Thursday November 12, 2:17 pm Eastern Time
Company Press Release
ADGI's Internet Affiliate Announces Revenue Agreement
HICKORY, N.C.--(BUSINESS WIRE)--Nov. 12, 1998--American Diversified Group (Nasdaq BB:ADGI - news) announced Thursday that its Internet telephony affiliate, Global Transmedia Communications Corp. (''GTCC'') has signed an agreement with the Anditel Group of Companies (''Group'') to provide GTCNetLink in Colombia, South America.
GTCNetLink is a private subscriber-based calling network. Under terms of the agreement the Group has committed to purchase calling minutes from GTCC for resale to major multinational corporations, individuals and local Internet Service Providers who will re-market the Internet calling minutes to their subscribers.
This agreement is a tremendous breakthrough for GTCC as the terms require guaranteed purchase of calling minutes each month in each city GTCNetLink services will be provided. Sales have commenced in Bogota, the hub of international business in Colombia and accounts for over 55% of international calling from Colombia. Annual outbound international calling from Colombia accounts for over 90 million minutes per year and it is estimated that inbound calling is three times that amount.
The agreement calls for each GTCNetLink gateway to purchase a minimum of 360,000 calling minutes per server. Within the first 60 days it is estimated the annual calling rate should increase to over 900,000 calling minutes per server. Each GTCNetLink server is capable of servicing up to 1.2 million calling minutes.
Under ADGI's present agreement with GTCC, it is anticipated that income to ADGI will commence by the beginning of December 1998 and GTCC projects that the minimum guaranteed income per server of $82,000 increasing to $198,000 based on the 900,000 minutes calling rate.
GTCC works with and is in regular communication with the major multi-national telecommunication companies, some of which have expressed interests in a joint venture or other working relationship.
For further information, ADGI's Broadcast Fax System provides ADGI information (releases, news letters, shareholder updates) and is accessible to all ADGI shareholders via fax). ADGI has a Web Page at www.adgrpinc.com and E-Mail address adgi@abts.net.
Except for the historical information herein, the matters discussed in this press release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary based upon a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing demand, the impact of competitive products and pricing, changing economic conditions and other risk factors contained in the company's most recent annual report and other filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
American Diversified Group
Executive Offices
828/322-2044, fax 828/322-3798
or
NY Investor Relations
212/332-5009, fax 212/332-3249
--------------------------------------------------------------------------------
|
