IDT AND EXECUTIVE TELECARD ANNOUNCE STRATEGIC PARTNERSHIP IDT TO LEND EXECUTIVE TELECARD $7.5 MILLION; WILL LEVERAGE EXECUTIVE TELECARD'S SOLID RELATIONSHIPS WITH MORE THAN 40 PTT'S FOR IDT'S FUTURE DEVELOPMENTS
February 25, 1998
HACKENSACK, NJ and DENVER, CO - February 25, 1998 - IDT Corporation (NASDAQ: IDTC) and Executive TeleCard (NASDAQ:EXTL), today announced the signing of a strategic agreement under which IDT will lend Executive TeleCard $7.5 million for the purpose of retiring existing indebtedness. IDT will leverage Executive TeleCard's contacts with carriers and PTT's to develop relationships with telcos worldwide. IDT will also receive low cost access to Executive TeleCard's worldwide telecom network for routing its own traffic as well as 500,000 warrants at market for Executive TeleCard stock. Through its World Direct global communications network, Executive TeleCard has secured ongoing partnerships and service relationships with over 40 international carriers and PTT's around the world with the Company's proprietary CAVIAR technology. The CAVIAR is a unique billing, validation and call routing system which taps into the local PTT's public voice networks to directly connect intra/intercountry calls to virtually anywhere in the world. Executive TeleCard provides PTT's with an opportunity to increase call traffic and revenue.
As part of the arrangement, Chris Vizas, Chairman of Executive TeleCard, will become ex-officio advisor to IDT's Board of Directors and Howard Jonas, CEO of IDT, will be doing the same for Executive TeleCard.
This agreement will enable IDT to rapidly expand the number of operating agreements that it has with PTT's worldwide as well as strengthen Executive TeleCard's position in the market. In Europe, IDT already has established a strong presence in the UK with its facilities-based switch, and has purchased more than 12,000 km of undersea cable connecting the US, Canada, and UK. The Company already has numerous operating agreements with carriers worldwide, and plans to continue the worldwide network expansion as well as joint partnerships and operating agreements. Through recent equity and debt offerings, IDT raised over $200 million for its worldwide telecom expansion.
"We believe that Executive TeleCard's strategic partnerships and switching capabilities will strengthen IDT's existing position in the worldwide telco market," said IDT's CEO Howard Jonas. "We are excited about working closely with Executive TeleCard and its highly respected new management team, and look forward to a long, successful and highly profitable relationship."
"We are delighted with the confidence that IDT senior management has expressed in our new partnership and in Executive TeleCard. We look forward to building this relationship into a strong business combination," said Christopher Vizas, Chairman of Executive TeleCard.
IDT is a leading emerging multinational carrier that combines its position as an international telecommunications operator, its experience as an Internet service provider and its leading position in Internet telephony to provide a broad range of telecommunications services to its wholesale and retail customers worldwide. The Company provides its customers with
integrated and competitively priced international and domestic long distance, Internet access and, through its Net2Phone product offerings,Internet telephony services.
Executive TeleCard is an international telecommunications service company, providing network-based global billing, validation and payment services in the calling card and Internet sub-markets of telecommunications. Executive TeleCard operates at one of the key meeting points of global commerce with services that combine telecommunications, credit cards, and real-time validation, billing and payment systems.
Except for historical information, all of the expectations and assumptions contained in the foregoing are forward-looking statements involving risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements, include, but are not limited to, the competitive environment for Internet telephony, changes of rates of all related telco rates and services, legislation that may affect the Internet Telephony industry, IDT's ability to operate the services described on a large scale commercial level. For additional information regarding these and other risks associated with the Company's business refer to the Company's reports filed with the SEC.
Executive TeleCard, founded in 1987, is an international communications service company providing voice and data services via its World Direct global network to major corporate and carrier partners worldwide and providing enhancements to its partners' global calling cards. Executive TeleCard's products and services include: global calling card services, national calling card platform services, global internet access (eGlobe), international and domestic toll-free service (Service 800) and multi-currency, detailed billing.
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For further information please call Dawn L. Van Zant toll free at 888.368.8704, Samantha Haynes toll free at 888.368.8704 or Heidi E. Hirst toll free at 888.368.8703. |
