foundation as we move forward to become the leading nationwide provider of secure Internet business-to-business network and online banking services to the credit union industry," said David J. Selina, president and CEO of cavion.com. "We are now positioned to greatly expand our network to meet the growing needs of our customers."
"ENS allows cavion.com to execute its national expansion by leveraging Convergent Communications' nationwide infrastructure and technical resources," said John R. Evans, chairman and chief executive officer of Convergent Communications. "We are very pleased that cavion.com chose us as its Enterprise Network Carrier."
CUiNET is a secure private network developed exclusively for the credit union industry. CUiNET provides secure communications connections to deliver services and information to and from credit unions and related organizations such as corporate credit unions, credit union leagues and credit union vendors.
About Convergent Communications
Convergent Communications Services Inc., a wholly owned subsidiary of Convergent Communications Inc. (Nasdaq: CONV), is an Enterprise Network Carrier providing single-source integrated data and voice communications solutions. With operations in 35 markets, the company's services include the design, implementation, support and monitoring of data and voice networks and Internet services. Through its Enterprise Network Services (ENS) offering, Convergent Communications owns, manages, maintains and monitors client data and voice networks under long-term service agreements.
For more information on Convergent Communications, visit the company's Web site at converg.com .
About cavion.com
cavion.com offers products and services for business-to-business communications, secure Internet financial products such as online banking and bill paying services, and secure Internet access and services for its customers. The company is also building and managing a secure private communications network (CUiNET) exclusively for the credit union industry. The network acts as a communications platform for the delivery of services and information to and from credit unions and related organizations. Currently, approximately 85 credit union entities in 18 states are part of the cavion.com network.
The company's headquarters are located at 7475 Dakin Street, Suite 607, Denver, Colorado 80221. Its telephone number is 303-657-8212. Its Web page is cavion.com .
The statements made by Convergent Communications(TM) in this press release may be forward-looking in nature. Information in this press release is qualified by the more detailed information contained in the company's 1998 annual report on Form 10-K filed with the Securities and Exchange Commission on March 18, 1999 and its quarterly reports on form 10-Q filed on May 14, 1999, August 11, 1999 and November 10, 1999. Forward-looking statements in this news release are expectations, not historical facts. Such statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially. Such risks and uncertainties include, but are not limited to, the degree to which the company is leveraged and the restrictions imposed on the company under its existing debt instruments that may adversely affect the company's ability to finance its future operations, to compete effectively against better-capitalized competitors and to withstand downturns in its business or the economy generally; and other factors discussed in the company's filings with the Securities and Exchange Commission.
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