FEVI news:
Thursday September 14, 9:18 am Eastern Time
Press Release
FEVI's Sophisticated Communications to
Become a Facilities-Based Provider
This Combined with New Sales Commitments Positively Affects Bottom Line Results
MIAMI--(BUSINESS WIRE)--Sept. 14, 2000--New management of Far East Ventures, Inc. (OTCBB:FEVI - news)
and its wholly owned subsidiary, Sophisticated Communications, Inc., (SCI) announced today several important
company developments which will positively impact the company's bottom line profits over the short and long term.
According to Michael Fletcher, Founder and Chairman of SCI, and newly elected Chairman of FEVI, ``During the past
30 days, our company has made significant progress as a result of new financing facilities and because of our leverage
as a publicly traded entity. Our new asset based credit facility has provided us with the capability to move forward on an
agreement to purchase a state-of-the-art switch from a major telecommunications provider, which will change SCI's
status from a switchless reseller to a facility based provider. This alone will bring an additional 5% to 10% to our bottom
line. We have also just signed an agreement with a large master distributor of pre-paid phone cards, and have entered
into a letter of intent with one of the largest distributors of calling cards in the Northeastern U.S., which could contribute
an additional $50 million per year to SCI's revenue base. We are extremely optimistic about the bottom line results that
these new sales agreements will bring to SCI. We will continue to work on calibrating the various efficiencies which can
be achieved in our organization to further increase the margins on our products and services, thereby maximizing the
value of SCI for our shareholders.''
SCI's newly signed distribution agreement represents a minimum of 150 million minutes per year, which translates to
$12 million in annual sales for the company. Mr. Fletcher stated that the combination of this group's already established
sales network of 10,000 customers throughout the U.S. and SCI's corporate strength, actual sales will likely double the
anticipated size of the contract to more than 250 million minutes per year, or approximately $20 million in sales, by
giving the sales group the advantage of SCI's more competitive pricing plans through its switching facility, along with
the company's established reputation for excellence in product packaging.
The letter of intent Mr. Fletcher referred to, which has just been finalized, is also with a large sales and distribution
organization. This new development is in keeping with the significant acquisition plans which Mr. Fletcher announced
in late August. The structuring and realizing of these strategic agreements and acquisitions with such significant industry
players, combined with SCI's current business and new pricing capabilities as a facility based provider will allow the
company to exceed its previously projected gross revenues of $50 million, with a substantial increase in earnings before
interest, taxes, depreciation and amortization.
In addition, in order to better reflect its future plans for consolidated operations between the company's new
acquisitions, SCI and Far East Ventures, management has instructed its legal counsel to take the necessary steps to
accomplish this restructuring, which also includes re-naming the public holding company Sophisticated
Communications Holdings, Inc., and the application for a new trading symbol on the electronic bulletin board.
Since 1995, SCI has been an innovator in the prepaid calling card business, and is now one of the industry's leaders in
sales and distribution. The company specializes in providing private label cards for master distributors. Because of
senior management's extensive experience in telecommunications, the company provides a well blended product mix
with competitive international rates and a wide variety of calling cards, which benefits its network of distributors and
end users in maximizing market potential.
The Private Securities Reform Act of 1995 provides a ``safe harbor'' for forward-looking statements. Certain
information included in this Press Release (as well as information included in oral statements or other written statements
made or to be made) contains statements that are forward looking, such as those relating to consummation of
transactions, anticipated future revenues and/or success of current product offerings. Such forward looking information
involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly,
such results may differ materially from those expressed in any forward looking statements.
For further information, contact Lynne Perlmutter of The Consilium at 305/666-3990.
Contact:
The Consilium, Miami
Lynne Perlmutter, 305/666-3990 |
