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Friday May 1, 6:33 am Eastern Time
Company Press Release
SOURCE: Digitcom Corporation
Digitcom Acquires Indonesian Telephone Company
SANTA MONICA, Calif., May 1 /PRNewswire/ -- Digitcom Corporation (OTC Bulletin board: DGIV - news) announced today its signing of a letter of intent to acquire PT. Erakomindo Puranusa of Jakarta, Indonesia, in a combined cash and stock deal. Erakomindo is a telephone company serving Jakarta customers with central office facilities and 60,000 lines. Erakomindo's key management will remain in place under terms of the agreement.
''This acquisition will provide Digitcom with central office and network assets and immediate revenues from our presence in Indonesia,'' said Jimmy Chin, Digitcom CEO.
Erakomindo Puranusa owns telephone central office switching facilities and networks of 35,000 lines and 25,000 lines in the capital city. The facility is managed by, and carries traffic for PT. Telekomunikasi Indonesia (Telkom), Indonesia's largest domestic telecommunications company. Contracts with Telkom guarantee a baseline of revenue for ten years, with the possibility of increased traffic revenue in the contract periods.
''The current arrangement with PT. Telkom gives us a foundation of assured revenue to build on with this acquisition. Digitcom will realize from $40 to $50 Million in net earnings on this acquisition over the next ten years,'' said Jimmy Chin, Digitcom CEO. ''In addition to revenues from the existing contracts, we look forward to initiating streams from enhanced services to existing customers, pending Telkom's agreement,'' Chin continued.
Digitcom is an international telecommunications and data network company working with regional and national telephone companies internationally to establish international long distance networks. The company is a leader in Internet voice communications technology and is marketing its Internet-based telephony products under its brands: ''FAXport'', ''NetCall'', ''VOXport'', and ''Mobile Callback''.
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davidh
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