(BSNS WIRE) Systems Communications Inc. Announces Dividend Reflecting Po
Systems Communications Inc. Announces Dividend Reflecting Positive Results From
Restructuring Activities
Business Editors
CLEARWATER, Fla.--(BUSINESS WIRE)--Oct. 13, 1998--Systems
Communications, Inc. (OTC BB:SCMI) announced distribution of a
dividend to its shareholders.
The dividend is a result of management's sale of an inactive
subsidiary.
Intelicom International Holding Inc. (IIHI) until recently, a
wholly owned subsidiary of Systems Communications Inc. (SCMI) has
acquired Intelicom International Corp., a privately owned switchless
long distance telephone reseller. Announcements of additional
acquisitions by IIHI are expected to be forthcoming before the end of
1998.
300,000 free trading shares of IIHI, owned by SCMI, will be
distributed to the SCMI stockholders and 70,000 free trading shares
will be held by SCMI for future operations. The dividend will be
distributed to stockholders of record Oct. 30, 1998. The distribution
is expected to give SCMI's stockholders one free trading share of IIHI
stock for every 130 shares of SCMI. Free trading stock certificates
will be issued in early November directly from IIHI's transfer agent.
The IIHI stock is expected to be trading on the OTC Bulletin Board in
late November of 1998, with 625,000 shares in the public float.
In addition, the Company is maximizing additional dormant assets
to generate new revenues for SCMI and dividends for shareholders
through the sale of other inactive subsidiaries. These measures are
being taken to increase existing shareholder value. SCMI has
significantly reduced debt in the last 15 months. Also, during the
third quarter, the Company has consummated additional debt reduction
agreements in excess of 1.5 million dollars.
Currently, SCMI participates with one of its Strategic Alliance
Partners with a Big "3" automotive audit contract. Revenue dollars
are held in reserve until completion of the contract. Said revenues
are expected to be realized in the first quarter of 1999. In
addition, SCMI is currently negotiating proposals with a major
pharmaceutical company and a major aerospace contractor while
solidifying existing Strategic Alliances. SCMI is continuing to build
its infrastructure through its growing network of Alliances.
Systems Communications, Inc. through its Strategic Alliances is
principally engaged in the development of a network of healthcare
management companies, third party healthcare plan administrators and
other healthcare management organizations that collectively offer a
wide array of healthcare cost containment services and products for
resale by the Company to large self-insured companies.
Note: This communication contains certain "forward-looking"
statements as such term is defined in the Private Securities
Litigation Reform Act of 1995 and information relating to the company
and its subsidiaries that are based on the beliefs of the company's
management as well as assumptions made by and information currently
available to the company's management. When used in this report the
words "anticipate," "believe," "estimate," "except," "intend," and
words and phrases of similar import as they relate to the company or
its subsidiaries or company management, are intended to identify
forward-looking statements. Such statements reflect the current
risks, uncertainties and assumptions related to certain factors
including without limitations, competitive factors, general economic,
customer relations, relationships with vendors, the interest rate
environment, government regulation and supervision, seasonally,
distribution networks, product introduction and acceptance,
technological change, changes in industry practices, one time events
and other factors described herein. Based upon changing conditions,
should any one or more of these risks or uncertainties materialize or
should any underlying assumptions prove incorrect, actual results may
vary material from those described herein as anticipated, believe,
estimated expected or intended. The company does not intend to update
these forward-looking statements.
--30--PS/ch*
CONTACT: Systems Communications Inc.
Edwin B. Salmon Jr., 727/530-4800
KEYWORD: FLORIDA
INDUSTRY KEYWORD: MEDICINE INSURANCE DIVIDEND
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