[GSTX Sells Consumer Internet Assets]
Tuesday February 8, 8:03 am Eastern Time
Company Press Release
SOURCE: GST Telecommunications, Inc.
GST Telecommunications Sells Consumer Internet Assets
ClearData.net to Also Purchase $25 Million in GST Network
Services Over Five Years
VANCOUVER, Wash., Feb. 8 /PRNewswire/ -- GST
Telecommunications, Inc. (Nasdaq: GSTX - news), a leading
Integrated Communications Provider (ICP) in California and
the western United States, today announced the sale of its
U.S. mainland consumer Internet customer base and other
select assets to Phoenix-based ClearData.net, Inc.
Under the terms of the agreement, GST will sell its mainland
consumer Internet operations to ClearData.net for $5.1
million in cash, plus ClearData.net common stock valued at
approximately $900,000. ClearData.net has also agreed to
purchase $25 million in network services from GST in the five
years following the sale.
``This agreement allows GST to concentrate on delivering
enhanced broadband and Internet services to business
customers in our western footprint,' stated Tom Malone,
acting chief executive officer of GST. ``We are focusing our
energy on developing a scalable IP network capable of
offering virtually unlimited bandwidth. With such strong
demand for our broadband and High Speed Internet
capabilities, it's in our best interest to concentrate on the
data-centric business market and partner with a consumer
market provider.'
``Forging relationships with Integrated Communications
Providers, such as this one with GST, will prove to be a key
component of our business strategy as we continue to grow our
organization and build out our network,' stated David G.
Jemmett, chief executive officer of ClearData.net.
Over the past year GST has established an Internet backbone
and introduced a series of reengineered data products to
capitalize on the explosive growth in demand for data
services. The Company's products include Frame Relay,
Asynchronous Transfer Mode (ATM), Point-to-Point Optical, and
High Speed Internet Access.
ClearData.net, a privately held, fully integrated provider of
data communications services, offers a full suite of products
and services including application and server hosting, high
speed Internet access and managed services. With points of
presence in major metropolitan markets and secured public and
private peering arrangements, ClearData.net serves
communications enablers and commercial businesses across the
United States over its next generation national broadband
network. ClearData.net is a trademark of ClearData.net, Inc.
Additional information is available at www.cleardata.net.
GST Telecommunications, Inc., an Integrated Communications
Provider (ICP) headquartered in Vancouver, Wash., provides a
broad range of integrated telecommunications products and
services including enhanced data and Internet services and
comprehensive voice services throughout the United States,
with a robust presence in California and the West.
Facilities-based GST continues to focus on its western
regional strategy by anchoring its next generation networks
in local markets and connecting them via long haul fiber
networks. Visit GST's Web site at www.gstcorp.com.
This release may contain forward-looking statements that
involve risks and uncertainties. Our actual results may
differ materially from the projections made here. Additional
factors that may affect actual results are contained in the
Company's filings with the SEC, including the report on Form
10-K for the period ended December 31, 1998. Forward-looking
statements in this release are made pursuant to the safe
harbor provisions contained in the Private Securities
Litigation Reform Act of 1995.
SOURCE: GST Telecommunications, Inc. |
