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DCI Re-Enters Quiet Period
STRATFORD, Conn., Dec. 18 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC Bulletin Board: DCTC - news), an
international provider of telecommunications and Internet services, announced today that it will be entering a ''quiet period.''
This means it will be unable to provide nonpublic comment or guidance on the Company's activities in the near-term.
Joseph J. Murphy, president and CEO of DCI, stated, ''It is necessary for the Company to adopt this quiet period due to
certain activities being undertaken that relate to enhancing shareholder value.'' The Company had recently emerged from a quiet
period on December 7, 1998 which was related to international business development.
DCI recently announced the signing of a definitive agreement to merge with Wavetech International (Nasdaq: ITELD - news).
The merger would create an international telecommunications carrier with enhanced services and call management switching
equipment for service in the U.S., Canada and Europe. At closing, Wavetech will exchange one share of its common stock
(after affecting a 1 for 6 reverse) for each share of DCTC. The transaction must be approved by shareholders of both
companies and is expected to be ratified early in calendar year 1999.
The Company also recently announced an alliance with IXC Communications, Inc. (Nasdaq: IIXC - news) which elevates DCI
to a global carrier status. Under terms of the agreement, IXC, a one billion dollar market cap company, acquired a 13%
ownership position in DCI. IXC is also the owner of 13,000 miles of fiber optic cable throughout the United States.
This global interconnection agreement gives DCI the ability to link its existing, and planned, switching facilities in Europe and
North America with high speed, dedicated lines thereby creating a telecommunications network that gives the Company the
ability to least cost route voice traffic to its ultimate destination anywhere in the world. DCI will also be co-locating switching
equipment at various IXC facilities around the globe and will have the ability to sell private lines both domestically and
internationally. This agreement allows DCI's telecommunication subsidiaries to increase profit margins on several products by as
much as 10-15%.
DCI is an international provider of telecommunications services, including long distance, prepaid telephone cards and Internet
services. It has an extensive distribution network throughout North America, Europe and the Far East, owns telephone
switching facilities in Canada, the United Kingdom, Spain and Denmark, and has 12 operating facilities serving customers in
eight countries. DCI recently reported revenues of $17 million for the first six months of its current fiscal year, versus $5.8
million in the comparable prior-year period. DCI is a publicly traded company listed on the OTC Bulletin Board under the
symbol DCTC. DCI's web site is at www.dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995: The statements which are not historical facts
contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not
limited to risks associated with the new uncertainty of future financial results, additional financing requirements, development of
new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent
protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings
with the Securities and Exchange Commission
SOURCE: DCI Telecommunications, Inc.
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