Brad,
News out...
(PR NEWSWIRE) DJ: DCI Telecommunications and DataWave Systems Join to Form
DJ: DCI Telecommunications and DataWave Systems Join to Form Canada's Largest
Independent Phone Card Supplier
STRATFORD, Conn., Feb. 11 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC
Bulletin Board: DCTC), an international supplier of telecommunications
services, announced today that it has entered into a definitive agreement
with DataWave Systems, Inc. (OTC Bulletin Board: DWVSF, VSE: DTV.V),
manufacturer of the only intelligent prepaid calling card dispensers, to
create a joint venture for the marketing, sale and service of prepaid long
distance telephone calling cards in Canada. The new entity joining DataWave
and DCI's Cardcaller Canada, Inc. subsidiary will become Canada's single
largest independent company devoted solely to the sale of prepaid calling
cards. With combined revenues in excess of $10 million (CDN), it will
control 40% of the Canadian marketplace and will be twice as large as the
next largest competitor.
Under the terms of the agreement, DataWave and Cardcaller Canada will
contribute all existing Canadian business to the joint venture. DCI will
own 60% and DataWave 40% of the new company.
Both DataWave and Cardcaller Canada stated that this joint venture
represents the most efficient and cost-effective strategy for increasing
market share, consolidating a fragmented Canadian marketplace and increasing
profitability. According to Clive Barwin, CEO and president of DataWave,
"The Canadian marketplace offers significant opportunities for growth. This
new partnership will allow us to aggressively focus on increasing market
share while consolidating and acquiring other prepaid calling card
companies. This, in turn, will allow us to offer customers an improved
product through more efficient, streamlined service operations."
Charles Zwebner, president of Cardcaller Canada, said, "DataWave's
technology is extremely compatible with our needs, and adds a powerful new
dimension to the services we offer our customers." Cardcaller, a wholly
owned subsidiary of DCI Telecommunications, was the first company to
introduce prepaid calling cards to the Canadian marketplace.
This agreement, described by DCI as part of its overall growth plan, follows
a previously announced agreement for DCI to acquire WorldPass Communication
Corp., a $15 million privately held company located in Aventura, Florida.
WorldPass, a historically profitable company that offers long distance
services in South America, also is a registered Internet Service Provider.
DCI Telecommunications is an international supplier of telephone services,
including long distance, prepaid cellular and Internet products. DCI has an
extensive distribution network in North America, Europe and the Far East and
owns telephone switching facilities in Canada, the United Kingdom and
Denmark. The company reported sales of $4.6 million and $1.3 million in
profit (or 13 cents per share) for the first six months of fiscal 1998,
recently declared a special dividend of one cent per share on common stock
and announced a $5 million common stock buyback program.
Safe Harbor Statement under the Private Securities Litigation Act of 1995:
The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with the new
uncertainty of future financial results, additional financing requirements,
development of new products, regulatory approval processes, the impact of
competitive products or pricing, unpredictability of patent protection,
technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings with the Securities and
Exchange Commission.
/CONTACT: Craig K. Murphy, Director, Investor Relations of DCI
Telecommunications, 203-380-0910, ext. 301, or dcitel@aol.com/
|
