NEWS........
Monday January 24, 9:18 am Eastern Time
Company Press Release
Global Telephone Communication, Inc. Announces
Revenue Participation Agreement and Joint Venture With
International Communications Enterprises Ltd.
CHICAGO--(BUSINESS WIRE)--Jan. 24, 2000--Global Telephone Communication, Inc. (OTC
Bulletin Board: GTCI - news) is pleased to announce that it has entered into a Revenue Participation
Agreement with International Communications Enterprises Ltd. (ICE) of London, England to
provide funding for a joint venture between ICE and First Telecom (FT) of Hong Kong.
ICE is a telecommunications solutions company providing telephony services to business customers,
with a focus on multinational companies in the European Union, North America and the African
States.
FT of Hong Kong operates 16 earth stations (VSATs) in major provinces in the Peoples Republic of
China (PRC) as well as Hong Kong. This joint venture will allow ICE to deliver voice, fax and data
traffic into the PRC via the earth stations owned by FT. ICE will supply inbound minutes to the PRC
from Europe, North America and the African States. FT has retail sales teams in China developing
outbound minutes from China that ICE will carry for termination.
GTCI, as a strategic financial partner, has also entered into a second joint venture with ICE to assist
in the development and distribution of promotional commemorative prepaid calling cards relating to
sports figures. The first contract is with Yamaha Motors Europe Corporation, a major motorcycle
manufacturer which supports a number of racing teams.
The promotional calling cards will be a combination of traditional prepaid calling cards and
commemorative products containing brilliant images of the racing cycles and riders, past and present,
representing great value for Yamaha fans and customers. The distribution of these cards will be
through Yamaha dealers, Yamaha team shops, race circuits, sponsor outlets, all Yamaha
publications, and the Yamaha web site, etc.
GTCI expects to invest as much as one million dollars ($1,000,000) for design, artwork, impression,
printing, testing and delivery of satisfactory network transport and support capabilities over the next
year. In exchange, GTCI will receive 50% of ICE's gross monthly revenue until GTCI has received
two times its original investment and subsequently, 25% of gross monthly revenues for as long as the
contract is in force, including renewals.
To date GTCI has invested approximately one half million dollars ($500,000) for the two ventures
and expects to see initial revenues in February 2000. Revenues presently are reasonably expected to
exceed $10,000,000 for the calendar year 2000. Additional calling card contracts are presently
being concluded.
``This partnership not only significantly accelerates our revenue streams, but also allows GTCI to
explore expanded partnerships with telecommunications companies with existing and growing
business opportunities in both the Peoples Republic of China and in the European community.'
stated Thomas C. Brandenburg, CEO.
This press release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and section 21E of the Securities and Exchange Act of 1934 and is subject
to safe harbor created by these sections. Actual results, performance or achievements could differ
materially from those anticipated in such forward-looking statements, which involve numerous risks
and uncertainties, including the Company's ability to market its goods and services and future
customer acceptance for these goods and services.
Contact:
Dwayne Yaretz, 800/668-9880 |
