TCTV Company Press Release
Tel-Com Wireless Cable TV Corp. and Ivana Trump, Chairman of Its 5th Avenue Channel Subsidiary, Respond to This Weekend's Press
NEW YORK--(BUSINESS WIRE)--Dec. 7, 1998--Tel-Com Wireless Cable TV Corporation (Nasdaq:TCTV - news) and Ivana Trump, Chairman of the Board of TCTV's 5th Avenue Channel subsidiary today issued a response to articles in Barron's and reported in other publications over this past weekend.
Mel Rosen, President & CEO of TCTV stated: ''It is not our company's policy to respond to articles which attempt to report on our company based on information or allegations about third parties who are not officers or directors or otherwise involved, in any manner, in the management or operation of our company. Nonetheless, the Barron's article requires us to respond.
''TCTV went public in 1995 as a wireless cable television business. When I assumed management control of TCTV in May, 1997, the company had approximately 800 shareholders, including shareholders who had received stock for consulting services and others who had invested in the company's convertible preferred stock which had been converted to common. In short, the new management team inherited a shareholder base. All ongoing consulting agreements which the company had entered into prior to my assuming control in May, 1997, had been terminated by prior mangement.
''Although the Barron's article attempts to connect Charles S. Arnold to the company in some sinister way, the fact is that Mr. Arnold is, at most, a shareholder of our company who was a shareholder prior to my becoming President. He is not an officer or director, nor a consultant of TCTV.
''Mr. Howard Edrich was employed by a consulting firm who performed services for the company. We were unaware of any past problems Mr. Edrich may have had, but the agreement with the consulting firm employing him has been terminated and he has no relationship with the company at this time.
''When we hired Meyers Pollock Robbins as a financial consultant in July 1997, we were unaware of any news conference in which that firm was charged with any fraudulent sales practices. Our investigation showed no securities problems with the firm. When their problems came to light in November, 1997, we promptly terminated our agreement.
''Here are other facts which the article does not mention: I have been an attorney since 1968 with an absolutely unblemished record and endeavor at all times to associate with people who would not tarnish that record. I have undertaken, on a full-time 12 hour per day basis, to build a company that I and our shareholders can be proud of. I have loaned funds to the company since the day I assumed management control, including $550,000 in one recent advance loaned at 8% simple interest with no warrant or stock rights attached. I have never received a salary from TCTV. I have allowed TCTV to use significant assets of mine in Costa Rica, at no cost to the company, to help grow its wireless cable business to its currently profitable position. Meanwhile, I have never sold a share of TCTV stock.
''Over the past year, we have repositioned TCTV as a media and Internet company through the 5th Avenue Channel, which stands ready to launch its Internet site within the next week, perhaps as early as Friday of this week. I have spoken with my 'partner,' Ivana Trump, who has offered her words of encouragement today as we move forward to launch our business.''
Ivana Trump commented: ''Notwithstanding the articles which appeared in Barron's and other newspapers this weekend, I am more than ever committed to the Tel-Com/5th Avenue Channel management team. Individuals mentioned in that article are not officers or directors of the company and they are not involved in management in any way. Company records show that certain individuals who are claimed to own large amounts of TCTV stock were shareholders prior to Mel Rosen's assuming management control in May of 1997. The bottom line is that I believe in the Tel-Com/5th Avenue Channel business plan and I am confident of our success. I plan to issue another more detailed press release later this week in answer to the articles.''
Forward-looking statements (statements which are not historical fact) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission.
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Contact:
Tel-Com Wireless Cable TV Corp., Miami
Samuel H. Simkin, Vice President & General Counsel
305/947-3010
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