NEWS RELEASE!!!!!!!
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NEWS
RELEASE
January 21, 1997
PRESS RELEASE - FOR IMMEDIATE RELEASE
DCI Signs Letters of Intent with Telephonica Global Holdings (BVI) and
American Cash Card Corporation
Fairfield, CT, Jan. 21/ PR Newswire/ - DCI Telecommunications, Inc., (DCTC -
OTC Bulletin Board) of Fairfield, Connecticut, today announced that it has
signed a Letter of Intent with Telephonica Global Holdings (TGH) to create a
new privately held company (NEWCO). TGH is a telecommunications software and
hardware development company specializing in Internet communications
products.
TGH will enter into a licensing agreement with NEWCO for their proprietary
Internet communications products and services series, PLANETCOMT (phone to
phone voice, fax and data communication over the Internet without the use of
personal computers). PLANETVOICET will be exclusively licensed to NEWCO. A
pre-production commercial prototype of PLANETFAXT is in operation between
Caracas, Venezuela and New York, NY and a PLANETVOICET server is currently
under testing.
NEWCO, which will be valued by both parties, will be 80% owned by TGH with
DCI acquiring 20% ownership from TGH for DCI stock. DCI will receive a 3%
royalty and TGH a 5% royalty on all products sold by NEWCO. A definitive
agreement is expected by February 8, 1997.
In a separate transaction, a Letter of Intent was signed to merge American
Cash Card Corp. (AMCASH), a provider of telecommunications services with
worldwide access into DCI. AMCASH, whose sales exceeded $20.0 million in
1995, has several offices including Miami (manufacturing), Boston (software
development) and its New York headquarters.
The merger with AMCASH, as initially proposed, would be a non-taxable
transaction involving DCI stock. The stock exchanged would be based upon a
mutually agreed upon valuation of AMCASH by the parties. The merger is
expected to take place within ninety days from the date of this release.
DCI Telecommunications is a technology and communications company comprised
of three divisions. The Technology Division develops software and hardware
products for a number of different industries throughout the world. The
Consumer Division designs, develops and markets value added Privilege CardsT
containing a prepaid phone feature and discounts or "privileges" by a
nationwide network of high profile merchants. The Media Communications
Division sells motion pictures and syndicated programming to television
stations and cable companies as well as developing programs in conjunction
with independent producers.
/Contact: Daniel J. Murphy, Vice President, Financial Planning, DCI
Telecommunications, Inc., 203-259-7713, email dcitel@aol.com, website
dcic.com |
