S.W, INVT: InvestAmerica Inc. - Optica Communications Group Inc. -
Announces Details of Business Plans for the Next Twelve Months...
PARK CITY, Utah--(BUSINESS WIRE)--Dec. 1, 1999--InvestAmerica Inc. (Optica Communications Group Inc.) (OTCBB:INVT - news) Wednesday announced details of its business plans for the next twelve months.
Brian Kitts, director of the company, stated, ''Our plans to build value for our shareholders over the next twelve months are very aggressive. We have defined three major areas of activity that will each make a substantial impact on the overall value of the company.
''These three areas are dark fiber sales, bandwidth sales, and acquisition of complementary companies that will complete and enhance our service offerings to our customers.
''Our strategy for dark fiber sales is to form a consortium of companies to participate in the purchase and lighting of fiber along selected strategic routes that will eventually include all of North America with further connections to Europe, Asia, and South America in that order.
''Our fee for creating and managing the consortium will be 10% to 15% of the value of the fiber. We will receive this in cash or in dark fiber strands for our own use or a combination of the two. Approximately twenty consortia will be required to cover all of North America. In this way, we will create our own network with a worldwide footprint.
''Further income will be derived from the lighting and ongoing maintenance of the fiber network.''
Kitts added, ''We have identified four major high traffic routes that we will develop in the coming year. The total value will depend on the size of each consortium and the number of fiber strands acquired. The target value of the initial four routes is $125 million. Negotiations are already underway for $30 million of this capacity.
''Our plan is to complete the consortium within six months with the lighting of the fiber taking place in the second half of the year.
''Bandwidth will be created by the lighting of the fiber and the addition of an ATM network layer. Once this is complete in the second half of the year, we can implement our bandwidth strategy of offering various bandwidth services to our target customer base of Second-tier Carriers, Local Exchange Carriers, and ISPs.
''Our third area of focus for the upcoming year is acquisitions and joint ventures. We hope to complete several acquisitions in the upcoming months that will complete and expand our service offerings and add value to our customers purchasing dark fiber and bandwidth. We are currently conducting due diligence on three separate opportunities with projected closing dates within thirty to ninety days.
''If completed, they will add significant value to the company in the form of assets and significant recurring revenue. Details will be released when firm contracts are finalized.''
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 the term is 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 certain risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.
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Contact:
InvestAmerica Inc. (Optica Communications Group Inc.)
Brian Kitts, 801/808-6096
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