SB, some "minor" GEMS news--FAIRFIELD, N.J.--(BUSINESS WIRE)--July 14, 1997--Electronics Communications
Corp. (NASDAQ:ELCC) has signed an agreement with Omnipoint Communications Inc.
(NASDAQ:OMPT) under the terms of which ECC will sell and market Omnipoint personal
communications service ("PCS") in the New York metropolitan area. PCS, called by many
the wireless technology of the future, provides users with many advanced calling features,
utilizing digital technology, resulting in crisp, clear, and secure wireless phone calls. ECC had
previously acted as a sales agent for Bell Atlantic NYNEX Mobile Communications
("BANM") in the New York metropolitan area. ECC terminated its agreement with BANM
because of prohibitions which disallowed ECC to participate in the sale of PCS service.
Under the terms of a settlement agreement between ECC and BANM, BANM paid ECC
$95,000 and cancelled certain amounts payable by ECC to BANM, which amounted to
$358,000. A company spokesman described the termination of the BANM relationship, and
the signing of the Omnipoint agreement as being more in tune with ECC's future plans and
opportunity. "Cellular is the past, and PCS is the future," said Les Winder, executive vice
president of ECC. "Our new relationship with Omnipoint will allow us to maximize the
consumer's thirst for new and innovative wireless products. Additionally, our marketing efforts
will now be focused on PCS, which we anticipate will become a substantial part of our
business as we begin to develop our own PCS licenses in Vermont, Maine, and New York."
Additionally, on June 1, 1997, Les Winder, executive vice president, sold 50,000 shares of
the company's common stock, and on June 15, 1997, William S. Taylor, president and CEO,
sold 290,000 shares of the company's common stock, the proceeds of both sales were given
to the company for general corporate use. ECC, located in Fairfield, is an FCC licensed
paging services provider and operates a state-of-the-art Glenayre (NASDAQ:GEMS) paging
network providing service throughout metropolitan New York, New Jersey, lower New York
state, and lower Connecticut. Additionally, ECC subsidiary, Personal Communications
Network Inc. is an FCC licensed PCS service provider in the state of Vermont, Maine, and
New York. Effective May 1, 1997, officers Les Winder and Bill Taylor reduced their salaries
15% for a one year period. This reduction is intended to allow the company greater cash flow
to increase its now up and running paging base |
