S.W, INVT, BULLISH NEWS: InvestAmerica, Inc. Elaborates on Recent Announcement
PARK CITY, Utah, Nov 2, 1999 (BUSINESS WIRE) -- InvestAmerica, Inc.
(OTCBB:INVT) Elaborated on the Recently Announced Plans to Enter the
Fiber Optics Network Business Through the Planned Reverse Acquisition
of FiberX.
Brian Kitts, president and CEO, stated, "I am very excited by the
opportunity to participate in the fiber optics arena and by the
potential that this brings to the shareholders of INVT."
Until now, ownership of optical fiber and the creation of
communications networks has been the exclusive domain of the large
carriers. Deregulation and recent private fiber builds have created the
advantageous situation where INVT can participate in this very
lucrative market.
One of the fastest growing sectors in the telecommunications industry
today is the wholesale market. A recent Yankee Group study forecast
this market as growing from $8.3 Billion US in 1998 to $22.7 Billion US
in 2002.
The business plan has identified two distinct but complimentary
opportunities. The first is the arbitraging of dark fiber. FiberX
intends to acquire dark fiber in quantities of 12 to 44 strands and
resell them to companies that only require 2 or 4 strands for their
networks. FiberX may also offer to manage the fiber for these
customers. By managing a large number of fibers from a central
operations center, they will be able to provide this service more cost
effectively than each company managing their own network.
Secondly, FiberX is developing a targeted portfolio of services to
offer to the wholesale market. The network approach will be to create
optical channels through the deployment of Dense Wave Division
Multiplexing (DWDM) equipment. Some of these channels will be offered
directly to companies while additional network layers will be added to
the remaining channels to create advanced communications services.
FiberX intends to offer its customers a variety of voice, data and
video services using ATM as the transport layer. Additionally FiberX
intends to offer advanced IP switching services as well as carry
Internet traffic, which continues to grow dramatically.
The company intends to disclose the intended merger date and the terms
of the reverse acquisition later this week.
Kitts also announced that the company will file a registration
statement with the Securities and Exchange Commission (SEC) to qualify
as a reporting company under the Securities and Exchange Act of 1934.
As a fully reporting Company, INVT will file quarterly and annual
financial statements and information in accordance with SEC guidelines
to ensure that the reporting status is maintained.
"This filing is a critical step in assuring our stockholders that we
are taking all the steps necessary to provide full disclosure with
timely and accurate information about our business operations,"
explained Kitts.
Statements about the company's future expectations and all other
statements in this press release other than historical facts are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and as that term defined in the Private Litigation Reform Act of
1995.
The company intends that such forward-looking statements be subject to
the safe harbors created thereby. Since these statements involve risks
and uncertainties and are subject to change at any time, the company's
actual results may differ materially from expected results.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
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CONTACT: InvestAmerica, Inc., Park City
Brian Kitts, 801/808-6096 or 435/615-8801
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