**NEWS**
Friday July 23, 11:35 am Eastern Time
Company Press Release
Frefax Inc. Announces First and Second Quarter
Profit and Loss Statement
TORONTO--(BUSINESS WIRE)--July 23, 1999--Frefax Inc. (''Frefax'') (NASDAQ:FFAX-news) Tuesday announced:
Sales for the first 6 months are $850,000 based on 2,000 customers @ $850.00 per year on average. Operating profit is
approximately $450,000. Fixed costs are approximately $100,000. The company has spent approximately $750,000 in
research and development, of the $750,000.
The Company has written off approximately $400,000 in development costs for a net loss of approximately $50,000.
The Company expects to have at least 3,500 customers by the end of its first 12 months of operation and should show a small
profit.
Frefax, Inc. is currently in the final stages of previously announced acquisition and anticipates being able to disclose the results
in the very near future.
Management is very optimistic about the direction the company has taken in the past several months and anticipates a continual
rise in productivity. Consumer response and demand are at high levels and Frefax, Inc. will take the necessary steps to keep up
with the demand.
Frefax, Inc. has proven technology that cuts the high cost of fax transmissions by up to 50 percent and over. The Frefax system
is connected to the customers fax machine which routes calls through its node (controller) at its hub, providing the customer
with virtually ''Unlimited Free Faxing'' to destinations throughout North America.
This release may contain forward-looking statements that involve risks and uncertainties, including with limitation, continued
acceptance of the company's products and services, increased levels of competition, products and technology changes, the
company's dependence on financing, third-party suppliers and property rights, and other risks detailed from time to time in the
company's federal filing, annual reports, offering memorandum and prospectus.
Contact:
Frefax Inc., Toronto
V.T. Franzke, 906/642-3553 |
