DGIV News 05/01 BBNS
Kerry
Digitcom Acquires Indonesian Telephone Company
PR Newswire - May 01, 1998 06:33
DGIV %TLS %CPR %TNM V%PRN P%PRN
SANTA MONICA, Calif., May 1 /PRNewswire/ -- Digitcom Corporation
(OTC Bulletin board: DGIV) 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".
SOURCE Digitcom Corporation
/CONTACT: Orville Baldridge. Worldvision Financial - 407-834-8944,
wvfg.com; Liberty Capital Group, 360-676-8072,
libertycap.com
/Web site: digitcom.com
(DGIV)
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