ADGI...from an October release
ADGI'S AFFILIATE EXPANDS INTO FEDERAL GOVERNMENT COMMUNICATIONS
Market
Business Editors
HICKORY, N.C.--(BUSINESS WIRE)--Oct. 11, 1999--American
Diversified Group, Inc. (OTC BB:ADGI) announced today that its
telecommunications affiliate, Global Transmedia Communications Corp.
(Global) has begun negotiations with the U.S. Government offering its
on-net calling services to Federal agencies in the U.S. and abroad.
Global stated that the U.S. government is the single largest
purchaser of calling services. Congress has enacted regulations
administered through the GSA/FSA giving small and growing companies
like Global a special opportunity to gain awards from large government
contracts. The Federal Government fiscal year has just begun and
receiving a successful award for services under its overall
telecommunications contracts will significantly increase revenues this
year over and above the contracts already held by Global for the
private services.
ADGI's affiliate began talks with the Federal Government some
time ago and now has received the approval to submit its bid for
calling services to and from its foreign locations and the U.S.
Dr. Hinton, Chairman of ADGI stated that "Global is in a unique
position to seek this government business on a favored basis due to
special government set asides enacted by Congress for small and
disadvantaged businesses allowing them to become involved in large
government contracts. Global is now working through the GSA on its
contract offer".
Congress has a policy of granting its overall telecommunications
contracts to a few large corporations who successfully bid for these
services. As a condition for awarding these contracts the Federal
government requires that these large corporations offer a portion of
each contract in turn to be available for subcontract to qualified
small businesses under a "set aside" program.
Additionally, ADGI and Global announced that merger talks are
successfully continuing and representatives of the companies will be
meeting next week to continue the required due diligence and seek to
finalize the steps for closing the merger before year end.
Certain statements in this release constitute forward-looking
statements or statements which may be deemed or construed to be
forward-looking statements within the meaning of the Private
Securities Act of 1995. The words "forecast", "project", "intend",
"expect", "should", "would", and similar expressions and all
statements, which are not historical facts, are intended to identify
forward-looking statements. These forward-looking statements involve
and are subject to known and unknown risks, uncertainties and other
factors which could cause the Company's actual results, performance
(finance or operating) or achievements to differ from future results,
performance (financing and operating) or achievements expressed or
implied by such forward-looking statements. The above are more fully
discussed in the Company's SEC filings. |
