Tuesday August 14, 12:03 pm Eastern Time
Press Release
SOURCE: VersaCOM International, Inc.
VersaCOM Lands $39 Million Contract to Install Government DSL Lines
Government Employees Telecommuting Initiative Contract Projected to Produce Profits Averaging $4-6 Million Annually for the Company
BOCA RATON, Fla., Aug. 14 /PRNewswire/ -- VersaCOM International, Inc. (OTC Bulletin Board: VERC - news) announced today that it has signed a new Agreement with Net Connections Corp. (NCC) to install Digital Subscriber Lines (DSL) in conjunction with the government's telecommuting initiative for government employees. The General Administration Agency (GSA) is the lead agency in this initiative.
The Agreement with NCC calls for VersaCOM to supply all equipment and labor to complete the installations for government agencies. As a supplement, GSA has now included the installation of DSL at eligible government workers' residences. VersaCOM will fully recover all expenses associated with work performed under the Agreement and share equally with NCC in all profits. The two companies will also share in the residual fees that are earned monthly from supplying the high-speed data connections. These are estimated to average nearly $1 million during the initial year of the Agreement and grow to over $7 million dollars during the final year of the five year Agreement. Estimates are based on the contract's projected maximum rate of installations.
Any required cable installation required during the installs, as well as any network interface card installations required by end user systems, will be performed by VersaCOM at additional cost over and above the value of currently contracted services.
Under this same Agreement, VersaCOM may be called upon to supply and install Virtual Private Network (VPN), services, firewalls, ISDN services, T1 and T3 high speed communications services and wireless data communications systems and services. Installation of cabling, network interface cards, VPNs, firewalls, high speed and wireless communications systems are anticipated to significantly increase the total value of VersaCOM's portion of the contract with NCC.
Installation work will be performed by VersaCOM employees and by its authorized service partners.
John Kaiser, VersaCOM's Chairman of the Board said, ``We are excited to be working with a national company like Net Connections Corp. We were selected for the job because of our reputation for delivering quality solutions to our clients and for completing work on schedule. This places us squarely in the DSL market which is one of the fastest growing segments of the telecom market. All of the major service providers are investing literally billions to build-out DSL infrastructure. So obviously this is a great part of the market for VersaCOM to be focusing on and certainly this contract establishes us a viable option for anyone requiring these services -- regardless of the magnitude of the project.''
``This is an important win for 2-1/2 year old VersaCOM from both a strategic perspective and from a revenue perspective. This contract will provide a significant increase in revenue to VersaCOM and allow us to prove our ability to function on this level,'' said Fred Schwartz, President and Chief Executive Officer of VersaCOM. ``In the future we will certainly seek other partnering opportunities such as this one with other strong players in this marketplace.''
``Network Connections Corp.'s core business is in working with large clients both in industry and government. Large entities require a company like NCC that can accommodate their rapid growth and the need for rapid role outs of technology initiatives such as this one,'' said Ray Bolouri, Chief Executive Officer at NCC. ``When seeking a partner for this program, we needed one that could move quickly, had expertise in data communications and had a solid reputation for delivering quality work and meeting schedules with its other clients. VersaCOM has a strong management team and that is critical,'' he added.
VersaCOM International, Inc. is a Boca Raton, Florida based full-service provider of telecommunications systems, data networks and related products and services throughout the United States. In addition to designing, distributing, installing and programming telecommunications and data systems, VersaCOM offers cabling, training, product customization and 24 x 7 customer support and maintenance. VersaCOM also markets local and long distance communications services as an authorized BellSouth partner and a reseller for Cable and Wireless. Lastly, VersaCOM's technicians and engineers provide on-site system/network administration and other technical support. VersaCOM specializes in providing voice and data solutions to companies with more than one business location. These companies have special needs for consistent, responsive services.
VersaCOM International, Inc. was incorporated in Florida in January 1999. In addition to the corporate headquarters in Boca Raton, the company has regional operations in the Baltimore-Washington metropolitan area and the New York-New Jersey metropolitan area, Winter Garden, FL serving Orlando and central Florida and southern Maine serving the New England states. It also employs a Vice President of Marketing based in Southern California. For more information on VersaCOM International's products and services, please see their web site at: www.versacominc.com
Net Connections Corporation is a branch of USS.net, an Illinois corporation, organized in April of 1997 with the express purpose of providing superior, value driven, Internet solutions. In January of 1998, USS.net began offering customized Internet solutions to the business community after embarking on an upgrade of its network to provide state-of-the-art technology, secure data center environment, and greatest system availability in the market.
In May of 1998, Net Connections moved its corporate offices to be nearer to its data center and opened its Washington, DC office. This allowed Net Connections Corp. to offer regional and national clients improved connectivity and support. Net Connections will continue to be a leading edge technology provider for its value driven consumer division and customized business services. For more information about Net Connections, visit their web site at: www.nccdsl.com.
This press release contains forward-looking statements. The words ``estimate,'' ``possible,'' and ``seeking'' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject too risks and uncertainties, some which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition, the ability to raise capital, the ability to properly perform the contract requirements, and other material risks.
VersaCOM International, Inc.
www.versacominc.com
800.531.1577 extension 254 Fax 949.653.0113
SOURCE: VersaCOM International, Inc. |
