Telegroup Appoints Three Outside Directors
FAIRFIELD, Iowa--Telegroup Inc. (NASDAQ: TGRP), a leading alternative provider of international telecommunications services, announced today the appointment of three outside directors to its seven member Board of Directors, filling all Board vacancies. The outside directors are Steven J. Baumgartner, J. Sherman Henderson III, and Rashi Glazer. Messrs. Baumgartner and Henderson will serve on the Compensation and Audit Committees, and Mr. Glazer will serve as a consultant to the company. These directors will serve until elected by the shareholders at the company's annual meeting in the spring of 1998, at which time it is anticipated that they will be elected by the shareholders to the Board.
Mr. Baumgartner is Executive Vice President and Sector President Global Commercial Print, for R.R. Donnelley & Sons Company of Chicago, Illinois.
Mr. Baumgartner is responsible for all R.R. Donnelley printing business outside the United States and also is a member of the five-person executive committee of this $6.5 billion company. Mr. Baumgartner formerly served as Executive Vice President of R.R. Donnelley responsible for strategy, communication, technology and human resources for the company.
"We are pleased that Steve Baumgartner is joining our Board," said Clifford Rees, Chief Executive Officer. "His wealth of experience in strategic planning, marketing and issues confronting multinational business will be a great asset to Telegroup as we grow, domestically and internationally."
Rashi Glazer is a leading expert in the area of competitive marketing strategies, including interactive and database marketing, and consumer and managerial decision making. Mr. Glazer is currently on the faculty of the Walter A. Haas School of Business, University of California, Berkeley and Co-Director of the Berkeley Center for Marketing and Technology. Mr. Glazer also was on the faculty of the Columbia University Graduate School of Business. Mr. Glazer has consulted to or conducted executive education programs for AT&T, BellSouth, IBM, Intel, Motorola, Pacific Bell, Southwestern Bell and numerous other Fortune 500 companies.
"Rashi Glazer will be an enormously valuable resource for Telegroup as it moves forward with cutting edge marketing approaches to achieve its growth objectives. We are fortunate to have an individual of Rashi's caliber helping guide our marketing strategies," commented Mr. Rees.
Sherman Henderson also has joined the Telegroup Board. Mr. Henderson is President and CEO of Louisville-based UniDial Communications and has over 35 years of business experience in sales, marketing, management and company ownership. Mr. Henderson was elected Chairman of the Telecommunications Resellers Association's Board of Directors. He previously served as a two-term Treasurer and a one-term Membership Chairman of that Association.
"Sherm Henderson is considered among the most innovative businessmen in the telecommunications field," Mr. Rees said. "He will bring his direct experience in developing a fast growing telecommunications company to bear in guiding Telegroup's development and marketing strategies."
Commenting further, Mr. Rees stated: "These three distinguished individuals represent the first of many individuals that the company anticipates it will attract to provide leadership and guidance so that Telegroup will move forward in meeting its objective of making a major impact on the future of the telecommunications industry."
Telegroup is a leading global alternative provider of long distance telecommunications services. The company offers a broad range of discounted international, national, value-added wholesale and enhanced telecommunications services to small- and medium-sized business, residential and wholesale customers in over 180 countries worldwide.
Telegroup has achieved its significant international market penetration by developing what it believes to be one of the most comprehensive global sales, marketing and customer service organizations in the international telecommunications industry. Telegroup operates a digital, facilities-based telecommunications network to deliver its services in a reliable, flexible and cost-effective manner to approximately 268,000 active customers worldwide. According to Federal Communications Commission statistics, Telegroup was the thirteenth largest U.S. carrier of long distance traffic in 1996.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This press release contains statements which are not historical facts and may be considered forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as statements regarding expected future performance of the company. Telegroup's actual results might differ materially from those projected by those statements due to numerous factors, including the company's success in developing its business plan and acquiring additional financing needed to meet this plan, foreign currency fluctuations, termination of certain operating agreements, and changes in tax law.
CONTACT: Telegroup Inc., Fairfield
Douglas A. Neish, 515/472-5000
dneish@telegroup.com
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