***NEWS IS OUT CONTRACT*******
Americel Awards $330 Million Contract to Platforms International
Airborne Wireless Cellular - First to Market
May 15, 2000 04:00 PM Eastern Time
LOS ANGELES, May 15 /PRNewswire/ -- Platforms International Corporation, ("PICTEL")PLFM , the developer of the revolutionary Airborne Relay Communications ("ARC") System for voice and data wireless communications, announced today that two years of intensive marketing efforts in Brazil have culminated in a landmark, $330 million contract award from AMERICEL S.A.
William C. Martin, Chairman & CEO of PICTEL stated: "The award of this contract by AMERICEL, one of the leading cellular communications service providers in Brazil, is a resounding validation of our airborne wireless communications technology in one of the most competitive telecommunications markets in the world."
The contract between PICTEL and AMERICEL, which is conditional on the performance by Platforms of a successful ARC System BETA Demonstration in Brazil in the 4th Quarter of 2000, is for a ten-year lease of up to five (5) ARC Systems. The first ARC System contract value is USD$60 million, and the total contract value is USD$330 million for five systems. The Contract includes product licenses, maintenance and operations fees, as well as a gross revenue sharing partnership in the new technology. This makes Platforms the first company in airborne wireless communications to achieve a revenue-sharing partnership with a major Brazilian telecommunications service provider.
Under the terms and conditions of the contract, PICTEL and AMERICEL have agreed to jointly field the ARC System BETA demonstration in Brazil, at a new telecommunications service facility to be established and equipped by AMERICEL in the Central region of Brazil. PICTEL will provide the TDMA-payload-equipped ARC System mission aircraft, and overall project and technology management resources. AMERICEL and PICTEL will jointly manage and monitor ARC System technology performance, as well as public relations activities and press coordination. Grupo AEROMOT, PICTEL's Aviation Strategic Partner, will organize and coordinate all aviation-related resources and logistics, including BETA demonstration flight plans, pilots, permits, licenses, schedules, and performance reports, as well as support equipment, aircraft hangars, transportation, and security. LCC International, the prestigious telecommunications performance independent audit firm that audited, and reported to AMERICEL the results of the ARC System ALPHA demonstration in Alpine, Texas, in September 1999, will again be engaged to audit, document, and report results of the BETA demonstration.
Victor L. Ziller, President of Platforms International Corporation Do Brazil, and Vice President of Latin American Operations for Platforms International Corporation (U.S.A.), stated: "The BETA demonstration will be a landmark industry event, showcasing the international premiere of the ARC System. The function will be attended by Brazilian Government dignitaries, South American telecommunications industry officials, and members of the Brazilian and international press."
The ARC System BETA demonstration will be comparable to the successful ALPHA demonstration, which earned Platforms the Contract. The Beta demonstration will be conducted over a period of thirty days, and the System will be jointly tailored by AMERICEL and Platforms for implementation as a large-footprint / low-density cellular service "production system." The system will be configured to provide live service coverage to an area with a large number of small towns, a population of 700,000, and an initial service coverage capacity of approximately 30,000 subscribers. It is anticipated the subscriber base in this Region will grow to 90,000 subscribers during the term of the lease.
Chris Oliver, AMERICEL's ARC System Project Manager, stated: "Our company currently covers areas with a total population of approximately 7.8 million people, or 57% of the population in our Region. One of our key corporate goals is to penetrate higher-cost rural areas and provide cost-effective coverage to smaller cities with low population densities and large land areas."
AMERICEL (http://www.americel.com.br), one of the most progressive and fastest growing cellular service providers in Brazil, increased their subscriber base by more than 900% in their first full year of operations. The Company currently serves more than 250,000 subscribers, and owns licenses to provide a wide variety of cellular services to the Centre-West region of Brazil: "Region-7." This Region covers seven states: Acre, Mato Grosso, Mato Grosso Do Sul, Rondonia, Goias, Tocantins, and the Federal District (Capital City of Brasilia), approximately one third of the total territory of Brazil, with a population of approximately 14 million people (http://www.americel.com.br/regiao7.htm).
Mr. Martin concluded: "Our Contract with AMERICEL makes PICTEL the first-to-market provider of an exciting new technology that will revolutionize voice and data wireless communications."
For more information on Platforms International Corporation and its revolutionary airborne wireless communications technology, please visit the Company's Web site at: platforms-intl.com. Those interested in receiving e-mails of future press releases can register on the Company's Web site.
Please Note: A live, news teleconference hosted by Platforms International will follow this Press Release at 2:00 PM PST; 5:00 PM EST. To join the teleconference, please call (847) 413-3753; Confirmation Number 2341502. The teleconference will also be broadcast live on the Internet, at vcall.com. Please register ten minutes before starting time. |
