Carnegie Acquires ACC Telecom
HUNT VALLEY, Md.--(BUSINESS WIRE)--May 19, 1998--Carnegie International Corp. (OTC:BB CAGI) announced Tuesday that it has acquired ACC Telecom, which will be the distribution arm for Carnegie's sales and marketing in North America of its highly anticipated and heralded MAVIS(TM) (Multi-Language Automated Voice Independent System) product.
ACC Telecom, which is the trade name for Harbor City Corp., sells, installs and services equipment manufactured by the following industry leaders: COMDIAL, SONY, BELL SOUTH and SPRINT. ACC Telecom has a current customer base of about 3,000 business customers, and is the 2nd largest commercial COMDIAL (NASDAQ:CMDL) distributor, with 1997 revenues exceeding $3.5 million.
The acquisition of ACC Telecom included an issuance of 200,000 shares of preferred Carnegie stock convertible to rule 144 restricted shares of Carnegie common stock within a 24 month period plus $1 million to be paid quarterly over the next five years.
ACC Telecom's President Barry Hunt stated that "we are delighted to join the Carnegie family and excited to have the opportunity to market MAVIS(TM), which is the most exciting telephony technology I've seen in my 20 years in industry."
Lowell Farkas, Carnegie International Corp.'s president and CEO stated that "this acquisition and the ACC Telecom relationship with such industry leaders as COMDIAL, SPRINT, BELL SOUTH and their several thousand strong dealer network give Carnegie a dramatic entree and points of distribution into the North American telephony market by experienced and established telephony sales forces.
"I have stated previously that only 1% of the OEM market would represent $48 million in combined revenue and $8 million in contribution to Carnegie on an annualized basis. These figures do not take into account the millions of business phone systems in use today that can be retrofitted by the dealers with MAVIS(TM) and its state-of-the-art Voice Activated Automated Attendant and Voice Mail products. -0-
Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corp.) contain statements that are forward looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts.
Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any toward-looking statements made by or on behalf of Carnegie International Corp.
These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state laws, and market competition factors.
CONTACT:
Carnegie International Corp.
Lowell Farkas, president & CEO, 410/785-7400
fax: 410/785-7412
carnegieint.com
KEYWORD: MARYLAND
BW1136 MAY 19,1998
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