WLGS *** News Release ***
World Wide Wireless Communications Announces Execution of Letter of Intent to Acquire WSI Inc.
December 23, 1998 08:00 PM SAN FRANCISCO--(BUSINESS WIRE)--Dec. 23, 1998--World Wide Wireless Communications Inc. WLGS Wednesday announced that it had entered into a letter of intent to acquire WSI Inc. and its affiliated companies (hereinafter "World Service Corporate Entity"). The acquisition, by which the World Service Corporate Entity becomes a wholly owned subsidiary of World Wide Wireless, shall be accomplished through the issuance of two-year restricted shares equal to 12.5 percent of the company's outstanding shares. The World Service Corporate Entity, with some 45 employees in Puerto Rico and revenues last year of approximately $7 million, is a leading company on the island specializing in telecommunications solutions for businesses. It is an authorized distributor of communications products and services for the Business Communications Systems division of Lucent Technologies. World Service Corporate Entity sells some 15 individual products to business users in Puerto Rico and the Virgin Islands. In addition to the revenues mentioned and approximately $2 million in fixed assets, World Service Corporate Entity also brings to World Wide Wireless a $6 million line of credit. World Wide Wireless expects proceeds from the credit line to substantially assist the company in the development of its wireless Internet division as well as its VDMA chipset technology. In addition, under the terms of the letter of intent, Howard K. Hager, the owner of the World Service Corporate Entity, will join the company in a management capacity. Hager brings more than 20 years' experience in management and engineering expertise to the company. He was founder and past president of Hager Telecommunications Inc., which was the first value-added reseller of the AT&T Conversant interactive voice product line. From 1991 to 1996, Hager was president of Hager International Voice Research Inc., which specialized in the international marketplace and developed several new products and applications using the company's proprietary voice processing technology. In 1996 he formed WSI, which then purchased from AT&T Puerto Rico its product and services division which remains the basis of the World Service Corporate Entity business today. In addition to providing World Wide Wireless with a substantial and immediate revenue stream and important line of credit, the acquisition of the World Service Corporate Entity conforms to the company's plans for national and international expansion into Latin America. The Puerto Rican operations of the combined companies serve as a convenient starting point for penetration into the Latin American market both for wireless Internet services and for the VDMA portable telephone.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control, delays in development and testing of products, and fluctuations in demand for the products and services of the company. |
