Monday April 20, 9:31 am Eastern Time
Company Press Release
Franklin Telecom Spins Off FNet as Independent Subsidiary
Magruder Tapped to Build World-wide Voice over IP Network
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--April 20, 1998--Franklin Telecom (OTC:FTEL -
news) today announced that it is spinning off its Internet Telephony subsidiary FNet Corp. as an
independent operation. James L. Magruder has been appointed Chief Executive Officer for FNet Corp.
Magruder brings over 30 years of experience in the telecommunications services industry. Before joining
Franklin, he served as President and Chief Operating Officer of Zephyr Telecommunications. Prior to
this, he was Vice President of Orion Network Services, the first competitive satellite system providing
circuits in and between Europe. Magruder was also a key member of MCI's data communications
marketing team between 1990 and 1994.
Franklin Telecom's President and CEO Frank Peters stated, ''This is a momentous occasion for Franklin.
Securing someone with Jim Magruder's talent, experience and associations within the Telecommunications
industry means that FNet Corp. will have the leadership it needs as it becomes independent of the parent
company. He has both the business savvy and the technical expertise to lead FNet forward in the
emerging Internet Telephony marketplace.''
According to Magruder, ''Our mandate is straightforward and exciting; we are going to build a global
Voice over IP Network, utilizing Franklin's Tempest Data Voice Gateways. By integrating both cutting
edge Voice over IP technology and conventional telephony into our network, we can fulfill our
commitment to provide the finest domestic and international voice quality at the lowest cost.''
Magruder continued, ''Our management team will be well versed in what it takes to build a successful
service company. While FNet is now an independent subsidiary, our relationship with Franklin Telecom
allows for unparalleled vertical integration from the design and manufacture of the necessary hardware
through to the deployment and management of our IP Network.''
Magruder will also assume a seat on FNet's Board of Directors.
The primary business of Franklin Telecom (OTC:FTEL - news), founded in 1981, is the design and
manufacturing of communications devices, high speed LAN, WAN, Telco and Satellite Systems and
software. Franklin has an installed base of over 100,000 nodes worldwide. Franklin's Internet Telephony
subsidiary, FNet, provides services using FTEL products.
Certain statements in this press release constitute ''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
forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance, or achievements of the Company to be materially different from
any future results, performance, or achievements, expressed or implied by such forward-looking
statements.
Contact:
Franklin Telecom
Diane McCarthy / Helen West, 805/373-8688
hwest@ftel.net |
