SAGE on news now:
Solomon Alliance Group, Inc. Negotiates Controlling Interest In Liberian
Telecommunications Joint Venture
ATLANTA, May 31, 2001 (BUSINESS WIRE) -- Solomon Alliance Group, Inc. (OTC
BB:SAGE) announced today that it has entered into an agreement that will result
in the Company owning 60% of the outstanding shares of Wavecom Global
Corporation ("Wavecom Global"), a corporation formed to engage in international
telecommunications projects.
Wavecom Global and the Republic of Liberia recently entered into a joint venture
agreement, executed by the President of Liberia, to privatize and upgrade
Liberia's telecommunication infrastructure. Wavecom Global owns 55% of the joint
venture company, which will be the national telephone and telecommunications
company of Liberia.
Solomon, through its controlling interest in Wavecom Global, will be able to
take advantage of a 12-year "exclusivity period" granted to Wavecom Global in
the agreement with Liberia.
This national telecommunications company will serve as the exclusive vehicle
through which Wavecom Global and the government will install a new, modern
central switch, and build-out, operate and maintain the nationwide
telecommunications infrastructure for the country of Liberia, including wireless
systems, high speed Internet access and modern billing and collection
technologies.
The joint venture agreement reflects approximately $80 million in improvements
to the Liberian telecommunications system during the first half of the
exclusivity period.
Tom Weston, President & CEO of Solomon Alliance Group, Inc., stated, "We are
very pleased to have completed all of the agreements necessary for this project
to move forward. Solomon is excited to partner with Wavecom Global and the
Republic of Liberia in modernizing its telecommunications infrastructure.
Although the current infrastructure is profitable with 1999 and 2000 combined
net earnings of almost $12 million, it is antiquated, expensive to operate and
prone to increasingly more frequent outages. The new equipment to be installed
will greatly increase Liberia's current telecommunications reliability and
capacity, allow for future capacity expansion, provide service to a larger
geographic area and introduce new communication technologies currently not
available."
"During the first phase of this project," Weston noted, "DRN, Inc., a subsidiary
of the Company that resells telecommunications equipment, will act as the
procurement arm for the joint venture. It will function as a key member of the
network deployment team charged with acquiring and installing over $3,500,000 in
new telecommunications equipment by this yearend, with further equipment
purchases and installations in the future. Our strategic partner, Denwa
Communications, Inc., is bringing its experience to the joint venture and will
provide on-site operations management in Liberia."
Mr. Weston added, "Solomon is receiving its shares in Wavecom Global for its
commitment to provide funding in the form of debt for working capital and
equipment purchases. While there is always some risk associated with an
international venture like this, we have worked hard for our shareholders to
offset risk by negotiating a contract which requires pre-payment for all
telecommunication services by consumers, businesses and the government and
preferential repayment terms to retire the debt owed to us. In addition, we have
secured the right to exercise anti-dilution warrants to maintain our controlling
percentage of Wavecom Global. Finally, we have negotiated a first right of
refusal to fund all future projects of Wavecom Global in Liberia and elsewhere
in order to insure a leadership position as the company grows."
Shareholders are requested to refrain from contacting any of the parties
indicated herein. Unauthorized contact is detrimental to the Company's business
activities. Further information on Solomon Alliance Group, Inc. is available by
contacting Barry Labell of Investor Communications Company at 800/550-5165 or by
visiting their Web site, iccinfo.com.
Please register at ICC's Web site to receive current information and press
releases on Solomon Alliance Group, Inc.
This news release may contain certain "forward-looking statements" within the
meaning of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included in this
release, including, without limitation, statements regarding future plans and
objectives of Solomon Alliance Group are forward-looking statements that involve
various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those anticipated
in such statements.
Important factors that could cause actual results to differ materially from the
Company's expectations are disclosed under the heading "Risk Factors" and
elsewhere in documents filed from time to time with the Securities and Exchange
Commission and other regulatory authorities. The SEC has not reviewed this
release and does not accept responsibility for the adequacy or accuracy of this
news release.
URL: k2go.com
CONTACT: Solomon Alliance Group, Inc.
by
Investor Communications Co.
Barry Labell, 800/550-5165
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KEYWORD: GEORGIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
TELECOMMUNICATIONS
MERGERS/ACQ
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