EXECUTIVE TELECARD ANNOUNCES SETTLEMENT OF CLASS ACTION
FOR IMMEDIATE RELEASE
DATE: April 7, 1998
Denver Colorado, April 7, 1998 - Executive TeleCard, Ltd. (NASDAQ:EXTL) today announced it had entered into an agreement to settle a securities law class action arising out of a proxy contest filed against the Company in 1994. The agreement must be approved by the court. The Company continues to assert that the allegations contained in the proceeding do not have merit. However, the Company views the settlement as being in its best interest.
The Company will pay no cash to the plaintiffs. Under the terms of the settlement agreement, each of the parties will grant unconditional and complete releases of any claim against one another. Among other provisions of the agreement, the Company will distribute up to 350,000 shares of its common stock to shareholders of the class. In the event that the Company's stock trades under $10 per share twenty-four months after the final distribution of shares to the class, under certain conditions, the Company will be obligated to issue additional shares or cash equivalents.
Commenting on the settlement, Christopher Vizas, CEO of Executive Telecard said, "Today's announcement closes the book on what has been a protracted distraction. This long awaited settlement will allow the Company to devote its full efforts and management resources to the Company's business, focusing on increased volume, bottom line profitability and increased shareholder value."
Executive TeleCard is a leading supplier of Global calling card services, and related validation, billing and payment systems, to telecommunication companies and financial institutions. Executive TeleCard also supplies international internet and inter-networking services in partnership with telecommunications operators around the world. Operating through its World Direct network, Executive TeleCard originates traffic in 88 countries and terminates anywhere in the world.
Certain statements in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements express or implied by the forward looking statement. Factors that impact such forward looking statements include, among others, the ability of the Company to attract additional business, changes in expectations regarding restructurings and reductions in cost, possible changes in collections of accounts receivable, risks of competition, price and margin trends, changes in worldwide general economic conditions, changes in interest rates, currency rates and worldwide competition.
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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 |
