IDT Closes Acquisition of STAR Telecommunications' PT-1 Phone Card Division
NEWARK, N.J. & SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 2, 2001--IDT Corp. (Nasdaq:IDTC - news) and STAR Telecommunications, Inc. (Nasdaq:STRX - news) today announced that the companies have closed the sale of the debit card division of STAR's PT-1 Communications business unit to IDT Corp.
Under the terms of the transaction, which was initially announced on January 29, 2001, IDT acquired PT-1's debit card business and has assumed PT-1's obligations with respect to unused minutes on cards in distribution. Additionally, IDT has indemnified PT-1 for certain litigation liabilities and, under certain circumstances, will make an agreed amount of cash available to PT-1 to pay claims of other creditors.
``We plan to smoothly integrate the PT-1 debit card brand into our existing calling card operations, with the goal of building on our industry-leading position,'' stated Howard Jonas, Chairman and CEO of IDT. ``We are also looking forward to sharing as a stockholder in the turnaround that is already well underway at STAR under Brett Messing's capable leadership.''
``We are committed to returning STAR to profitability and developing partnerships with the leading companies in our industry,'' stated Brett Messing, Chairman and CEO of STAR. ``The sale of the phone card division to IDT will greatly assist us in achieving both of these objectives.''
IDT CORPORATION
IDT is a leading facilities-based, multinational carrier that combines its position as an international telecommunications operator with its experience as an Internet service provider to provide a broad range of telecommunications services to its wholesale and retail customers worldwide.
Through its own national telecommunications backbone and fiber optic network infrastructure, IDT provides its customers with integrated and competitively priced international and domestic long distance telephony, prepaid calling cards and digital subscriber line (DSL) service. The Company's Ventures division is developing several innovative telecom and Internet related businesses. Through its IDT Investments subsidiary, IDT has equity interests in several telecom and Internet-related companies.
Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and the Securities Act of 1934, involving risks and uncertainties. These statements refer to our plans to implement our growth strategy, improve our financial performance, expand our infrastructure, develop new products and services, expand our customer base and enter international markets. The forward looking statements also include our expectations concerning factors affecting the markets for our products, including the demand for long distance telecommunications, and Internet access services. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results that we anticipate. These risks and uncertainties include, but are not limited to, those risks discussed in this release. In addition to the factors specifically noted in the forward looking statements, other important factors that could result in those differences include (a) general economic conditions in the telecommunications and Internet markets, including inflation, recession, interest rates, and other economic factors; (b) casualty to or other disruption of our facilities and operations; (c) those discussed in our Annual Report on Form 10K for the period ended July 31, 2000; and (d) other factors that generally affect the business of telecommunications, Internet and other communications companies. We assume no obligation to update these forward looking statements or to update the reasons actual results could differ materially from the results anticipated in the forward looking statements.
STAR TELECOMMUNICATIONS
STAR Telecommunications provides global telecommunications services to consumers, long distance carriers, multinational corporations and Internet service providers worldwide. STAR provides international and national long distance services, international private line, prepaid calling cards, calling cards, dial around services and international toll-free services. Visit STAR at www.startel.com.
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. STAR's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents that STAR files with the SEC including those contained in STAR's prospectus and the Form 10-K for the period ended Dec. 31, 1999.
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Contact:
STAR Telecommunications
Tim Sylvester, (800) 899-1962
or
IDT Corporation, Newark
Norman Rosenberg, CFA
VP, Finance & Capital Markets
973/438-4001
or
Gil Nielsen
VP, IDT Corporate Communications
973/438-4002 |
